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47% of first time home buyers feel that the home buying process is “rigged”

This was an interesting article about the negative impression first time home buyers have of the buying process. Sadly, 47% of the buyers were so discouraged by the process that the felt it was “rigged”. Notice they did not think it was difficult or confusing. They felt the process was so difficult that it must be something being done to them deliberately. That behind the scenes someone was rigging it against them.

Lack of education

In high school, I made a pair of boxers in home economics. I made a clock and produced a mock news broadcast in shop class. In college, I learned double entry bookkeeping for a fake multinational company in accounting and how to improve productivity in a factory during business management.

I never once learned how to buy a home.

It might not be “rigged”, but it can feel like that at times

No other debt has as much verification as a home mortgage. While it is good for everyone to verify a home buyer can pay back their loan, the process itself can seem like a full financial audit. It can sometimes seem invasive and like an invasion of your privacy.

Common sense is not a factor

Almost all mortgages are guaranteed by the federal government. That means they issue the rules and everyone is just making sure every buyer fits in those rules. I hear many buyers say “That doesn’t make any sense” and that is true at times. It may be obvious to all of us that a buyer can afford their new house payment or that we have enough information to verify income, assets, and credit history, but even with all of that, we still have to fit you in the Fannie, Freddie, FHA, or VA guidelines. Sometimes common sense is not a factor.

Everything feels rushed

Everything in real estate can seem rushed. When you find a house you have to rush to make an offer before someone else does. When you get an accepted offer we have a limited amount of time to get your financing completed and you have a limited amount of time to get packed up and ready for the move all while digging through your last two years financials to get your loan through. Everything feels rushed.

What can a buyer do?

It is difficult to remove all stress in the home buying process, but you will make it much better if you get your ducks in a row before you find a house. Talk to a mortgage loan officer weeks or even months before you even start looking at houses. Sit down with your loan officer and go through all options and give them all your documentation as soon as possible so they can have you ready to close on your loan before you find your home.

And this is important – If you need help getting through the home buying process use a local lender. A national lender at a call center will not walk you through the process. They will not pick up the phone or answer your text in the evening or over the weekend. And they will not know the area you are buying.

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