The entire homebuying process can take a long time. Imagine all the homes you have to look at before you find “the one.” Even after you’ve negotiated a deal and your offer is accepted, there’s still the escrow period to have to go through, which can be a lengthy process itself.

Many things can happen during this time that can delay closing, which can be incredibly frustrating for both you and the seller. That said, there are things you can do on your part to ensure there are no hiccups along the way so you can close the deal and finally get the keys to your new abode.

1. Get Pre-Approved For a Mortgage

Sellers usually want to see that buyers are already pre-approved for a home loan before they even accept an offer. Before you even make an offer, make sure you get a mortgage pre-approval.

Getting pre-approved for a mortgage will not only help you find out what you can afford and show sellers that you are a serious buyer, it will also help you get your home loan application finalized faster compared to those who haven’t been pre-approved.

2. Be Cautious With Your Spending and Borrowing

Now is not the time to be making large purchases on credit. Once the mortgage approval process has started, you’d be well advised to keep your spending under wraps for the time being. Your lender is basing your mortgage approval on the information you’ve already provided, including the amount of debt that you currently carry.

If you add more debt to the books, your lender may have to backtrack the process, which can cause a delay in closing and possibly even result in a rejected application. Wait until after the deal closes to make any large purchases on credit.

3. Gather All Necessary Documents

You’re going to have to submit a number of documents before financing is approved. You’d be doing yourself a favor by getting all the necessary paperwork together even before you start looking for a home. While some documents may be quick and easy to obtain, others can take some time. Gather information such as your tax returns, pay stubs, bank statement, and a letter of employment.

The better prepared you are with this documentation, the faster your mortgage can get approved and processed. Your mortgage specialist will tell you what documents you will need before you even start the procedure. Many times closings get delayed simply because all the necessary information isn’t available if the buyer failed to submit it all in a timely fashion.

4. Understand All Documents That May Have to Be Signed

When buying a home, there will be a slew of documents that you will have to sign. You should take some time to get acquainted with this paperwork so you know what you’re signing.

Your real estate agent will be able to fill you in on the exact documents that you can expect to sign in your particular transaction, such as the loan documents, deed, title transfer documents, disclosures, affidavits, and so forth. Just be prepared to put your John Hancock on a lot of paperwork, as real estate transactions cover a lot of legal ground. Knowing what you’re signing can help avoid any unnecessary delays caused by confusion over the documentation associated with closing.

5. Ensure That You Have Enough Money to Cover All Closing Costs

The purchase price itself is a pretty hefty amount, but your expenditures regarding a home purchase don’t end there. You’ll be expected to dish out more money to cover all the closing costs associated with your transaction, such as loan origination fees, appraisals, title search fees, title insurance fees, underwriting fees, surveys, and so forth.

Generally speaking, buyers pay anywhere between 2% to 5% of the purchase price of their homes in closing costs. Clearly, that number can really add up, and you’ll want to make sure that you’ve accounted for these costs before the deal closes. Once you have an idea of how much you could be spending before the deal goes through, do your best to have this money easily accessible before closing day comes. If not, escrow may be delayed as you scramble to get access to the funds needed to cover your closing fees.

6. Schedule Your Final Walk-Through Appropriately

Buyers have the right to visit the property right before closing to make sure that it is in the same condition that it was in before they agreed to purchase it. If any damage has been done to the home or any fixtures have been removed, you can argue that before the seller is off the hook.

It’s a good idea to pencil in this final walk-through close enough to closing that it gives the sellers less time to make any changes, but far enough in advance to give you plenty of time to conduct a thorough inspection of the property and make any necessary complaints.

The Bottom Line

Nobody wants to experience a delay in closing. It’s costly, it’s time-consuming, and it’s downright frustrating. Having said that, there are a number of things that buyers can do to avoid any unnecessary delays in the closing process. Your real estate agent will have plenty of suggestions for you to ensure a streamlined escrow process, so be sure to heed this advice to stay on track to a quick closing.

One of the more important factors that lenders look at when assessing whether or not to approve you for a mortgage is your credit score. This important little number plays a key role in your mortgage application, and several things affect it, including various loan debt.

Depending on how you manage your loans, they can either make or break your credit score. Before you set out to apply for a mortgage, it’s helpful to look at how your existing loan debt impacts your rating.

Here are some of the more common consumer loans that play a key role in determining your credit score, and therefore your ability to secure a mortgage.

