Barriers to Buying Santa Cruz Real Estate

Posted by Lauren Spencer on Friday, October 8th, 2010 at 11:01pm.

Buying a new home takes a lot of preparation. Without knowing what you are walking in to, you are bound to run into road blocks. A good Santa Cruz real estate agent can help you understand the intricacies involved in purchasing your new home. Some of the most common problems that buyers run into are avoidable.

Buying the Best is Nice… but

If you’re looking at the most expensive house in the neighborhood, in the city or in the state, you’re asking for problems.  The chance that it will go down in value, be difficult to make payments on if anything changes in your lifestyle, or be hard to sell in the event of a foreclosure is high, which makes it tough to get a mortgage.

If you must have the most expensive home, pay the most you can as a down payment.  That will lower the risk and make it more likely your loan will be approved.  If you can't afford a big down payment, you’re probably looking at a formidable roadblock to a loan.
Being Unprepared

Walking into a mortgage lender unprepared is like shooting yourself in the foot. Have your financial information in hand. If there are any problems with your credit, be prepared to explain them. Have a good budget including the estimated new mortgage to show you can handle the loan.  Think like a Boy Scout and be prepared.

Not Taking All Costs into Consideration

A big mistake many prospective home buyers make is not realizing there are many costs associated with buying Santa Cruz real estate besides just a new mortgage. There are closing costs, legal costs, insurance costs, property taxes and deed and recording fees. All of these have an impact on your wallet and most need to be paid at closing.

Want to know more about how to prepare to purchase Santa Cruz real estate?  I’d be happy to walk you through the entire process.  Give me a call today at 831.662.6522 or email me at or for additional information visit my website at



Roadblock to a loan

Costs associated with buying


About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

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