When buying your first home, there’s a lot that can go wrong. Sometimes, crap hits the fan and you’re stuck between a rock and a hard place. Well, David received an email from a How to Buy a Home listener who really went through the ringer during the home buying process because they didn’t have the right team and weren’t properly prepared for the process. David takes this opportunity to illuminate what to do and what NOT to do when buying a home as well as how to handle the situation if it all goes wrong.
Here are some topics from today’s conversation:
- What to specifically do when buying a home
- What NOT to do when buying a home
- How to handle it when the process goes awry
- Why having the right team and education is vital
[01:10] Here’s the Deal
David got an email from a How to Buy a Home listener that had a very bad home-buying experience. She was very close to buying her first home, but then the home inspection revealed some very serious issues with the foundation, causing her to back out of the deal and costing her her earnest money deposit. Also, her lease deadline was coming up quickly and meant she either needed a place to stay or rent for another year. The biggest problem here? Her team didn’t properly guide her through the process. Then, her lender let her down by wrongly advising her that her employment status would not negatively affect her credit score. This whole experience meant she lost another $2,500 after losing her deposit. Overall, this situation SUCKED.
[03:37] What To Do (and NOT Do)
There are a few mistakes in this situation that David can hash out: first, instead of allowing a lease deadline to restrict your ability to find a home, see if there is a month-to-month option that will allow you some more flexibility. If you have a lease, the preparation that you and your team do before even thinking about looking at homes is WAY more important than anything else. Also, never assume that a 30-day close date is actually going to be a 30-day close – always give yourself some wiggle room. Here are some things to NOT do: don’t just partner with any realtor and rush to get a home because of your lease. Take the time to make sure you’re getting into the right deal. Also, make sure you are getting a quality lender, not just an online lender that sees you as just a number. When you work with a unicorn lender, they are prioritizing you, not just the amount of leads they get.
[10:16] A Happy Ending
The coolest thing about this listener is that they are willing to do whatever it takes to buy their first home. While she knows it might be tough, especially considering her past experience, she knows that owning a home is better than paying rent for the rest of her life. This is the best attitude to have when buying a home. You have to WANT it and be willing to learn whatever you can and do whatever you need to make sure that you’re on the right track.