To help you avoid some common pitfalls in buying your next home, I thought I’d share a quick list of common misconceptions we often hear from people looking to buy a home in the Boston area.
Myth #1: I have a preapproval letter so there should be no problem approving my loan. A preapproval letter means that the lender believes they will be able to approve a loan, based on a cursory review of your financial and credit information. There are several additional steps to get through before they issue you an approval for the particular home that you decide to buy. We’d be glad to connect you with an experienced lender who can walk you through what’s involved and help ensure this process goes smoothly.
One important tip to keep in mind when you’re looking to buy a home: Lenders recheck your employment and credit rating approximately three days before your closing. Before you buy a new car, apply for a new credit card, or switch jobs, talk with your lender about the implications this may have on your mortgage approval.
Myth #2: I’ll have to pay a fee to have a buyer’s agent. This is usually not the case here in the Boston area. You are entitled to buyer representation, and typically do not have to pay anything for this, since the full commission on the home sale is paid by the home seller.
Myth #3: I’ll get a better price on the home if I don’t use a buyer’s agent. The seller has a contract with the listing agent to pay a certain commission rate. The full commission is due to the listing agent’s office, regardless of whether you have representation from a buyer’s agent or not.
Myth #4: I can buy a new home with a home sale contingency. This is not always an option. In a hot seller’s market like we’re experiencing in the Boston area, this is very tough to do. You will be in a much stronger position if you’ve either already sold your home before buying a new one, or you can qualify for a mortgage without selling your current home. The timing of this can be tricky. If you have questions or concerns about the process, please don’t hesitate to give me a call.
Myth #5: The seller has to remedy any issues that our home inspector uncovers. It depends on the terms of the offer to purchase that you and the home seller signed. Typically sellers agree that you can have a window of time (7-10 days) to have a home inspection done. Once the inspection is done, you have the option to withdraw from the purchase, go forward with the home as-is, or ask the seller to remedy some inspection items. The seller may agree to either provide a credit for you to take care of the repairs after the closing or repair the items themselves before closing.
If you’re considering buying a home in the Boston area, please contact us. We’d be glad to walk you through the process & help ensure that buying your new home is a positive experience!