So you’re thinking about buying a home in Southern California, or elsewhere in the United States; this is a great decision to make but before you get started with the home buying process make sure you’re ready for the top home buyer obstacles so you know how to overcome them.
Obstacle #1 – Your Income or Deposit Cannot Be Sourced
Although you may have saved 20% for a down payment on a home the reality is that if you cannot provide proper documentation for your income and deposit you will face scrutiny from your lender. Since the collapse of the Real Estate market in 2008 lenders have new requirements and now want to know everything about a buyer financially where their cash deposits are coming from.
Are you a freelancer and are doing multiple side jobs? Have you revived a down payment gift from your parents or relatives? Be prepared to document where these deposits are coming from because a lender will want to have confidence that you will still be able to pay your regular monthly bills and mortgage.
Obstacle #2 – You Can’t Compete Against Other Buyers
Over the last two years it hasn’t been uncommon to have multiple buyers submitting offers on homes for sale in Southern California thanks to great home prices and low mortgage interest rates.
Yes the Real Estate market may be competitive now but you can compete against multiple offers from other buyers by first choosing a lender who can close the transaction within 30 days or less and you should also try to come up with 20% for a down payment because this will strengthen your position as a buyer especially if the home price is lower than comparable properties.
It’s also important to remember that you can compete against other buyers if you are willing to write a letter to the seller and possibly drop some of your contingencies.
Obstacle #3 – You Have Unrealistic Price Expectations
Last of all, but most important, regardless if you plan on buying a home in Southern California or elsewhere in the United States you must make sure that you have realistic price expectations about what you’re looking for in a home because every Real Estate market will have homes priced differently than others.
Know what to expect when it comes to home prices by doing some online research on Real Estate websites or speak with your agent about local Real Estate prices before going out to view homes.
Contact Fred Sed Realty
Learn more about the Real Estate market in Southern California by calling Fred Sed Realty today by calling us at (800) 921-9231 or connect with us online.