Buying homes for sale in South Lake Tahoe is exciting, but also overwhelming as there is a learning curve that comes with it if you are a first timer. If you are new to the process, you may not realize that there are mistakes you can make that can heavily impact your buying power. If you are getting ready to embark on this new venture OR you are in the beginning stages, be sure to read the below things to avoid when buying real estate this spring and summer.
Mistake #1: Don’t wait to get pre-approved
Pre-approved and pre-qualified are two very different things. Pre-approved lets you know how much your loan is actually for. Pre-qualified is simply an estimate. Being pre-approved shows sellers that you are serious about buying homes for sale in South Lake Tahoe. Having this step done first usually moves your offer to the top of the pile and speeds along the process. Ask your South Lake Tahoe Realtor for a recommendation when it comes to a mortgage lender.
Mistake #2: Shopping over budget
This is another perk to getting pre-approved: You know how much you can afford. This helps avoid getting attached to a home you can’t afford and it means you aren’t wasting your time, your South Lake Tahoe Realtor’s time and the seller’s time.
Mistake #3: Making a lowball offer
South Lake Tahoe real estate is right on the cusp of a balanced market, which means low balling is a risky move. This, truthfully, isn’t even recommended in a buyer’s market. The logic behind it makes sense if sellers are desperate to move their South Lake Tahoe real estate fast. You hope that if you make a lowball offer, they will counter and then you will counter and then end up getting the home for a price both parties find agreeable. If you low ball on South Lake Tahoe real estate that is priced at fair market value, the chances are high that your offer won’t even be looked at and/or you offend the seller. Of course, when you work with a qualified South Lake Tahoe Realtor, you can rest assured that the offer price they advise you to make will be a good one.
Mistake #4: Purchasing something BIG while in escrow
This is not the time to finance something shiny and new. Had your eye on a new car, a boat, a motor home, a new credit card or anything that will pull your credit and change your debt to income ratio can negatively impact your funding. The lender’s under-writer will re-check your credit report right before close to confirm you can still qualify for the loan. Making a big purchase could cause your financing to fall through or change last second.
Mistake #5: Not saving for the closing costs
You must set aside money to cover the closing costs if you are expected to help cover this expense. If you don’t, you may not make it to signing and could even lose your earnest money deposit. Be sure to read the estimate from your mortgage lender on what the costs will be before making offers on homes for sale in South Lake Tahoe. This is something that is legally required but some buyers don’t read it. Usually, this cost ranges from 2% to 7% of the purchase price. While the sellers and the buyers generally split the closing costs, the buyers usually cover a bigger chunk so be sure to save enough to cover your portion.
If you are ready to look at South Lake Tahoe homes for sale, give me a call. As a qualified South Lake Tahoe Realtor, I would be happy to assist you with the process!