What NEVER to Do Before Buying a Home

Buying a home for the first time can be confusing. That’s why the tips and strategies you’ll find in this 8-week series will set you on the right path. It’s my own unique approach and a “behind the scenes” glimpse of what you should look out for and consider when starting your own search for a home. Did you know that some normal — even harmless everyday activities — could hurt your chances of buying your dream home?  You want to avoid any slip-ups that might make your lender think twice about processing your mortgage loan. Here are seven things that you should “never, ever, ever, ever” do during the time you are searching for a home: 1. NEVER Change Jobs Stability is key when seeking approval from lenders, so the months leading up to your home purchase is not a good time to seek other employment or start up any new endeavors. While enhancing your career and moving up is important financially, you should wait until after you’ve moved in, or at least signed the final documents, to switch jobs or pursue any entrepreneurial interests. Remember, lenders don’t want to take risks and are looking to loan money to someone who they know can pay it back. Leaving your current job can be a red flag to them! 2. NEVER Pay-Off Creditors (without checking with your lender first) Sounds counterintuitive, but it’s not.  Certain loans require you to have certain “reserves” in the bank to qualify.  So, you might actually do more harm than good if you pay off your credit cards, student loans or any other debt you have.  Check with your lender first before you pay anything off.  Having debt is not always a bad thing and may not be as big of an obstacle to your owning a home as you think. So don’t pay it off unless your lender tells you to do so. 3. NEVER Make Major Purchases One of the fun things about buying a new home is all the other new stuff that comes with it. Often, people want new furniture, appliances, and the list goes on and on! Most major purchases today require credit, and that means you don’t want to have a large number of inquiries on your report during the loan process. Plus you don’t want to have a higher debt-to-income ratio than necessary before you close on a home. Your best bet is to hold off on buying anything major until you have completely finished the mortgage process and you’ve moved in. That new car can wait! 4. NEVER Have Late Payments You should always make payments on time whether you’re planning on buying a home or not.  However, in the months leading up to your looking for a home, you want to be especially careful not to be late on car payments, insurance premiums, credit cards, even parking tickets! This could derail the approval of your mortgage or increase your interest rate. 5. NEVER Accept Out of Ordinary Bank Deposits Lenders prefer to see proof that the bulk of your down payment fund has been in your account for at least two months — also known as “seasoning.” As stated before, stability is key, so you don’t want it to like look money suddenly moved into your account out of nowhere. This looks suspicious and may signify that you may be depending on family members or others for your down payment. (There is a way to get a loan or gift from family though!) The lender wants to know that you can afford and maintain a mortgage. 6. NEVER Agree to Co-sign Your home buying process is not the time to co-sign anything!  Even though you’re not the one making the payments, and no matter how much you trust your beneficiary, co-signing a loan, no matter how small, increases your debt-to-income ratio. And a default on the part of the borrower can jeopardize your entire loan process. 7. NEVER Have A Change in Your Assets Don’t forget that you’re already making a major investment — buying your new home! It’s not the time for other investments even if the stock market is bullish. Other investments would deplete your liquid assets that you need to make lenders comfortable, so you’re better off waiting until you’ve officially bought your new house. Next week in Secrets for Buying a Home in the DMV, we’ll be talking about all the Red Flags to watch out for along the way to your dream home. Stay tuned!

How to Go with the Flow of the Market - Tactics for Buyers

Buying a home for the first time can be confusing. That’s why the tips and strategies you’ll find in my 8-week series will set you on the right path. It’s my own unique approach and a “behind the scenes” glimpse of what you should look out for and consider when starting your own search for a home. Buying a home in the DMV requires an understanding of not only the seasonal shifts in market activity but also the weekly flow of the market.   You’ll need to understand that there are two cycles – both a yearly one and weekly one when looking at homes. And you’ll need to be prepared and know what to expect for each one.  One simple way to explain these cycles is with a surfing metaphor: It’s like knowing the best time of day to catch the best waves or whether to wear a wetsuit at certain times of the year.   Same concept for buying!  Just like a surfer hitting the waves, you start to know what to expect and know what time you need to be out there to get the best outcome.  It’s a huge lesson for buyers to know that they’ll need to adapt and be flexible. Go With The Flow I can’t emphasize enough that you’ll be a successful and less stressed buyer if you know how to respond to the cyclical flow of the market — both seasonal and weekly.  My secret tips below will help you understand why timing can affect how you go about looking for a home: The Weekly Inventory Cycle  Homes tend to come on the market Thursday and Fridays. As the weekend approaches buyers have time to devote to their home search.  Makes sense! That means you have to get organized Friday afternoon or evening to know what homes you are going to see Saturday and/or Sunday. (Your Friday nights will never be the same!) Depending on the neighborhood you are looking in, homes will either go for “speed” or go for “the money.”   What that means is, depending on where you are looking, sellers either tend to take offers quickly OR they set deadlines after the weekend to give as many buyers a chance to see their home, hoping to get multiple offers and drive the price up.    If you see a home you like online, reach out to your agent and flag the listing so your agent can reach out to the seller’s agent to see if you need to rush out to see it and go for speed, or if you can take your time and have a set deadline, typically for early the following week.   There are exceptions to this rule, but typically, this is how the weekly cycle of new listings works.  Keep in mind that the inventory of homes for sale changes weekly, and depending on the time of year it can be drastic. So once you decide to seriously buy a home, you really need to be out there looking every weekend you can in order to see what has come on the market each and every week. And again, have a strategy in place for “speed” or “the money.” The Yearly Inventory Cycle Here’s a breakdown of what to expect during the year: • Inventory (the number of homes on the market) in the DMV has a yearly cycle that looks like a bell curve with the low periods in January and December, and the height of the inventory peaking April through June.  • Suburban homes follow the school calendar and tend to become available in April/May/June. Not as many suburban homes come on the market at other times during the year.  • The overall market slows down in July and August but picks up right after Labor Day. What’s this all mean for you?   Go with the flow!  If you are starting your search in December, January or August, be prepared that there won’t be that many homes to see.  If you can be patient and wait it out until March, April, May or June, you’ll have plenty to choose from.    That’s why you don’t want to get frustrated or give up on your dream to own a home if it’s simply timing that’s not on your side.   There are exceptions to every rule, so if you want to know what to expect for your own home search, get in touch and I’ll help you through it all. It’s not one-size-fits-all and there are not hard rules, just trends to keep in mind.   Let me know what you are looking for and where you would like to live. We can get you started on your search and help you fine-tune it to your needs and budget. That way you’ll know what to expect and avoid any anxiety about your search.   “Chilllllll” and ride the wave of the DMV market! Let me show you how.     Next up in my Secrets for Buying a Home in the DMV series is a must-read – What NEVER to Do Before Buying a Home. These tips will save you a lot of grief!  

