Home Buying in Tucson>Question Details

Trulia Tucson, Other/Just Looking in Tucson, AZ

Which problems do homebuyers commonly cause for themselves?

Asked by Trulia Tucson, Tucson, AZ Tue May 14, 2013

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Buyers sometimes forget a critical components that will come in really handy during their home buying process. Have professionals on your side! A buyer's agent is crucial, since you will be working with the listing agent if you call them from their sign. Today's contracts and negotiations are complex, so even if you find your next home on line, you will want someone who knows about the details to help you buy right. Next, please ask the Realtor you trust as your buyer's agent to recommend some excellent lenders. Starting the buying process without being prequalified is a waste of your valuable time.

Kat Tyree, Associate Broker and Buyer's Agent
520-730-5540
TucsonKat@gmail.com
My website is yours for the searching! http://www.Kat.LongRealty.com
1 vote Thank Flag Link Thu May 23, 2013
There have been some terrific responses below that add to the community for everyone! Most importantly, we can learn from one another to build our community and help buyer and seller make the process as easy as possible, extract value, and build relationships together.
0 votes Thank Flag Link Wed May 29, 2013
In our area right now it is thinking that they can still get a really cheap home. Home prices have gone up. We have a lot of snow birds. Many waited too long to get the prices that they could have about two years ago. What they thought they were going to be able to afford, they can't. And the other biggest issue is not having proper financing in place.

Tammy Hayes, Realtor
RE/MAX Palm Realty
tammyhayesre@gmail.com
http://www.tammyhayes.remax-florida.com/
0 votes Thank Flag Link Sun May 26, 2013
Many buyers begin their house hunt before qualifying for a loan. I can't fault a buyer for that. Before I was a real estate agent, I was riding my bike around Colonia Solana going to open houses. That's how I met the real estate agent who eventually helped me buy my house. I could afford a $60,000 house. I had been looking at $200,000 to $300,000 houses. I know from experience that once you've imagined yourself living in a house that costs four times your budget, it's hard to reel your expectations back in to realty.

Another mistake is to think this is a buyer's market. In the lower price ranges, low ball offers will not be taken seriously.

Remember to check the cost of utilities, and leave some room in your budget for unexpected repairs. If your rent is currently $800 including water, and you had trouble saving the money for your down payment, don't buy a house with a $1,200 mortgage payment.

When your loan officer says she needs your most recent paystubs and bank statements, that is not a suggestion, it's a requirement. You need to provide these documents promptly or close of escrow may be delayed. If the seller doesn't want to extend close of escrow because you held up loan processing, he doesn't have to.

Do not incur any new debt until after the deed records in your name! While waiting for close of escrow, some buyers decide their old furniture won't look good in their new house, so they go on a shopping spree and charge it to their credit card. Your loan officer should warn you not to change your credit situation and certainly don't quit your job, because your credit report will be refreshed and your employment will be verified just before close of escrow. Would-be buyers have disqualified themselves from getting a mortgage by changing their credit situation before close of escrow. Even moving money between accounts or depositing undocumented funds into your accounts can be a red flag. Don't change a thing.

If you are getting a gift from a relative for your down payment, your loan officer will need to know this and have the donor sign a gift letter. Check with your bank a few weeks before close of escrow to make sure the gift funds will be in the bank long enough for the bank to release the funds when you need them. Even though your gift check will clear in one day, your bank may have a policy of holding it for seven to 10 days so they can make some interest on it. If you are gong to wire the funds to the escrow company, find out how many days in advance you need to order the wire to get it to the escrow company when they need it.

Have the utilities put in your name effective on the close of escrow or earlier if the seller has them turned off before close of escrow. According to the Arizona Association of Realtors purchase contract, the seller is supposed to leave the utilities on through close of escrow, but some seller don't know this or don't care. If the gas gets shut off, SW Gas must come and inspect all the gas appliances and inspect the gas line for leaks. If any gas appliance is not up to code, the appliance must be repaired and all leaks must be fixed before the gas will be turned on. These repairs will be the buyer's responsibility, and may delay your move-in by a week or more. Getting electricity and water turned back on once they are off is not as difficult, but can still take several days.

Qualified loan officers, escrow officers and real estate agents have seen all these problems before and can help you navigate the home purchase mine field.

Donna Moulton
Associate Broker
Tierra Antigua Realty
http://www.SweetDesertHome.com
0 votes Thank Flag Link Sun May 26, 2013
Tom, you are wise beyond your years. These are all good suggestions.
0 votes Thank Flag Link Wed May 15, 2013
Tom, you are wise beyond your years. These are all good suggestions.
0 votes Thank Flag Link Wed May 15, 2013
Tom, you are wise beyond your years. These are all good suggestions.
0 votes Thank Flag Link Wed May 15, 2013
I agree with the answers below and would like to add one challenge I see from my perspective as a lender.

Loan qualifying is based on general formulas and when applied to specific situations do not always provide the best solution for a consumer. For example, lenders use Gross income for calculations and, of course, buyers use Net income for paying the bills.

