I WANT TO BUY A HOME, WHAT DO I NEED TO DO?

R p (Shepherd Brokers.com) — Wed, 05 Nov 2008 22:45:43 -0800

I WANT TO BUY A HOME, WHAT DO I NEED TO DO?

Your first home purchase can seem like an overwhelming task but it is really not that hard. Here we go.

Step 1 - Research professional Realtors in the area you would like to find a home. That is a pretty easy task now with the internet. Just Google your City, State, Real Estate and then begin to check out their websites. You will want to look for several items on the website:

a) A good Realtor website will have an excellent search engine capabilities for you to search all the homes listed on the MLS - not just that Realtors' listings.

b) Info about the agent - not just that he or she is a nice person and the "best" agent - but info about their accomplishments, education, and experience. Even time as a Realtor can be a poor indicator as their spouse may bring home the paycheck and they only work "part time". You want a Realtor who is full time, and will protect your interests.

Step 2 - Let your Realtor help you select a local Mortgage professional who can help you get pre-qualified for a loan.

a) I said local Mortgage professional for a reason. You want someone local for several reasons but most importantly because you and your Realtor will be able to hold their feet to the fire. It is hard to hold someone off in cyber space accountable. Someone who never has to see you or the Realtor again is much more likely to over promise and under deliver. In addition the local lender will know all the parties to the transaction like the attorney, appraiser, and processors. They are much more likely to be able to call up the appraiser and say hey "Bob" could you go ahead and get the appraisal done for us because we are in a time crunch.

b) Use a major bank Mortgage department for your loan rather than a loan broker. A broker is really just a middle man. At one time a broker could sometimes find a "special" loan product to fit you but not anymore. Everyone basically has the same loan products so I recommend going with a major player like Wachovia, Wells Fargo, GMAC, or Suntrust in our area as they have the resources to close your loan fast and on time. You will be dealing with the people making the loan and not a middle man. Ask your Realtor who to use - they should know who can close a loan smoothly.

Step 3 - Go find a house! Use your Realtors home search website to find homes you might like and show these to your Realtor. This will help him/her understand the type of home you like but don't fall in love with these because they may look different when you get there. Let your Realtor suggest other possibilities that they think may fit you as well. It is a collaborative effort. Keep an open mind! Only so many homes will fit your criteria and price range - so once you establish which ones those are - it is simply a matter of choosing the one that fits you the best.

Step 4 - When you find your home - make an offer! Have your Realtor pull up area comparables and talk about negotiating strategies and what things are important to you like time frame, seller paid closing costs, home warranties, and other items that are important to you in the purchase.

Step 5 - Contract to Close - If you have chosen a good Realtor and Mortgage team this portion should go smoothly. Most of the horror stories you hear are because the client chose some fly by night mortgage broker who couldn't deliver what he promised. Things to remember here are:

a) Go ahead and get the lender all the documentation they ask for as soon as possible. They cannot submit your loan without all documentation.

b) Cooperate with all inspections and other items in a timely manner. Real Estate contracts are time sensitive.

Step 6 - Close and move in your new home - Closing is simply a 1 hour process at the lawyers office where you sign all documents to take responsibility for paying your mortgage loan and the seller gives you good title to the house. The lawyer is there to make sure everything is done in proper and legal manner so that everyones interests are protected and you receive clear title to the home.

Congratulations! You are new homeowner!

I WANT TO BUY A HOME, HOW CAN I IMPROVE MY CREDIT?

R p (Shepherd Brokers.com) — Wed, 05 Nov 2008 22:29:26 -0800

I WANT TO BUY A HOME, HOW CAN I IMPROVE MY CREDIT?

As with many things - just asking the question - is a good first step.

1) Contact a mortgage professional in the town you wish to purchase in.

The reason I have this as the first step is that a mortgage professional can pull your credit and advise you on where you are at and how to get where you want to go. I adivise either sticking to a major bank lender like Wachovia, Wells Fargo, or GMAC in your local area because it will keep you away from the scam artists. There are mortgage brokers not with the major banks who are awesome but there are some real scam artists who will take you for a ride.

2) Keep credit balances on revolving lines like credit cards as low as possible.

Credit scores are higher when you use a low percentage of your available credit. So, if possible keep credit card and other revolving credit lines below 30% of available credit. In other words if your credit card has a credit line of $5000 - keep the revolving balance below $1500. This gives you plenty of room for emergencies and keeps your credit score high.

3) If you want to buy a house - don't go buy all new vehicles.

Debt to income ratios are very important for determining what kind of home you will qualify for. 2 new vehicles with $500+ per month payments on each will take a chunk out of your income leaving less to use for a home. Make your new home a priority and buy a home - then determine if you have enough available to purchase a vehicle. Sometimes it is smart to save up or just have one nice car and one that will just "get you by".

4) Pay on time!

This seems like common sense but it is important that you pay attention to your bills and get them in on time. Nuff said about that. :)

5) Correct any mistakes on your credit report.

When your mortgage professional pulls your credit report - look for mistakes - and enlist their help in correcting any mistakes.

6) Find a Good REALTOR

Now that you have your credit ready to go - call me and we will find you a home that your family will enjoy!

R p's Blog

I WANT TO BUY A HOME, WHAT DO I NEED TO DO?

I WANT TO BUY A HOME, HOW CAN I IMPROVE MY CREDIT?