Sitting around the pool early this week week at the Four Seasons in Las Vegas, my uncle (who has his real estate broker's license in Massachusetts and has owned several multi-unit buildings and homes) surprised me with a comment. He saw talking head and former mega real estate broker Barabara Corcoran on the today show discussing first-time buyer mistakes and thought it was interesting. She suggested the biggest mistake first time buyers make (and some repeat buyers) is looking at homes without knowing what their monthly budget for housing costs is. They should figure out that number and stick to it.
So, Uncle Chuck asked me about the mistakes we see. Barbara is right. My partner Bob and I see many clients making assumptions of what they can afford (or more often, what a bank will lend them) while looking at homes. In many instances, they can not borrow an amount in the price-point they are looking in for any number of reasons: Sometimes it's debt ratio, sometimes it's income and sometimes it's credit history. We advise our clients consult with a trusted mortgage adviser if they will need a loan (be it a mortgage banker or mortgage broker) prior to viewing homes. Click the link to consult with one of our long time business associates.
The main reason for this is we want our clients comfortable and happy with their home purchase. We need to know the numbers so we are showing them viable options. It will also help us find deals below their means when those opportunities present themselves.
Now, I like Barbara good enough all right...but don't take your local real estate advise from a talking head on The Today Show who predicted that 2007 was the bottom of the market and that the worst was behind us. However, be like Uncle Chuck. When you hear something about real estate on TV bring the question to your Realtors; us.