Especially with first time home buyers, I see people trying hard to qualify without consideration of a plan for how they will manage the payments over a longer period. Some loan programs do not require the borrower to have any money left in the bank after a transaction. Obviously this does not leave any safety net. A borrower can offset some risk with a home warranty plan, but are they prepared for an unexpected auto issue or reduction in hours.

My team promotes the concept of "successful homeownership" which goes beyond qualifying and creates a plan for how the buyer will benefit from the financial and stability aspects of owning a home while maintaining their quality of life.

Ultimately, if the buyer qualifies they make the choice. We just remind them to look down the road before agreeing to sign on the dotted line.

Thanks for asking a great question.

Tom

http://www.TheHeathTeam.com
0 votes Thank Flag Link Wed May 15, 2013
Good answers, from good local Tucson, AZ agents. That is the thing, each buyer have their own things they bring to the table, on top of all the other moving parts of a real estate transaction. Working with an agent you like and trust is very important, they can set expectations and go over the buying process here in Tucson, AZ (the Arizona Buyers Advisory covers a lot of good information for potential buyers).

As an experienced agent, I understand that not all clients will buy a home. That is ok, I show homes with this understanding. Sometimes buyers don't like what is available in their price range for example, the inventory of available homes does not change depending on the agent you work with. Working with so many out of state, even out of country buyers it is nice to be able to look at pictures online but nothing can replace putting foot to pavement and viewing homes in person. Once a buyer looks at 10-20 homes in an area, in the same price range, they have a much better idea of what is available in their price range. Some choose to go up in price (if they can) others don't, that is their decision to make. Once a prospective buyer gets pre-approved, finding a local Realtor to start a RELATIONSHIP with is key. I have many buyers I have worked with, for years that end up buying or sometimes decide it is not what they want to do. That is ok too.

I have found, for most buyers, they learn more about what they like and want by seeing properties they don't like. That way, if or when you find "the right one" the buyer is able to recognize it with the knowledge of all the homes they saw that they didn't like.


Best of luck to you.



Spirit Messingham, PLLC
3rd Generation Full-Time Realtor®
Tierra Antigua Realty
Direct (520) 471-6900
Fax (866) 365-5208
SpiritRealty@cox.net
http://www.TierraAntigua.com
0 votes Thank Flag Link Wed May 15, 2013
This questions could cause a lot of consternation. First and foremost, find an agent you trust and LISTEN to him or her! All too often, clients are battling with their own agent. This is suppose to be a symbiotic relationship in which both parties are working together towards a successful conclusion.

With that said, not everybody finds the right fit right away. This is why I advise buyers and sellers alike to speak with, meet, and interview multiple agents until they feel most comfortable. The results of these labors can be quite fruitful.

Have Fun!
Michael
http://www.tucsonrealestateliving.com
0 votes Thank Flag Link Wed May 15, 2013
Great question. I would agree that the number one reason is not really being ready to buy. Be pre-approved, have the down payment saved or arranged by gift, then being able to make the decision when you find a home. in today's tight inventory market. You can't hesitate when you find a home that will work for you. They won't be perfect but if you don't jump on it immediately, it will probably be gone. Next, be patient as you may get beat out of a house you like by a cash / conventional buyer. Last but not least, listen and trust your Realtor to help you along the way.
0 votes Thank Flag Link Tue May 14, 2013
Both previous answers are excellent. Buyers need to be sure what their purchasing power is and have clear expectations as to what they can get for their money. This is where an excellent agent and lender come into play.

I would also add that I've seen more than one deal fall through when a buyer goes out and buys a big ticket item right before closing.

For example a new big screen for that lovely new home they are supposed to close on in a few days. Despite our best efforts to explain the effects of a big purchase on credit scores, every once in a while it does happen, and suddenly the buyer no longer qualifies for their loan.

Just don't do it. Wait until you have your new keys in your hand!
0 votes Thank Flag Link Tue May 14, 2013
The most common problem I have noticed, is the homebuyer is not ready to actually buy a house. My number one suggestion is to go to your bank, credit union, or mortgage broker and get yourself pre-approved for a loan. Do not waste your time by getting "pre-qualified", as you want to know what house value you are approved to buy (based upon your down-payment). Then you will need to provide a LSR (Loan Status Report) when you make your offer on your choice of property. This will ease the process.
0 votes Thank Flag Link Tue May 14, 2013
As per 9 page Arizona purchase contract, we no longer use the LSR in Arizona. All offers need to be accompanied by a signed pre-qualification form. See page two of purchase contract.
Flag Tue May 14, 2013
Working as a buyer's agent with over 100 successful transactions under my belt, I have found that every buyer is different. Each one has their own questions and concerns. I work hard at setting expectations, explaining and educating the client in regards to the entire buying process from obtaining a loan (getting pre-approved) all the way thru signing, and recording. The key is communication. There are many moving parts in a real estate transaction, many of them out of our control, this is where setting expectations and communication is vital to a smooth transaction.

Spirit


Spirit Messingham, PLLC
3rd Generation Full-Time Realtor®
Tierra Antigua Realty
Direct (520) 471-6900
Fax (866) 365-5208
SpiritRealty@cox.net
http://www.TierraAntigua.com
0 votes Thank Flag Link Tue May 14, 2013
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