- A Professional Realtor® - A Realtor® is held to a professional Code of Ethics and most have the experience, negotiating skills and market knowledge to not only find you your new home, but walk you through all the processes –from contract to close.
- A reputable mortgage broker/ lender - Having the knowledge of what you can afford, what kind of loan you are getting and what your monthly payment will be and whether or not they may change, will make you a more powerful buyer. Sellers are more apt to accept an offer from a buyer who already has financing in place. A reputable lender will provide you all the available options that you have for financing- based on your specific needs and lifestyle.
2. Don’t let your emotions run away with you. Buying a house can be very exciting, as well as stressful. Keep your cool. Let your Realtor® and lender protect your best interests. Their experience and education will give them what they need to make sure that you are put and kept in the best situation possible.
3. Don’t compromise your credit. Just because you have pre-qualified for a loan and are under contract to buy a home, you are not in the clear, yet. You MUST understand that a final “credit-pull” will be taken right before you close, and if anything has changed, you may now be disqualified for a loan. If you make any major purchases it could affect how much you qualify for. Please discuss your options with your lender before you make a decision. For example, here is an example of a decision that cost a home buyer the immediate dream of home ownership:
After getting their pre-qualification letter from their lender and working with their Realtor® to submit an accepted offer on a great new home, Mr. and Mrs. Homebuyer realized that their new home was almost 3x the size of their current apartment. Now they could have space for the living room set and entertainment center that they always wanted! Their lender said that they had good credit, so they went to the local furniture store and qualified for a line of credit that covered their new living room furniture, entertainment center, and even a new bed set for their son! They were very excited, until … the day before close, their lender pulled their credit and saw the new line of credit. Although their credit was great before their visit to the furniture store, their debt-to-income ratios were very close. (This means that what they owed each month in debt compared to what they made each month was in a fragile balance.) Now that they had a new monthly debt, and no longer qualified for the loan for their new home! They were left with all new furniture for a home that they could no longer afford.
4. Don’t be unprepared for “surprise” expenses. Although your Realtor® should prepare you for common expenses (inspection costs, appraisal fees, moving costs, etc.) sometimes there are unexpected costs that may come up (mold or termite inspection, delay in closing = extra rent payment, lease buy-out, etc…). So, having some extra money in the bank to cover these costs will only make the process easier.
5. Don’t pick a house based on the décor. Although great decorating makes a house very presentable, the “stuff” does not come with the house. Conversely, horrible décor does not mean that the house isn’t great. Walls can be painted and flooring can be replaced. Pick the house based on location, functionality of the floor plan and structural stability. Also, make sure that the rooms are large enough for your furniture. There is nothing worse than realizing, on moving day, that you do not have room for your Schrunk! Having a professional Realtor® on your side, before you go out house hunting, will be the difference between a head ache and a successful purchase. Your Realtor® will help you through all of these steps as well as all the other details involved in buying a home.
For more information on the homebuying process, please visit The Wagner Professional Group at Keller Williams online: www.OnlineHomeConnection.com
Comments(11)