Biggest mistakes first time home buyer's make!

The Common Mistake:

People wait too long to start the home buying process. So, I wish there was a different word for application because it implies if you apply you have to go with this or it’s going to expire soon. So, people wait to apply until they’re buying a house the next day. So, then they don’t have time. These delays can cause missed opportunities and stress.

The Power of Time in the Process:

Time is the biggest asset you can have or the biggest thing on your side. So smart people will go through an application like, "I want to get pre-approved," but then a good loan officer will tell them, "You’re pre-approved, but do these couple things," so when you go to buy, you know, let’s say your credit score was a 739 and we get it one point to a 740. Sometimes that’s like the easiest thing in the world to do. And if you have time, that’s like an eighth of a percent in rate. So now you’ll save $20 a month for however long you have that mortgage because you just waited. By starting early, you give yourself the advantage of making informed decisions.

Underestimating the Speed of the Process:

But people underestimate how fast the process goes and how serious they are about buying. Because they’ll come in and say, "Yeah, we’re just kind of looking, you know, me and the wife, we’re thinking about buying a house and probably in the next 6 months or so we’ll probably buy. But, you know, I’ll let you know when we’re ready." And then, like, the next day they’re like, "We want to put an offer in on this house and it has to close in 15 days. Can you get the loan done?" I’m like, "Thought you were just looking?!" This sudden urgency creates unnecessary stress and complications.

The Emotional Aspect of Buying a Home:

They don’t think it’s emotional. They go into it thinking it’s a financial transaction. It’s not! It has financial implications, big financial implications, but it’s an emotional transaction. You won’t buy a house because you’re like, "Man, the PMI on this one is going to be like $10 less. That’s our sweet spot. Let’s make it happen." You’ll buy it because you’re like, "I can see us raising our family here" and your wife will love the kitchen and your dog will love the backyard. Like that’s why you’ll buy the house. The emotional connection to a home drives the decision-making process.

The Importance of Timing and Planning:

So, people go into it with this mindset of, like, it’s a finance transaction and they have rigid timelines they can follow because it’s their finances. But it’s not like it’s going to go from "We’re thinking about buying a house" to "We have to buy this house" like and sometimes it’s literally 24 hours later. But people don’t give themselves enough time to do it right because they think they have more time than they actually will want to have. Timing and planning are key to a smooth and successful home buying experience.