STEP 2: GET READY TO SHOP FOR HOUSES
• Research neighborhoods. Drive around neighborhoods where you would live. Find out about their schools, services that are important to you, and other statistics.
• Interview 3 lenders as recommended to you by friends, family, or co-workers. Select 1 to serve you.
• Get pre-qualified. Complete the loan application form (1003) and turn it in to your lender, along with the credit check fee. The lender will show you what type of loan is best for you, what size loan you qualify for, and how much cash you will need for your downpayment. (Yes, even zero-down loans and VA borrowers need a cash down payment.) Your loan size will determine what price of houses you should shop for.
• Ask your lender to calculate your complete monthly payment (PITI + HOA). Also ask him to show you how much you will be able to deduct on your tax return from your mortgage interest payments.
• If your lender says you are pre-qualified, get a pre-qualification letter from your lender. If your lender says you are NOT pre-qualified, ask what you can do. You may have to reduce your debt, save more money, or improve your credit score. If so, don't be discouraged. Continue focusing on your goal of homeownership and know that it is going to happen soon.
• With your pre-qualification letter in hand, interview 3 Realtors®. Select 1 to serve you and sign a Buyer Representation Agreement so the agent can begin working on your behalf right away. The Realtor® should also interview you and find out exactly what criteria you are seeking in a house.
• If anyone else will be approving of your home purchase, such as your parents who are gifting you money for a downpayment, be sure to let your Realtor® know. You don't want to get to the escrow closing and then be shocked when your parents are upset that they weren't included in the decision making process. Especially if you are counting on their financial support for this purchase!
• Sign up to receive email alerts from your Realtor®. She will email you with houses that meet your criteria (city, number of bedrooms, and price range) as soon as they come on the market. If you've already been receiving these houses from a Realtor®, then she has already been providing you with a great service at no charge! Please give that Realtor® the first opportunity to serve you.
• From the list of houses you receive, select a maximum of 10. Drive by the neighborhoods and research the communities. Become familiar with the areas you prefer. You are now ready to view the inside of homes that you select.
SEE ALL OF THE STEPS HERE (click on the links below)
1. PREPARE FOR HOME OWNERSHIP
2. GET READY TO SHOP FOR HOUSES
3. FIND A HOUSE
4. MAKE YOUR OFFER
5. ITEMS COVERED IN PURCHASE CONTRACT
6. NEGOTIATIONS
7. DURING ESCROW
8. CLOSING ESCROW
9. YOUR NEW HOME
Are you ready? Let's go! Take your first STEP today towards making your DREAM a reality!
Join my new AR group and post your blog at http://activerain.com/groups/virtualoffice
Regina P. Brown
Broker, Realtor®, e-Pro
Author of eBook "Stop Foreclosure Fast: Solutions to Save your House"
Text copyright © 2009 R.P. Brown, All Rights Reserved
;)
;)
;)
