What NOT To Do Before Starting Your Home Search

So it’s time to start looking for a new home. Congrats! Whether it’s your first home or your tenth, there is a level of excitement that accompanies this process. However, especially if it’s your first time, the excitement can lead you to getting the process out of order. Here are some things you should NOT do as you get started on your home buying journey.

• Start looking without knowing your budget

  • Reading this one may seem obvious, but you’d be surprised how many people I speak to who have scrolled through Zillow, found their “dream home”, and are ready to make an offer right away. While I’m happy to show you a property you’re interested in, it’s not in your best interest to look at the home without knowing how much you can spend. My first question anytime someone approaches me about the buying process is always, “How do you plan to pay for this property?” Most people will be financing their home purchase, which leads me to ask them if they’ve spoken to a lender yet. If you’re paying cash, good for you! You still need to know how much you can spend. Getting excited about a property before knowing how much you can spend on it can lead to disappointment and frustration right off the bat. Have this conversation before you start your search so you can have reasonable expectations of what you’re looking for.

• Take on new debt (either before or during your transaction)

  • If you’re starting to look for homes, this is not the time to take on new debt. More deals than anyone cares to count have been ruined by buyers who thought a new car or new furniture would go great with the new home they’re purchasing. Lenders will always take your DTI (debt to income) ratio into account when approving you for financing. If you take on new obligations right before, or even during, your transaction, your DTI ratio will change and could actually disqualify you from purchasing the new home. Keep the main thing the main thing, and don’t take on new debt before your home search.

• Make assumptions about the economy or the real estate market

  • We all know making assumptions about anything is rarely a good idea. There is so little in the economy or the real estate market that you are in control of as an individual; you’re in control of your financial situation and no one else’s. This may sound suspect coming from an agent, but the best time to buy a house is whenever YOU are ready to buy. I always ask clients at the start of each process if they have a firm idea of their WHY: “Why are you wanting/needing to buy a new property?” “Why is this or that feature important to you?” When you have a need or a want in your living situation, you know your budget, and have a clear picture of the home you’re going for, then let’s go find it together.

• Take advice from someone outside the real estate industry

  • Listen, we all have family and friends whose opinions we value. These people usually mean well when sharing their thoughts with us. Most of us have an Uncle Joe who bought his house 30 years ago and “knows” everything there is to know about the process. Regardless of how much we respect these people or how good their intentions are, their opinions and advice aren’t always helpful, and can actually be just the opposite in some cases. Start your home buying process off right by talking to a professional who knows how to analyze the market you’re looking in and can give you advice based on data, not opinions.

• Call anyone but me

The home buying process can be daunting, which is why starting off the right way is crucial. If you have questions about getting started, I’m here to help! Click the image below to download my FREE buyer's guide for Chattanooga.