Student Loans

Among all household debt in the U.S., student loan debt is rising very quickly. In fact, more Americans are taking out student loans today, and they’re borrowing a higher amount as a result of skyrocketing tuition fees. Student loan debt is almost three times what it was a decade ago, and has reached the $1.3 million mark.

All that debt is possibly putting a damper on obtaining homeownership status. About one-third of Americans in their 20s owned a home in 2007, but that number has significantly dropped down to 21% as of 2016. If anything, student debt can at least explain a big part of this decline.

People with plenty of student debt will certainly be examined by mortgage lenders during the application process. Student loans – like other loan types like credit cards or car loans – will be assessed by lenders as a measure of the ability of a borrower to repay the mortgage. Like other forms of consumer debt, student loans can decrease the ability of an individual to borrow funds to finance a home because they shrink income.

Student loans are reported to the credit bureaus like many other loan types. They’re unsecured debt, which means they are not backed by any collateral. That said, they don’t necessarily have a negative effect on your credit score – that is, unless you fail to make your payments on time. And if these loans are allowed to linger on for years or even decades, they may make it harder to get approved for a mortgage.

Not only that, student loans will be factored into your debt-to-income ratio (DTI), so a massive student loan amount could affect your ability to be eligible for a mortgage.

Auto Loans

Unlike student loans, auto loans are a type of secured debt, which means they are protected by collateral – namely, the vehicles that these loans are designed to finance. Sometimes having an auto loan on your debt portfolio can actually increase your credit score by diversifying the various debt types that you may have, as long payments are made on time and in full each month. If not, auto loan debt will have the opposite effect on your credit rating.

Personal Loans

Sometimes a personal loan is needed to cover the cost of surprise expenses, such as paying for a car repair or a last-minute unexpected bill. Mortgage lenders must consider all of the monthly debt that people have. If they have personal loans added to the mix, that monthly payment will reduce the loan amount that would otherwise be qualified for when it comes to obtaining a mortgage. Essentially, having personal loan debt will affect how much a person would be able to qualify for. 

A personal loan will essentially affect your debt-to-income ratio, which is a critical factor that lenders look at when assessing whether or not you would be eligible for mortgage approval. Basically, a DTI will provide some insight as to how likely you would be to default on your home loan payments.

Like other loan types, how you manage this added debt will have an impact on your credit score, which is a crucial factor that lenders will look at not just for determining whether mortgage approval would be granted, but also the type of interest rate you would be given. Basically, the better the credit score, the lower the rate.

If you’ve been making all your payments on time, that will have a positive effect on your credit score, and vice versa.

Payday Loans

Payday loans aren’t typically reported to the credit bureaus, and as such, they likely won’t show up on your credit report. However, if you don’t make good on your payments, it will certainly be reported and could very well pull down your credit rating.

Many lenders view payday loans in a negative light because they suggest that you may have some potentially serious financial issues that would prompt you to borrow small amounts of funds at exorbitantly high interest rates. As such, this could be indicative of your inability to pay off a mortgage.

Existing Mortgages

If you’ve already got a home loan and are looking to obtain a second one, your new lender will take a close look at your debt-to-income ratio to make sure you’ll be able to comfortably afford both mortgages each month. You will need to prove your ability to pay a second mortgage by supplying supporting documentation of income from various sources, including from your job, investment dividends, or rental income.

The Bottom Line

Having an active loan that you’re regularly paying down each month without missing a deadline can actually be a good thing for your credit. It shows potential lenders that you’re financially responsible and are fully capable of keeping up with your loan payments to stay on track to pay off the loan at some point. However, certain loans can do a disservice to your credit rating if you don’t manage them properly. Before you submit a mortgage application and begin your home search, make sure your debt situation is stable first.

Buying a home is a big deal. It’s a huge financial investment and therefore one that should be made with careful consideration.

But let’s face it: if you’re sticking to a specific budget, the odds of checking off absolutely every little item on your list are pretty high, especially if those things are more on the “want” side versus the “need” side. Buying the perfect home is not easy, and you’ll probably find yourself making certain compromises while honing in on a short list of properties.

That said, there are certain things that you should never compromise on when buying a home, including the following.

1. Location

You can change many things about a house, but you can’t change its location. In fact, when it comes to buying a home, location is the number one factor to consider. Not only does it impact your enjoyment of your home, it also plays a significant role in the future value of your investment.

For starters, consider how close the location of a home is in relation to work. The ease and convenience of your morning and evening commute will rely heavily on where your home is relative to where your place of work is located.

