Buying a house is a stressful process!!
There are so many details, deadlines, and teams of people working together to ensure a sale closes, and it can be overwhelming and frustrating for buyers. I’ve been through this process more times than I can count, and I understand what my buyers are feeling when the closing date is getting closer and the pressure is on.
It helps to know what challenges you might face, and how to deal with them if you do, so I put together this quick list of problems that drive buyers crazy, and how to solve them!
- Lack of Communication from Lenders
Your new home is likely the biggest purchase you’ll EVER make, and you want to know that your lenders are paying attention! One common complaint I hear from buyers is that they don’t get enough communication from lenders. Their closing date is getting closer and closer and they STILL don’t know if everything is in order!
Other buyers express frustration when their lender asks them to send the same document more than once. Resending the same paperwork makes them wonder if their lender is really paying attention…
Solution: First of all, relax! This is not at all unusual. Your lenders are working with lots of clients, and sometimes all the parts don’t come together until the end. If you feel like you’re not getting the updates you need, don’t hesitate to call or email your lender. And if you’re still struggling to get answers, ask your realtor to help you out.
As for being asked to send the same document more than once, just bite the bullet and do it. It’s annoying, but the underwriter holds the key to your loan being approved, and they need what they need, period.
- Insane Insurance Requirements
We all need homeowners insurance, but the types of insurance that are required are determined by where you live. Buyers are often required to purchase flood insurance even when there’s no water in sight, and many of them don’t understand why.
Solution: Sorry, friends, if your lender or insurance company requires flood insurance, you’re going to have to buy it. When you purchase a property, it’s entered into a database – if that database says it’s in a flood zone, or even a semi-flood zone, you’re going to need flood insurance.
It may seem silly (I once had to purchase flood insurance for a 10th floor condo – seriously!), but the only other option is to keep looking for a different property that’s not in a flood zone.
- Over the Top Loan Requirements
Different loan types have different requirements. For example, if you’re purchasing your new home with an FHA loan, you can expect the inspection and appraisal specifics to be very detailed. Even small things like chipped or peeling paint can have a major impact on your loan, and that can make it harder and more frustrating to close on time.
Solution: Do your homework. There are LOTS of loan types out there and it might take a minute to find the one that’s right for you. You have to decide what matters most to you. Do you want a loan that requires less money down? Has a lower interest rate? Won’t make you jump through a million hoops before closing??
Your agent and your lender can help you choose the type of loan that works for you.
Not everything in real estate is negotiable. There are procedures and requirements that are beyond the control of an agent, lender, lawyer, and even the insurance company. What can be controlled are those interpersonal relationships and how we treat each other.
When you have an agent that you trust, the buying process becomes much less stressful. It doesn’t mean you won’t encounter any problems along the way, but you’ll know you have an experienced pro on your side who’s always looking out for your best interests!
