October 2019

Helping homebuyers avoid costly mistakes

There's nothing like helping a homebuyer get into their very first home. Sharing these tips with them can help ensure they're happy and successful in their new home. And when they're ready to move up, they may think of you again!

  1. Setting a budget is key

    Have your clients planned ahead for all the expenses of buying a home? Finding the right home is easier if it's clear what they can afford. Encourage them to look at their full financial picture — income, expenses and savings. And be sure they consider these expenses:

    • Up-front costs such as down payment and closing costs
    • Monthly mortgage payments, including principal, interest, taxes and insurance
    • Regular utility and maintenance costs
    • Savings for big-ticket repairs
  2. A mortgage preapproval gives them an edge

    If they haven't already, suggest to your clients that they find out how much they can actually borrow on a mortgage by getting prequalified1 or preapproved.2 A Bank of America lending specialist will be happy to help. Plus, let them know that a preapproval can give them an edge when they make an offer, since the seller can be confident they'll be able to get financing.

  3. Give them a preview of the process

    Buying a home can be complicated, and a first-time buyer may not know what to expect. Help set their expectations and build a good relationship by explaining the process up front. Consider topics like:

    • What you do for your clients
    • The difference between a buyer's market and a seller's market
    • How you make an offer
    • How long it may take to go from offer to closing
  4. Don't let them fall in love at first sight

    Emotions are powerful. Too many buyers get carried away by the excitement of finding the “perfect” home. This can lead to paying too much for a home, or buying a home that's perfect in some ways but definitely wrong in others. Help them stay cool, and remind them not to make an offer until they've considered all the angles. Is the price right? Is the home in good condition? What about the neighborhood?

    You can also remind them to be a little flexible. They shouldn't have to lose out on an otherwise great home because of easy-to-fix issues like ugly carpets or weird paint colors.

As a Bank of America lending specialist, I’m here for you and your clients throughout the home buying process.

1

Prequalification is neither preapproval nor a commitment to lend; borrower must submit additional information for review and approval.

2

Final loan approval is subject to satisfactory appraisal and title review and no change in borrower credit and financial condition. Preapproval is subject to terms and conditions and timely submission of required documentation; ask your Bank of America Wealth Management Lending Officer for details. Preapproval does not commit to the continued availability of the loan program. The interest rate shown in a preapproval is based on current market rates and is not locked. You may choose to lock an interest rate after we receive the complete and executed purchase contract. Borrower must submit purchase contract within 90 days of preapproval. If the rate at time of lock is higher, or a rate lock expires prior to funding, or for adjustable-rate loan programs when the index value rises, we must determine your ability to repay the loan at the higher rate, which may lower the loan amount or invalidate the pre-approval. Not available on all loan products. Not available on refinance loans.

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