Paying rent is like pouring money down the drain. But it's true, buying a home can be a "hair-raising" experience. It can be a roller coaster of emotions... finding the right place... securing the loan... moving in. Many home buyers do very little research before "diving in" and investing their hard-earned money. Before doing that, it make sense to be as informed as possible.
I have found renters just need information and direction. Teach the renter about home ownership and they will be your most loyal clients. After meeting with a first time home buyer I sit down and go through a series of steps to get them on the road to home ownership. Because of my background as a college professor, I give homework assisgnments to my clients. They actually follow my directions, funny how that works:
1. Utilize A Team- I introduce the client to a team of professionals and give them names and phone numbers to contact a lender, home inspector, and title company. They are given 3 different professionals in each category and they have one week to interview the team. I am showing the new home buyer a process so they start to decrease the stress and increase comfort of the process.
2. Income Plus Lifestyle Equals Mortgage Payment- After they have an idea of what they qualify for, from the lender perspective, we talk about being house poor. I am very honest with my clients and the additional expenses of owning a home. We discuss maintanance issues, insurance, utilities, furnishing the new home, etc. Many of my clients appreciate my honesty in assisting them with their home decision. I DO NOT offer any financial or tax advise, just send them on another interview process. Their homework assignment is to go home and put down all their expenses and income. Will this work for them?
3. View Several Homes- We search the internet, look through the magazines and they drive through the neighborhoods of interest to narrow down the choices. During our home tours I really get to know the client, family, wishes, wants, etc. Many of my clients have become very good friends. Homework - Locate the home of your choice, then its contract time!
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