Thinking about buying a property without an agent? Try not to as there are things you might miss out because of your lack of experience. However, if you must proceed, getting your finances in order is the first critical step. Let’s walk through what you need to know to make your purchase as smooth as possible.
1. Start with a Credit Check
Before you even start looking at houses, know how much you can afford by checking your credit. This isn’t just about knowing your credit score; it’s about understanding how much a bank is willing to lend you. Here’s why this is super important:
- Set a Realistic Budget: Your credit check will show how much money you can borrow. This helps you look at houses you can actually afford.
- Avoid Loan Surprises: Knowing your financial situation upfront helps prevent surprises when you apply for a loan. Remember, not knowing your full financial picture can mess up your buying plans.
2. Talk to a Trustworthy Banker
Instead of just using online tools or worst, ChatGPT, chatting with a banker can give you a much clearer picture. They can look at your income and your credit report to give you accurate advice. Here’s why you should talk to a banker:
- Get the Full Picture: Bankers can give you a detailed financial assessment. They look at your whole financial history, which online tools might miss.
- Save Your Money: A banker’s thorough check ensures you don’t lose money. Imagine finding your dream home, paying a deposit, and then learning you can’t get the loan because of a credit issue you didn’t know about!
3. Understand the Risks of Going It Alone
Buying a house without an agent means you need to be extra careful. Here’s an example from our client to illustrate the risk:
A buyer thought he had all his finances sorted out. He told us to do just one job, find the perfect house for him, and, leave the finances to him. We insisted that he make an appointment with our network of reliable bankers, but he insisted. Nevertheless, we trusted him and found the perfect one. He made the down payment immediately (A 1% deposit. $20,000 in cash), but when it was time to finalize the loan, his application was rejected due to a bad credit score. He ended up losing his down payment because his initial online financial check didn’t catch everything.
That really hurts! For him, and for us…
4. Tips for a Successful Solo Purchase
If you’re set on buying a home by yourself, here are some tips to keep you on track:
- Buy Your Credit Report: Get a detailed credit report from a reliable source. This will show all the details about your credit health.
- Shop Around for Bankers: Don’t just talk to one banker; get opinions from a few to find the best deal and the most reliable advice.
- Learn the Basics: Understand the basics of buying a house, like legal stuff and how to negotiate. The more you know, the better protected you are against mistakes.
Conclusion
Yes, you can definitely buy a house without an agent, but it takes some really careful planning and preparation, especially with your finances. By doing a thorough credit check, talking to reliable bankers, and educating yourself about the buying process, you can make your dream of owning a home a reality. Happy house hunting!
