Buyer Tips:
Why Use an Agent?
It is a common mistake to think that a Realtor will cost you money. Actually the buyers agent is paid completely by the seller of the property and will cost you nothing out of pocket. It's important that you choose an experienced agent who will be actively finding you potential homes, keeping you informed of the entire process, negotiating furiously on your behalf, and answering all of your questions with competence and speed.
As a buyers agent, I am not required to tell the seller of your top choice. In addition, I will be focused on getting you the best price possible.
Also, when you use a buyer's agent, you will see more properties. Not only am I in the Multiple Listing Service, but I am also actively finding homes that are listed as FSBO, or homes that sellers are thinking about listing.
Get Pre-approved
It used to be that buyers could go house shopping and when they have found their home, they go to get the loan. However, in today's market, that has proven to be one of the least effective methods in landing your home.
Most lenders can pre-qualify you for a mortgage over the phone. Based on general questions about your income, debt, assets, and credit history, lenders can estimate how much mortgage you qualify for. However, being pre-qualified and pre-approved are different things. Pre-approval means that you have applied for a mortgage; you have filled out the mortgage application, received your credit report, and verified your employment, assets, etc. When you are pre-approved, you know exactly what the maximum loan amount will be.
A pre-qualified letter is not verified and in essence, does not count for much if you are competing with other buyers who are pre-approved. When you are pre-approved, you and the seller know exactly how much house you can afford. It gives you credibility as an interested buyer and lets the seller know immediately that you will qualify for a loan to buy their property.
With so many properties today being bank owned or in the short sale process the pre-approval is the most important step. This will tell the bank that your are ready and there is no question whether you are able to close escrow on the house.
Inspections
As a buyer, you are entitled to know exactly what you are getting. Don't take for granted what you see and what the seller or the listing agent tells you. A professional home inspection is something you MUST do, whether you are buying an existing home or a new one. An inspection is an opportunity to have an expert look closely at the property you are considering purchasing and getting both an oral and written opinion as to its condition.
Beforehand, make sure the report will be done by a professional organization, such as a local trade organization or a national trade organization such as ASHI (American Society of Home Inspection). Not only should you never skip an inspection, but also you should go along with the inspector during inspection. This gives you a chance to ask questions about the property and get answers that are not biased. In addition, the oral comments are typically more revealing and detailed than what you will find on the written report. Once the inspection is complete, review the inspection report carefully. |
