Tips When Buying
TIPS WHEN BUYING
This is the process of providing your financial information and overall personal profile to a lender for the sake of getting a pre-approval letter, so that you can go out and shop for a new home. The pre-approval process, should allow for the lender to pull your credit and analyze your financial picture to determine how much home you may or may not qualify to purchase. The process will also allow for a lender to give figures for monthly payments, down payment options and overall general interest rates. Getting a pre-approval letter is the starting place for shopping for a home, since it allows your real estate agent to show you homes that you qualify for and helps you provide valuable insight to your real estate agent on your loan needs.
Once you are pre-approved, you will be provided with a pre-approval letter that allows you to go out and shop for homes. this letter is usually provided to the seller when writing an offer to show them your credit worthiness. If you decide to shop for houses without this letter, you may find yourself up against other buyers who are pre-approved and could possibly lose your dream home because of it.
Finding the House
When looking for a house, decide what is important…
Ranch – one level living – kitchen, living and dining rooms and all bedrooms.
1.5 Story – one bedroom on the main level, all other bedrooms are on the second or lower levels
2 Story – all bedrooms are on the second level
Side to Side Split – multi level living, bedrooms are usually on the top level.
Location, Location, Location
It’s the most important factor when buying a home and it’s something to keep in mind when reselling the house.
The Real Estate Transaction
Finding the house
Negotiating the price
Resolving the unacceptable conditions per the inspections
Finding the house is your first hurdle. Once you find the house you’ll make an offer and negotiate a price between you and the seller. You now have 10 days to conduct inspections with a licensed home inspector. If there are issues that need to be repaired or replaced then you can asked the seller to do so… sometimes they will and sometimes they won’t and remember to only focus on the safety issues. Once you and the seller have signed off on the inspections your lender will order the appraisal. The house must appraise for the purchase price. After the appraisal is completed the loan will go through the underwriting process for closing.
Who Pays the Commission?
The seller pays the commission for your real estate agent. There may be a fixed commission that you pay (Better Homes charges $210.00 to every buyer and seller in a real estate transaction) but that is the only cost to you to buy a house.
Please Keep This In Mind…
Your real estate agent is a independent contractor. Even though they are working for a real estate brokerage, i.e., Better Homes and Gardens, Reece and Nichols, ReMax, etc., your agent is not compensated until you have closed on your house. Please be courteous and respectful of your agent and the time and efforts they spend to find you a home!
The buyers agent works exclusively for the buyer; is entrusted with the responsibility of representing the buyer’s interest during the home buying process. The buyers agent will:
Help you find the fight home to match your needs.
Explain finance options and help you place your loan.
Provide you with information about the home and community.
Respond accurately and honestly to your questions.
Disclose material defects about the home.
Discuss types of insurance that are required.
Prepare a Competitive Market Analysis on comparable properties.
Council you on what price to offer the seller.
Present your offer to the seller.
Negotiate for your offer and counteroffers.
Represent you in the purchase of unlisted properties.
Document signed by both you and your agent to protect both parties and insure your agent is working for you exclusively.