Ease of commute  is a critical component to think about when buying a home. While some people don’t mind a long ride into work, others might wince at the thought. Regardless of the distance from home to work, other factors come into play when it comes to commuting to and from work, including proximity to freeways and public transit.

Of course, there are plenty of other factors that go into location. An area’s school district, crime rate, and greenspace will also impact the desirability of a specific neighborhood. Close proximity to important amenities is also a factor to consider, such as groceries, eateries, and shops.

It’s important to have a clear idea about all of the above factors before beginning the search for a home. And if you’re not keen on a far commute to work or want to be in an area with good schools and a low crime rate, then location is definitely something that should not be compromised.

2. Structural Integrity

Unless you’re buying with the intention of completely tearing down a home and building a new one, then the strength of a home’s structure should be carefully considered. If it’s in rough shape, you could very well find yourself with a money pit.

The costs associated with repairing structural issues can be astronomical. That’s why it’s important for buyers to focus on homes with solid construction quality in order to avoid getting stuck with a property that will require a ton of work – and money – to bring up to par.

3. Number of Bedrooms

The size of your family will dictate the number of bedrooms you’ll need in the new home you purchase. Ideally, everyone will be able to have their own bedroom to call their own, though it’s not uncommon for siblings to share rooms with each other, at least for a few years.

That said, if there is a specific number of bedrooms that your family absolutely requires, this is one trait that you probably should not sacrifice when shopping for a new home. Even one less bedroom can make life uncomfortable and inconvenient.

If there are no kids in the picture right now but you plan on adding them some time soon, you’ll need to take this fact into account when searching for a new home. Being prepared with more space when you really need it can avoid having to search for another home too soon.

4. Size

Nobody wants to be cramped in their own home, so if a certain amount of space is needed to ensure that you and your family are comfortable, then don’t compromise on square footage. This is especially true if you’ve got little kids running around or pets that need some freedom to roam.

While a couple hundred square feet might not necessarily make a huge difference, cutting back on any more than that can compromise the enjoyment of your home. Determine the optimal size of a home you plan to purchase and try not to stray too far from that ideal.

5. Price

Getting pre-approved for a mortgage is an absolute must before house hunting, and will provide you with a limit of how much you could potentially be approved for to finance a new home purchase. But that doesn’t mean you should buy a home that maxes out that limit. While you might be able to get approved for a certain home loan amount, that could also mean that a much larger portion of your income will have to go towards paying your mortgage.

Being “house poor” is no fun. Not only does it restrict your leisurely spending, it can also impede on your ability to contribute to your savings or retirement accounts. In addition, it’ll take you a lot longer to pay off your mortgage if your loan amount is sky high.

Obviously, buying a home is a major financial investment that requires discipline to pay off on a regular basis, but you should never compromise the ability to funnel your funds to other important things in the name of buying a much more expensive home.

6. Working With an Agent

There’s absolutely no reason for buyers to go it alone when it comes to finding and purchasing a home. After all, sellers generally cover the costs associated with paying for realtor commissions. The services and expertise that agents can offer their clients are invaluable.

These professionals can help zero in on homes that match buyers’ criteria, negotiate a fair price, and tackle the complex paperwork that often accompanies a real estate deal. For this reason, buyers should never compromise the assistance of a seasoned real estate professional in the most important financial investment decisions they’ll ever make.

The Bottom Line

Before you find the perfect home that fits your budget and your lifestyle, you’ll likely have to check out several properties first. The odds of finding your dream home on the first visit are pretty low, especially if you’re sticking to a specific budget. However, the more homes you see, the better idea you’ll have of exactly what you can get for the money you’re able and willing to spend.

Of course, you’ll have your own specific preferences and requirements. That’s why it’s helpful to start your home search armed with a list of components that you’re willing to sacrifice and list of items that are absolute must-haves, and be sure to put in an offer only on a property that checks off all items on the latter.

Your home is a huge investment, so you obviously want the sale to be as successful as it can be. Unfortunately, many newbie sellers can actually sabotage their own sales without even realizing it. If you want to give yourself the highest odds of selling your home quickly and for the highest sale price possible, make sure you avoid making these rookie home selling mistakes.

1. Overpricing

Every seller wants to get the highest price possible for their homes when they sell, so it’s not hard to see why they may want to list high. However, overpricing a home can have big consequences, including bypassing plenty of qualified buyers and ending up with a stale listing. Lots of homeowners place more value on their homes compared to what the actual market dictates, and rookie sellers will often throw a big price tag out there to see if they can get any bites.

