So many first time home buyers or a home buyer that has not purchased in many years may have the thought that buying a home can be overwhelming and stressful. Today, in the video above, as well as this article, we discuss some tips for a smooth and stress free home buying transaction to help eliminate the anxiety and stress related to buying a home.
There are number of things that are home buyer can do in order to prepare themselves in to eliminate as many hiccups as possible. I also have a download that you can click for here that will give you these tips for a smooth and stress free home buying process.
The very first step is laying the groundwork. As a new home buyer its vital to start collecting all your financial documents so that you have them available and ready for the lender(s). This includes bank statements, tax returns, & pay stubs to name a few- (dd214 if VA home buyer). In the beginning, you may want to interview 3 or 4 different lenders. This is highly advised for not only finding out what fees they charge but also what interest rate they can offer you. The great thing is the credit bureaus will allow you to check out and interview different lenders and within about a 45 day window, if you have your credit checked during that time all for trying to buy a home that will be all included as one total inquiry reduction which can be between 5 and 7 points.
US News shared in their article about a home buyer shopping lenders, “Because inquiries signal that you are thinking of taking on new debt, your credit score can dip. But the good news is that the damage from multiple credit checks by mortgage lenders is typically small.
Even better, a little planning makes keeping your score in top shape relatively easy as you shop for a mortgage.
Shopping Within a 45-Day Window
When lenders use the most recent FICO scoring model, consumers have 45 days to comparison shop for mortgages without damaging their credit.
Multiple credit checks from lenders within that window will be recorded as a single inquiry on your credit report. The effect on your credit is the same, no matter how many mortgage lenders you consult, according to the Consumer Financial Protection Bureau.” (US News article reference)
US NEWS: https://loans.usnews.com/articles/how-to-shop-for-a-mortgage-without-hurting-your-credit-score
Another thing that’s important as a home buyer to consider when interviewing lenders is the personality of the lender. You will be disclosing and sharing very private information so you want to be and feel comfortable with that lender. 🙂
The second tip is to work with an agent. it is very important to work with a real estate agent or realtor during the home buying process. you will get a lot of extra guidance and support that you would not get if you were not working with an agent. For the most part you will not have to pay any large expense for this help. in some states there is a buyer broker transaction fee like there is in Las Vegas but otherwise did you not pay any substantial amount.
The third tip is communicate effectively . if there is something that doesn’t make sense then speak up and ask questions. I always say there is no dumb questions. if anyone ever makes you feel like you’re asking a dumb question then you probably don’t have the right person on your team. There is a lot that goes into buying a home in a lot of documents to review and sign. It is important to take the time to review these documents and to read these documents so you truly understand what is going on.
Next fourth tip is to be patient, persistent and decisive. During the home buying process you may be asked for documentation from the lender and at times they lose documents and re ask for them again. And also you may have to try new software programs like E-signing documents and that can sometimes have a small learning curve. However, being patient is very important and that ties us into the very last tip is to be flexible during the process. There are so many unknowing obstacles and challenges that we may experience and the more flexible you can be, the easier it will be to make this a stress-free transaction.
I also have a download that you can click for here that will give you these tips for a smooth and stress free home buying process. If we can be of help to you, don’t hesitate to reach out!
Here is the real estate glossary for your review.