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So you've decided to become a homeowner. Maybe you're ready to buy your first home, or perhaps you're considering a vacation home or an investment property. Either way, you probably have the "househunting bug" and are feeling excited, nervous, anxious and confused. You've browsed through enough real estate magazines and web sites to know what's out there, and you may even have gone through a few open houses. You're ready to take that first step, but where do you begin? Are you really prepared to make what may be the biggest purchase of your lifetime? For most people, the temptation is to call on "for sale" ads and start looking at houses right away. After all, that's the fun part! Checking out other people's decor and imagining how your own belongings would fit is a spine-tingling, exciting activity. Unfortunately, without the proper preparations, you may find yourself in love with a property and no means to purchase it. Maybe it's more than you can afford or perhaps the owner sold it to another buyer who could close the transaction quicker or with terms more to the seller's liking. Ok, I hear you saying "Well, what's the answer? How do I begin?" If you are truly serious about making a real estate purchase, then there IS a way. Read on, my friend. Financing Unless you were born rich or just won the lottery, you aren't going to be buying a home without some help. Buying real estate is an investment, and investing takes money. Before you look at that first house, you need to partner with a good loan officer. A loan officer who can help you answer all the pesky questions that can affect what kind of home you end up with. Questions like: "How much can I afford?" "Do I need a huge down payment?" "What about closing costs?" "Who can give me the best rate?" "Is my credit rating good enough?" "What will my monthly payments be?" "Are there hidden costs?" That's just a few--there are many others. Once you find a loan officer you trust and can work easily with (more about that in a moment), ask them to Pre-Qualify you for a mortgage. Better yet, get Pre-Approved. Get Pre-Approved What's the difference between being Pre-Qualified and Pre-Approved? A lot. Whether you talk to your loan officer over the phone or sit down with him or her face to face, your loan officer will ask you a number of questions about your finances including your salary, your work history, other debts you may have, your bank accounts, etc. Based strictly on your answers, the lender will be able to tell you how much house you can afford and what price range you should stay within when you go looking for homes. That's Pre-Qualified. Now, if the lender takes the information you give and VERIFIES it (with your permission, of course) by running your credit report, calling your employers, checking with your bank, etc. and then puts it all together with an official loan application and gets an answer back from the underwriting department of the lender saying it's OK to give you the money, that's Pre-Approved. Either way, have your loan officer put it into writing and take it with you when you go shopping. Having a Pre-Qualification or a Pre-Approval letter is very important. It gives you negotiating power when you find the house you want to put an offer on, because it will assure the seller that you are serious and can afford to follow through on your offer. A Pre-Qualification says that you will get a loan if all the information you gave the loan officer is true. A Pre-Approval says that you already have the money, you just have to tell the lender who to give it to. At that point, as long as the house appraises for what you have agreed to pay for it and any other conditions imposed by the lender are met, the transaction will close. Bear in mind that it can take from 3-6 weeks for your lender to verify all the information you have provided and for the other conditions to be met. If you get Pre-Approved instead of Pre-Qualified, you are just that much ahead of the game. Most people think of banks when they contemplate getting a mortgate, but banks are only one source of funding. There are many reputable lenders out there, so don't limit yourself. Loan officers at banks are limited to that bank's loan products. A mortgage broker, on the other hand, can help you choose from unlimited programs and offerings from many different lenders. He or she will assist you in choosing the best loan for your needs, often getting you a better deal than you would have gotten from a bank. Remember, the "best deal" is not always the lowest rate. You have to consider all the terms of the loan, including what the lender's fees are, whether or not you have to pay "points", how much down payment is required, etc. Two of the mortgage brokers that the "I" Team frequently recommends are Dave Scully at Evolve Mortgage (513-459-8590) or TR Wise at Union National Bank (513-235-0999). Either of these two loan officers are experts in the loan industry and will be able to help you very quickly. Getting Help Now, with pre-approval in hand, it's time to take on another partner in the home buying process--a Realtor. Oh, I can hear the groans and complaints now! Nobody wants to be "sold" a house. We understand! High-pressured sales tactics are annoying and non-productive. NOT what you need. Some of you may be saying, "I'm going directly to a builder, so I don't need an agent." Nothing could be further from the truth! When you sit down with a builder to buy a home, they have all their experience behind them and naturally want to protect their own interests. Most people don't build more than one house in a lifetime--who protects that person's interests? Who knows the building process as well as the builder's representative and how to negotiate a better deal for you? What you need is your own Buyer's Agent, someone who is working for YOU, not the seller. 100% for You, 100% of the Time A Buyer's Agent is just as knowledgeable and experienced about real estate trends in the areas you're interested in as the other Realtors whose signs you see in yards all around town. But while those "listing agents" are contractually obligated to get the best deal possible for their seller-clients, a Buyer's Agent is loyal to YOU and YOUR interests!
You DESERVE Representation! Working with a single agent is much easier on you. For instance, say there are 10 houses you want to see. They are all listed with different realty companies. Your Buyer's Agent can coordinate a time to show you all 10 houses when you want to see them, not just when the 10 other listing agents can make time for you. They'll get to know your taste and needs, which will help them to guide you to better homes faster. They'll also be a great help getting you information about different neighborhoods including schools, attractions, houses of worship and more. Then, when you find a home you love, your Buyer's agent can provide you with information about other similar houses and what they sold for so you can make an informed decision about what to offer. Afterwards, your Buyer's Agent can expertly guide you through the negotiations, inspections, walk-throughs, insurance issues, and all the other details that need attention between the time you first see the home until the day they hand you the keys. Furthermore, the services of a Buyer's Agent cost you NOTHING, and can represent a significant savings for you. If you need more reasons to use a Buyer's Agent, CLICK HERE. Please don't hesitate to call or email us for a FREE, no obligation consultation. |