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Law Enforcement 1st Home Buying Tool Kit - Relationships

1. Build your TEAM

If there was one thing that will make a difference between a good experience/deal or a bad experience/deal...it is your team. Your team could consist of a Real Estate Agent, Mortgage Broker, Title/Escrow Agent, Insurance agent, Home Inspector, General Contractor, Real Estate Attorney, and the list can go on. We are going to start with the most important...and that is your Real Estate Agent and Mortgage Broker.

So how do you know the difference between a good team member and a bad one...we recommend the book Rich Dad's Real Estate Advantages (Buy Book)...in chapter 5 it covers some of the questions to ask and what to look out for.

2. Your Exit STRATEGY (& Credit) = Loan Options

Most mortgage brokers focus on your credit as the key factor in placing you into a certain type of loan. While your credit is important...It is your intended exit of your property that will define your loan options. If you are looking to hold this property for the long term then you may be looking for a 30 year fixed loan that is paid off within the 30 years or sooner. If you intend to only keep this home a few years, then an interest only loan may make the most sense. Why, because it will keep your monthly payment low.

No matter what your exit is, there is a loan program for everyone. The problem, most people look for the 'best deal' instead of the loan program that is the 'best fit'.

Tools - Mortgage Calculators , Online Mortgage Application

3. FIND a Home

So here comes the step of going out and finding a home. One of the most important parts of this process is managing your emotions. Yes, the purchase of a home is an emotional decision...lets just be aware of that. To give you a different perspective though, it is important to understand the difference between a consumer and investor. Consumers make decisions based on emotions while an investor makes decisions solely by the numbers.

My recommendation is be both a consumer and an investor, get what you want (emotions) yet make sure it makes financial sense.

Real Estate Agent Tools - Real Estate Listings

Nick Porter