WHY YOU NEED A REAL ESTATE BROKER AND A LOAN OFFICER

Dated: July 9 2019

Views: 69

A few thoughts for a prospective Buyer: whether you’re a first-time home buyer or on your second or third home, it’s not always easy to make the best financial decisions. Here are some common mistakes we find among buyers:

BUYING MORE HOME THAN YOU CAN AFFORD- While the bank may qualify you for a generous mortgage amount, it’s not necessarily a good idea to take the whole amount. Don’t forget, the mortgage is still only one part of your monthly expenses. A good rule of thumb I recommend is to use as a base your current housing cost (rent or mortgage) and assess how easy or difficult it is to pay this amount every month.

NOT SETTING ASIDE MONEY FOR CLOSING COSTS – Buyers often get sticker shock at the closing table if their agent hasn’t outlined all the checks they will be writing.  A Buyer needs a net sheet of the cost prior to engaging in the process.

CHANGING JOBS DURING THE LOAN PROCESS – or deciding to become self-employed during this period – Lenders want to see a two-year work history.

NEGLECTING TO KEEP A PAPER TRAIL FOR CASH GIFTS – Using a cash gift or windfall for part of your down payment requires a paper trail – a gift letter from Mom and Dad or other source -- and a bank statement showing where you deposited it.

APPLYING FOR OTHER NEW CREDIT DURING THE APPLICATION PROCESS – Banks are looking at your debt-to-income ratio when deciding on your loan approval. Something as simple as getting an additional credit card will reduce your credit score and throw the process out of whack.

Blog author image

Michele Vasilescu MA, '84 New York University

I am a real estate professional licensed in Florida, with twelve years of experience in residential real estate, including the luxury sector. I am certified by the National Association of Realtors as ....

Latest Blog Posts

CAPTURING THE VACATION AND LIFESTYLE VIBE

AS A SECOND HOME VACATION SPECIALIST, I recommend sellers to steal these 8 hotel design secrets:1. Make sure buyers get that same emotion when they step into your house: Re-create that

Read More

VIRTUAL STAGING

VIRTUAL STAGINGYou can make any listing picture-perfect with virtual staging tools, which can do everything from manipulating the appearance of skies in photos to making empty properties look like

Read More

MERCHANDISING AND MARKETING YOUR PROPERTY

-Merchandising:·       how to price, package, position·       search engine pricing strategies·   ;

Read More

WHY YOU NEED A REAL ESTATE BROKER AND A LOAN OFFICER

A few thoughts for a prospective Buyer: whether you’re a first-time home buyer or on your second or third home, it’s not always easy to make the best financial decisions. Here are some

Read More