From the Desk of Don Draughn, Mortgage Professional

Website:  http://ahfmortgage.elliemae.net/ddraughn

In Part One of this series, we looked at how important it is to Find Out What is on Your Credit Report.  Once you know what is there, you can either move to the next step - obtaining mortgage pre-approval or working on any credit issues that may keep you from obtaining pre-approval.  This is very important to your success in purchasing your new home in today's "credit crunch" climate.

In Part Two, we discussed the importance of Obtaining Mortgage Pre-Approval before you start looking at homes you might want to purchase.  Without a Pre-Approval, you don't know how much home you can afford so you might wind up falling in love with a home that is out of your price range and wasting your time in your search not to mention sellers and real estate agents may not take you seriously.

Part Three covered how important it is to Select a Buyer's Agent.  A Buyer's Agent gives you the benefit of having a Professional Real Estate Agent working on your behalf and representing your best interests throughout the entire transaction.  Having this representation assures you that you get the absolute best deal you can with your new home purchase.

Today, in Part Four, we are going to discuss the next step to take after you have completed steps one, two and three:

View Homes That Fit Your Pre-Approval

This is a process that is primarily the responsibility of your Buyer's Agent to fulfill.  Your Buyer's Agent has the ability to search a database called the Multiple Listings Service or MLS.  The MLS contains information on every property in the area you desire to live in that has been put on the market for sale.  It will not only give you the address and list price but it will give you very pertinent information like the number of bedrooms, the total square footage, the number of bathrooms, etc.  It will give you everything you need to know about the property before you choose to go see it.  This enables you to week out the properties that do not fit your pre-approval and the properties that really do not fit your personal criteria.  If you need a home with three bedrooms and 2 full bathrooms, you don't want to waste time looking at homes that have only two bedrooms and 1 full bath.  If you need a home that is a Ranch style where everything is on one level, you don't want to go look at two story homes that have stairs to climb to get to the bedrooms or that may have a basement that contains the laundry room.  It helps you use your time wisely when viewing homes.

Since you have decided to buy a home you need to make a list of the amenities you need to satisfy your lifestyle.  This list should include things like:

1. How close is the property to your employment?
2. How close is the property to your place of worship?
3. What are the schools like? (If you have children.)
4. What is traffic like?
5. How close are the shopping areas?

Of course, you also want to pay attention to the details of the property.  You should have a checklist that you complete for every property you visit.  If your Buyer's Agent is doing a good job you will visit several properties.  It will be hard to keep them straight.  If you write down the details, you will be better equipped to remember and differentiate between all the properties you see.  If you would like a FREE Homebuyer's Checklist, just email me at ddraughn@ahfmortgage.net or call me at (585) 425-5811 and I will send it to you right away.

Having purchased real estate in the past, I can tell you it is very important that you look at as many homes as you can before you decide to make an offer on one.  You don't want to "jump" on the first home you look at because you are limiting yourself if you do.  Yes, the property may seem like it is absolutely perfect but you may wind up missing a property that fits your needs even more perfectly.  Purchasing a home is going to probably be the biggest investment you ever make and you will have to live with your choice for several years.  Make sure you choose the right property for you.

The last thing I want to address in this segment is a question I am asked over and over again by my clients:  "Don, do you think it is a good idea to look at foreclosures when I am searching for a home?"  If I answer that question honestly I have to answer "Yes" and "No".  In todays "Buyer's Market", there are many homes that have been lost by the previous owners for one reason or another.  In many cases you can get a really good deal because banks that have foreclosed properties on their books want them off their books as soon as possible.  I have heard from many clients who were able to purchase a foreclosed property at substantially lower prices - 50% to 75% of the market value.  If this is the case then my answer would be yes.  However, when looking at foreclosures, you have to be very careful.  In some cases, there are issues with these properties, some serious, that could wind up costing you more money in the long run.  If you decide to make an offer on a foreclosure be absolutely sure you make the offer contingent on a home inspection result that is satisfactory to you, the buyer.  The home inspection will tell you what, if anything, is wrong with the property.  If the inspection comes back and you find there is a problem with the foundation then you have a way to back out of the transaction without any legal ramifications.  Remember, purchasing a home is going to probably be the biggest investment you ever make and you will have to live with your choice for several years.  Be sure you know what you are getting.

Purchasing real estate is a big decision and can be scary but it is also fun and exciting.  I hope this post has given you some helpful information.  If you have questions about buying your new home, don't hesitate to call me or email me.  I would be glad to assist you in any way I can.

The next post in this series will cover the details of how to "Make an Offer on Your New Home".  Be sure to look for it soon.

Don Draughn is a Professional Mortgage Consultant and a Sale Manager at Affordable Home Funding, Inc. located at 900 Perinton Hills Office Park, Suite 970, Fairport, NY, 14450.  His phone number is (585) 425-5811 or Toll Free (877) 223-0480 ext. 111.

REGISTERED MORTGAGE BROKER - N.Y.S. BANKING DEPARTMENT

Loans arranged with 3rd party providers.  Borrowers must qualify.