10 “Did You Know?” Homebuying Details

In this article we take a look at 10 “did you know?” details about buying a home. If you want to know more or have questions about any of the information below please call or message me. I’m glad to help!…

#1 Getting Pre-Qualified/Pre-Approved     Pre-Qualified
It’s best to get pre-approved/pre-qualified even before you’ve found the dream home. Sellers want reassurance that you can buy the house. There’s nothing worse than finding your dream home, only to find out a month into the process you can’t afford it. Some sellers won’t even entertain an offer without a pre-approval letter! And remember, pre-qualification is NOT a guarantee.

#2 Pay Monthly Debt Timely     Debt Free
Even before you’re ready to house shop, pay your monthly debt in a timely manner. Whether it’s a student loan, credit card debt or even that monthly utility – nothing can negatively impact your credit score like a delinquency. Be timely consistently! A delinquency takes as much as 7 years to get off your credit report.

#3 You Don’t Have to Stress     Stress Free Zone
Home buying doesn’t have to be chaotic. Have a folder where all the items related to your search can be placed. Make a wish list divided into “Need” and “Want” to laser focus the type of house and amenities you want so you don’t settle.

#4 YOU Select Your Mortgage Company     Mortgage App
Interview at least 4 mortgage companies to find the one that will work for YOU. Know what you’re looking for in a loan – Conventional vs. FHA, fixed rate, 30yrs vs. 15yrs, etc. Once determined, get pre-approved and LOCK in a rate.

#5 Penny Pinching Goes a Long Way     Penny Pinching
As soon as possible – save, save, save towards that down payment on a house and the extra expenses after buying a house – setting up utilities, furnishings, etc. Find ways that work for you to save or earn more towards your goal – cutting out cable, eating out, a 2nd job, etc. This will keep you focused on your goal and ways to get you there quicker. Such as creating a budget and sticking to it.

#6 Timing is Everything, Don’t Hesitate     Clocks
Houses in SW Florida can go quickly, especially due to cash buyers and whether it’s peak or off-peak season. The median time on market for June was 56 days. While the best practice is to take your time as a house buyer, once you see the house you want, don’t hesitate. Especially once all ducks are in a row financially, it will go more smoothly and help insure you get the house you want.

#7 Don’t be Shy, Bargain     Bargain
When dealing with home price negotiations, tread lightly. Discuss with your Realtor negotiating tactics and gather all information. This process can be a back and forth battle of wills. Here are a few tips to help your bargain effort:

  • Go into purchase negotiations primed with as much information as you can gather
  • Don’t lowball. The seller wants to know you’re serious
  • Keep a poker face and remain calm
  • Know when to walk away
  • Know when to throw in the towel and accept a price

#8 Consider Life After You Buy     Cash House
The excitement of buying a home can blind the homebuyer to the true expenses of home ownership. Before going into a mortgage, fully understand the terms and break down of what your monthly payment will be and include:

  • Principal
  • Interest
  • Taxes
  • Insurance

Just because you’re qualified for a certain amount, may not mean you want that monthly payment once all the fees, principal and interest are added into it. Make sure your comfortable with the bottom-line monthly payment!

#9 Consider Life After You Buy (cont.)     Moving
Part of the excitement of homeownership can easily overlook expenses needed to move in and set up the home. Don’t forget to factor in (i.e. save towards):

  • Moving expenses
  • Setting up utilities
  • Top priority fixes/buys (if needed)
  • window treatments, needed furnishings, lawn mower/lawn service, and/or stocking the fridge.

#10 Fly Under the Radar     Save Money
Stay off the radar when waiting for a loan to come through (up to the closing). Here’s a few simple ways to stay out of sight:

  • Don’t make any large purchases
  • Don’t apply for any new credit accounts
  • Don’t close any credit accounts
  • Don’t move your money around
  • Don’t skip or miss payments

BONUS TIP:  #11 Ask a Lot of Questions     Questions
Buying a home is a significant purchase that could potentially last you years. So don’t be afraid to ask questions till you become comfortable with the answer. And don’t feel like you’re ever bugging your real estate agent, that’s what they earn commission for – to be there for YOU!


Courtesy of Blue Water Mortgage Corporation

Author: Ivy Cowgill, VIP Realty Group, Inc.

"You enjoy the sunsets, let me take care of the details..." Ivy Cowgill is a licensed Florida Realtor® who is passionate about helping you achieve the SW Florida lifestyle of your dreams. Ivy grew up in the Des Moines, Iowa area and is a graduate of Iowa State University and Jones International University; spending the first half of her professional career as a corporate woman focused on providing exceptional customer service in the training arena. Ivy is also a certified Interior Designer, home staging expert, has been in the property management business for 19+ years, and a member of the National Association of Professional Women, The National Association of Realtors, and the Royal Palm Coast Realtor Association. After spending approximately a year looking for her own forever home in SW Florida and meeting challenge after challenge, Ivy decided to reinvent herself and become a Realtor® in order to help her clients experience a seamless process with exceptional customer service wrapped in an informative style. “Let me devote myself to the details so that you don’t have to in your pursuit of living your dream in sunny paradise!”

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