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Buying Lynden, WA real estate is exciting, but also overwhelming as there is a learning curve that comes with it. If you are new to the process, you may not realize that there are mistakes you can make that can heavily impact your buying power. If you are getting ready to embark on this new venture OR you are in the beginning stages, be sure to read this.
Mistake #1: Don’t wait to get pre-approved
Just so we are clear, and I just covered this in another blog, pre-approved and pre-qualified are two very different things. Pre-approved lets you know how much your loan is actually for. Pre-qualified is simply an estimate. Pre-approved shows sellers that you are serious about buying their home for sale in Lynden, WA. With how competitive the market is right now, having this step done first usually moves your offer to the top of the pile. While we are on this topic, be sure to ask your Lynden, WA realtor for a recommendation when it comes to a mortgage lender.
Mistake #2: Shopping over budget
This is another perk to getting pre-approved: You know how much you can actually afford. Which means you aren’t wasting your own time (not to mention your Lynden, WA realtor’s time AND the seller’s time) looking at homes for sale in Lynden, WA you can’t put an offer on.
Mistake #3: Making a lowball offer
Lynden, WA real estate is in a seller’s market, which means low balling is not the way to go. This isn’t even recommended in a buyer’s market. The logic behind it makes sense if seller’s are desperate to move a home for sale in Lynden, WA. You hope that if you make a lowball offer, they will counter and then you will counter and then end up getting the home for a price both parties are happy with. Right now, homes are going for close to full price if not over in some scenarios. If you low ball on Lynden, WA real estate that is priced at market value, the chances are high that your offer won’t even be looked at. Of course if you are using a qualified Lynden, WA realtor, you can rest assured that the offer price they advise you to make will be a good one.
Mistake #4: Purchasing something MAJOR while in escrow
This is not the time to finance something. Had your eye on a something big and shiny and new? Wait. Whether it is a new car, a boat, a motor home, a new credit card or anything that will pull your credit and change your debt to income ratio. If you think you locked in a certain loan amount and you are in the clear to be foot loose and fancy free with your finances during the pending process, you are incorrect. The lender’s under-writer will re-check your credit report right before close to confirm you can still qualify for the loan. Making a big purchase could have a negative impact and could cause your financing to fall through or change last second.
Mistake #5: Not saving for the closing costs
You must set aside money to cover the closing costs if you are expected to help cover this expense. If you don’t, you may not make it to signing and could even lose your earnest money deposit. Be sure to read the estimate from your mortgage lender on what the costs will be before you make an offer on real estate in Lynden, WA. This is something that is legally required but some buyers don’t read it. Usually, this cost ranges from 2% to 7% of the purchase price. While the sellers and the buyers generally split the closing costs, the buyers usually cover a bigger chunk so be sure to save enough to cover your portion.
If you are ready to buy a home for sale in Lynden, WA, give me a call. As a qualified Lynden, WA realtor, I would be happy to assist you with the process.