Just for YOU – Secrets for Buying a Home in the DMV

Exclusive 8 week series I am excited to bring you this series — My Secrets for Buying a Home – featuring little-known tips and strategies that you can’t get anywhere else.  I created these secrets through trial and error helping buyers over the years.  I’ve tested everything that works and weeded out what doesn’t. It’s all here in one place for you! Buying a home can be confusing and even intimidating at times. That’s why it’s perfectly okay to find yourself outside of your comfort zone. My goal with this series is to make you more comfortable and that starts with making you a more confident and knowledgeable homebuyer … with an insider’s edge. The eight articles in this series will uncover “the why’s, the how’s, and the must-do’s” of home buying. You’ll better understand yourself and the journey you’re about to take. So when the time comes, you’ll be fully prepared (and confident) to make an offer on a home. These topics are like the “back story” or a first glimpse of the “behind the scenes” of buying a home. They are a good overview about things you should think about and consider before you begin a serious search for a home. Everyone needs to prep themselves before embarking on something new, right? By reading these articles, you’ll become a more attuned buyer who understands that buying a home doesn’t have to be stressful or full of regret.  (I’ve got other series that will be more detailed about mortgages, budgeting, and each and every step you’ll need to take up till closing.) Let’s get started with a rundown of each article for our series: Go With the Flow of the Market:  Just like riding a wave in the ocean, you’ve got to learn about that natural ebbs and flows of the market and what to expect when.  Buying a home requires an understanding of not only the seasonal shifts in market activity but also the weekly flow of the market.  You need to change tactics depending on the season and I’ll break it all down for you and tell you exactly when the tide is coming in. What NEVER to Do Before Buying a Home:  Did you know that some normal — even harmless everyday activities — could hurt your chances of buying your dream home?  I’ll tell you exactly how you can avoid common slip-ups that might take you out of the homeownership game.  Red Flags to Avoid When Buying a Home: No home is perfect, butour list of hidden red flags could save you in the long run.  You might be surprised by what to look out for before you make an offer. I’ll explain how to know the difference between a red flag and when to waive the white flag in surrender and move on to another, better home. 4 Little Known House Hunting Tips: Many buyers think looking at homes is much more fun than dealing with their mortgage company. And we agree! But even though you’ll feel like you’re house hunter on an episode of HGTV, it’s still time to be strategic. I’ll tell you about two little-known things you should do, and two things you shouldn’t do when house hunting. Our Buyers’ Most Frequent Questions Answered: The questions swirling around in your mind are likely the same ones that every buyer wants to ask too. You want to make sure you don’t do something wrong, right? Or, you might worry that you don’t know what you don’t know?  I provide answers to some of the most common questions we get AND you’ll become better informed and more reassured. Is the “Paradox of Choice” Derailing Your Home Search: As a buyer you might find yourself “wanting to see everything” in your price range or needing to look at “just one more” house or condo? I use the secrets in this book every day with clients and can’t wait to share them with you!  More is not always better! How to Buy a Home Even with Student Loan Debt: You’ll be surprised at how you can still buy a home despite having what feels like crushing amounts of student loan debt.  There are even some great loan programs for people in certain industries, like doctors, that have ultra-high amounts of debt.  “Can’t stop, won’t stop” is my motto when it comes to student loans being in the way of you becoming a homeowner.  Buying a Home Is Like Falling in Love: I always say, buying a home is like finding a mate — you’ve got to know your must-haves and your deal breakers.  And, did you know that sometimes you have to get your heart broken by losing out of a property before you can get serious about buying? Sometimes that “first breakup” makes you stronger and wiser. Here’s how you can make the most of your journey in finding a home you love … and will eventually buy.