To Buy A Home / Step One

To Buy A Home / Step One. To buy a home, step One and step two are fully interchangeable.You need two fiduciaries, two people to look after your interest, to protect and serve you. It matters not witch one you pick first! The first one should help you pick the second!

You’re going to need a real estate salesmen or broker, either may be referred to as "Agent."

The difference between a "Real Estate Salesman" and a "Real Estate Broker" is one of licensing. A "Real Estate Salesman" must work for a "Real Estate Broker" who is ultimately responsible for the actions of "his salesmen." I recently read a comment by a salesman that they were "independent contractors" and not responsible to their Broker, despite any thing they may do, avoid them like the plage if they don’t know "independent contractors" is an IRS Tax term, a type of employment, that they are still legally responsible to their Broker and both are responsible to you, run!

Many mistakenly think the difference between real estate salesmen and brokers is education and experience they are wrong! Real Estate Brokers are required to have more education and experience than real estate salesman, but many salesman have many times the minimum required to become a broker. There is a high-bred most often licensed as an "Associate Broker" an agent that meets all the requirements of a broker except for opening their own office. In practice all the broker’s license tells you is that the Agent is not a beginner and even that is questionable in some states. The only way to judge a real estate Agent is through their references!

The other person you need is a "Loan Originator" a "Mortgage Loan Originator!" There are many types of "Loan Originators" and despite what you think if you’re under 50 you’ve probably never met a "Loan Officer," "Loan Officers" make decisions, since 1974 most lenders have been eliminating "Loan Officers" in favor of anonymous "loan committees and underwriters." Loan Originators outside of those few licensed by CA’s DRE are not required to be your fiduciary. Many working for direct lenders have a prior fiduciary to that lender, most others simply avoid the added responsibility. Except for direct lenders, institutions lending their own money an Originator’s licensing tells you nothing. The only way to judge a Loan Originator is through their references!

It takes a team to get you a home of your own. Processional real estate teams have co-captains, an Agent and a Loan Originator. Both have separate, but interlocking duties. It’s that interlocking that is so important. You should select one or the other then have them suggest the other so that they work well tegether!

Once your co-captains are select you should insist that they meet with you together to take your mortgage loan application. This is an old practice, it use to be common, but alas has fallen by the wayside. The reason is selective hearing, your’s, your Agent’s and your Loan Originator’s!

You want to gather your Agent and Loan Originator in the same location to be sure that your needs are known and that all three of you and your spouse all hear the same thing! Lending and real estate are separate dialects, your Agent can help you understand Lender and your Loan Originator can help you understand real estate, together the three of you will have a much better experience.

Life is not like HGTV! If you are approve for $300,000.00 you can not simply jump to $500.000 because the Agent can’t find what you’re looking for. It’s necessary that all three of you hear your desires, requirements and capabilities!

Step One is always get pre-qualified/pre-approved by your team.

In real estate and mortgage lending the only protection the consumer has is the personal integrity of his Loan Originator and Agent!