The fact of the matter is, one of the biggest reasons why homes don’t sell is because of their listing price. And the longer the home sits on the market without any action, the more buyers will think there’s a problem with it. Once the listing becomes stale, the odds of a price drop become imminent.

The best way to go about pricing a home is to list at current market value, which can be determined by your real estate agent through a comparative market analysis.

2. Failing to Stage the Home

Selling a home is already a big expenditure, so the idea of having to spend even more to have a home professionally staged can be daunting for many sellers, especially first-timers. However, not prepping a home for the market can be a big mistake.

Buyers often have a hard time visualizing what a home can look like if it’s filled with clutter and personal artifacts and is decorated in dated decor. While staging doesn’t necessarily have to be done by a professional, it should still be attempted even on a DIY level.

At the very least, a home on the market should be de-cluttered and thoroughly cleaned from top to bottom. It should also be de-personalized, which means taking down family photos and religious posters. It also means neutralizing, which means repainting the walls and decorating with more neutral colors like taupe or gray.

The whole point of staging is to help buyers become attracted to your home and develop an emotional connection to it. If you can make it easier for buyers to fall in love with your home and see themselves living there, you’ll be a lot closer to getting a solid offer and closing a deal.

3. Not Willing to Negotiate

Many sellers set a price point and refuse to budge from it. If it’s a sizzling hot seller’s market, perhaps this might be fine. But in a neutral market, rejecting every offer that doesn’t quite meet the seller’s expectations can drag out the listing.

If the offer price – or anything else in the contract – isn’t exactly what you had hoped for, be flexible and open to negotiating. A little bit of bantering is typical in a real estate deal, so at least consider countering the offer with some modifications to the price, deposit amount, closing date, or any other component of the offer to see how the buyer responds.

4. Lingering Around at the Open House

Nobody wants to have the owners breathing down their necks when they’re touring a home during an open house. It makes them feel uncomfortable and doesn’t allow them the freedom to peer through closets or make comments without fearing judgment from the seller. Prospective buyers like to have the liberty of going through all drawers and speaking openly about the home without knowing that the owner is lurking.

During an open house, the best thing a seller can do is spend those couple of hours outside of the home while their agent handles the visitors.

5. Being Inflexible With Showings

When a home is on the market, one of the best things a seller can do is make it easy to show the home. Only allowing visits on weekdays from 10am to 5pm and no showings on weekends, for instance, severely limits when prospective buyers can come and visit the home for a showing. This, in turn, shrinks your pool of buyers, which makes it tougher to find an interested buyer.

When selling, it’s important to be open to putting up with a little inconvenience of having strangers trek through your home during times that you’d rather be left alone. It’s also important to be flexible with short-notice showings. While you don’t have to let people in at 10 at night or accept a last-minute booking just 5 minutes before buyers show up, just keep in mind that the easier you make it for buyers to book a viewing, the easier it will be to find an interested buyer.

6. Not Emotionally Detaching From the Home

It’s tough for homeowners to let go of their homes, especially if they’ve been there for years and have raised a family with them. Such an emotional attachment is normal, but it can prove to be an obstacle when it comes time to sell. Unfortunately, many sellers allow their failure to emotionally detach from their homes get in the way of a successful sale. They may become offended by certain demands that buyers make or can become agitated when an offer comes in that’s lower than what the seller believes the home is worth.

When selling, it’s important to keep in mind that the property may be a ‘home’ to you, but it’s just another ‘house’ to the buyer. Maintain your composure throughout the process and understand the buyer’s shoes in order to increase the chances of a meeting of the minds, and therefore a successful sale.

7. Going the FSBO Route

There are plenty of sellers who try to sell their own home without the help of a professional real estate agent in an effort to save money on commissions. But while their services typically come with a high price tag, the potential to pocket more money when all is said and done by working with a real estate professional makes this expense all worth it.

Agents are seasoned professionals who have plenty of experience selling homes. They’re well aware of the precise tactics that need to be implemented to ensure a successful transaction. They’re able to price appropriately in order to ensure a higher sale price, and they’re well versed in negotiating to bring more money to the table.

The mistakes that rookie sellers who take the FSBO route make can actually cost them money at the end of the day. Hiring a real estate agent, which does come with a price tag, can often mean more money in your wallet when the deal is done.

The Bottom Line

There are plenty of things that are out of your control when selling, including the current market and the type of buyers who are presently searching for a home. However, there are lots of things that you can control that will have a direct impact on how long it will take for you to sell your home, as well as the final sale price. If you’re new to the home selling process, be sure to avoid the above blunders, and follow the guidance of your real estate professional.