Home Buyer Stress: How To Handle It
Heritage Home Loans
Heritage Home Loans Spokane, WA
Published on May 18, 2017

Home Buyer Stress: How To Handle It

I am not sure “home buyer stress” is an actual medical condition, but it does seem to affect a lot of people going through the process of buying a home.

In reality, you could be in a constant state of stress and worry for the entire home buying process. That isn’t necessary. Here are some of the spots that cause the most “home buyer stress” and how to deal with them.

During Your Pre-Approval

During the pre-approval process, you will disclose a lot of personal and financial information to the lender. It some cases it can feel like an interrogation. You will be, asked to show the lender your bank statements tax information and pay stubs. There could be more items depending on your situation. I had one client say they felt like they were “exposing themselves naked” during a pre-approval. It can definitely seem like that. What you need to remember is that you are asking a lender to borrow a lot of money in order to purchase a home.

How to handle the stress:

First of all, keep in mind how much money you are asking to borrow from the lender. Secondly, remember the loan officer is on your side. However, they are at the mercy of the company they work for and the guidelines for the loan program you are using for financing. Each program has specific guidelines that need to be followed in order to close the loan.

Don’t Make This Mistake:

Be sure to answer all questions from your lender as truthfully and accurately as possible. It is always best to deal with everything up front that to have surprises once you are under contract on a home. This is one of the reasons lenders require so much paperwork. One of our main tasks is to verify all of the information given on a loan application. The majority of issued can be dealt with by your lender if you let them know everything ahead of time.

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When You Make an Offer

You have found the home of your dreams and are now ready to make an offer. This has been especially stressful lately with the competitiveness in the housing market. If you are on a time crunch to purchase a home, it can be even more stressful. The stress comes from the love for the home you are offering on and wondering if the sellers will accept your offer.

How to Handle The Stress:

The best way to handle “home buyer stress” in this situation is to always put your best foot forward when making an offer. Your Realtor will have a good understanding of the market and will give you the best advice they can in terms of your offer. It is always best to trust the advice of a professional.

Don’t Make This Mistake:

In a competitive market chances are you won’t be able to low ball any of your offers. In a seller’s market, the sellers will typically have their choice of who buys the home they are selling. If a home has just come on the market, you will most likely have to offer full price and in some cases even more. As homes stay on the market longer things change.

 

Inspection

You now have an offer accepted and are in the inspection phase of the home buying process. Your inspector will do a complete investigation of the home. In most cases, they will find items that are wrong with it. Some will be minor and others could be major issues that could prevent you from buying the home

How to Handle the Stress:

It is important to remember that the home inspector’s job is to give you a detailed report of the home’s issues. It is 100% to your benefit to know as much about the home as you can before signing your closing documents.

Don’t Make This Mistake:

The biggest mistake you can make is not attending your home inspection. When you attend a home inspection your inspector can show you in person where some of the trouble areas are. You will be able to ask questions about them. If you aren’t able to attend the inspection you will probably be using the information in the inspection report.

 

Appraisal

The appraisal is done by a third party the lender uses to determine the home’s value and condition to meet your loan programs guidelines. As a buyer, you will get a report that says what the home’s value is and if there are any repairs required in order to close the loan.

“Home buyer stress” usually comes from the amount of time an appraisal takes. If there are delays with the appraisal it can cause delays in your closing date. You may also have delays if the report comes back with repair requirements.

How to Handle the Stress:

The appraisal is largely out of anyone’s control. As a buyer, you and your Realtor should discuss the home’s value when making an offer. If you are concerned that the appraisal won’t come in at value have your Realtor pull a list of “comps” for reassurance. In terms of the repair requirements. They will need to be done prior to closing in most cases. If it takes the sellers an extended amount of time to make the repairs your closing may be delayed.

Don’t Make This Mistake:

You don’t have much say in how the appraisal turns out. Since that is the case there isn’t much sense in losing sleep over it until you get the results. If there are issues with the appraisal work quickly with your Realtor to fix them.

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Underwriting

The underwriter has the final say on whether or not your loan will close. The loan officer’s primary job is to make sure your file will get approved by an underwriter. Mistakes by the loan officer in setting up the files or by the borrower in disclosing information can create challenges for loan approval.

How To Handle the Stress:

At this point, you and your loan officer should have gone over all of the information needed to create a final loan approval. As I said in the pre-approval process, everything in your credit, financial and employment history will come out. Be sure to address any potential issues up front. If you do this and your lender has done their job. Underwriting should be a breeze.

Don’t Make This Mistake:

In some cases, the underwriter may want to see some more paperwork. By this point in the process, you probably think you have given everything you can give to your lender. You are close to the finish line. Be sure to keep your end goal of getting the keys to your new home in mind. Make sure you get the paperwork to your lender quickly to avoid any delays in closing.

For a smooth and stress-free process, it is important to have people you trust on your side. Home buying should be an exciting and fun time in your life!

Heritage Home Loans
Heritage Home Loans Spokane, WA
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(509) 991-3493