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7 STEPS TO A SUCCESSFUL HOME-BUYING EXPERIENCE

By
Real Estate Agent 353750

 

     THESE 7 STEPS WILL HAVE YOU

SAILING THROUGH THE HOME BUYING PROCESS

 

 

While there's a wealth of information available to homebuyers about the process of homebuying, as a Realtor, I continue to encounter buyers who are caught in the same pitfalls.   These are not rocket-science and certainly no secret, but follow these seven steps in order and you'll definitely have a less stressful experience!

 

 

1.  CHECK YOUR CREDIT!    Most homebuyers want to start looking at homes right away.   They are eager to find the perfect new home and make an offer.    But the BEST way to start the homebuying process is by ensuring that your credit score is within a range which will allow you to obtain a loan (unless you’re paying cash, of course).    Although there are exceptions to the rule, typically you’ll need to have a minimum credit score of 620.

 

2.  AFTER CREDIT, IT’S ABOUT THE LENDER.    I know, I know.  You want to jump in the car and look at houses now.  But if you find one you love and want to make an offer so that you don’t lose out, you’ll need to have a preapproval letter from a lender to accompany your offer.    Start by contacting a lender first, make sure you’re preapproved and know what you can afford -- then you’re ready to go!

 

3.  START YOUR SEARCH ONLINE.   90% of homebuyers start their search on the internet and with good reason.   You can gather loads of valuable information about homes for sale including photos, neighborhood information and school ratings.   A secret to using the internet to search for homes Is to make sure the search website you use provides up-to-the-minute information.   The best sites to use are those provided directly by Realtors, since they are connected to the local MLS.    So save gas and time:  do your homework and start your search online and not in the car.

 

4.  USE A FULL-TIME, PROFESSIONALLY DESIGNATED "REALTOR".    There’s a joke in Texas that there are more licensed real estate agents than there are licensed drivers.   I don’t know if that’s true but in my local market (Dallas/Ft. Worth) there are over 13,000 licensed agents.   That doesn’t mean they are all working in real estate on a full-time basis.  And guess what?  Since the real estate market changes rapidly, if an agent is not working full-time, they will not be prepared to provide the service and information that you need.  

So while it’s wonderful that Aunt Sally has her license and wants to help you find a home, if she hasn’t sold a home in over six months, you’d be well advised to find an agent who has.   Get serious!  This is a major investment and you need all of the professional help and advice you can get!   

And did you know that “Realtor” is a registered designation?   Not all licensed agents are Realtors.   Realtors have pledged to subscribe to the strict code of ethics of the National Association of Realtors.

 

5.   MAKE SURE YOUR REALTOR IS REPRESENTING YOU.    Many times homebuyers drive by a home, see a “For Sale” sign in the yard and call the agent on the sign to show them the home.   While that definitely should get you an appointment, who is that agent representing?  The seller!  Do you honestly think that the listing agent is going to represent your interests?   The best way to ensure your interests are represented is to have an agent who works to find you homes and show you homes and who will sign an agreement to represent you, submit offers on your behalf and negotiate all the way to closing.  That way, you know for certain that there’s no conflict of interest.

Even if you’re buying new construction, the sales agent for your new home does not represent you; he/she represents the builder.  Brent Lingo, a loan officer with Chase has not one, but TWO personal stories about the lack of good representation in selling his home and in purchasing new construction.   You don't have to ask many people to hear similar stories.  Find a great agent and make sure you've signed an agreement for them to represent you!  It doesn’t cost you anything (in the state of Texas) to have a Realtor represent you!

 

6.   NO MATTER WHAT, GET A HOME INSPECTION!   Even if you are purchasing new construction, GET A HOME INSPECTION!    I can’t tell you the number of brand new homes where I’ve represented the buyers, encouraged them to get a home inspection and the inspection turned up unseen items that need to be corrected!   While not every seller is going to repair or remedy items on an inspection report, you need to know whether your new home is structurally sound and where there might be problems that you’ll want to address.

 

7.  DON’T DO ANYTHING TO AFFECT YOUR CREDIT ONCE YOU’RE UNDER CONTRACT.  I jokingly tell buyers to not even change their hair color or clip their fingernails.   Lenders tell horror stories of buyers who, while waiting to close on their home contract, decide to get a flat screen from Best Buy or sign up for a new credit card.  Guess what?  Your credit was just materially affected and you may not get that home loan after all.   Even co-signing is a no-no, so parents of adult children, don’t even think about it.  At least not while you’re waiting on the loan to close.

 

Purchasing a home is a big decision, not to be taken lightly.  But following the above steps will greatly improve your experience!

Comments (3)

Cindy Edwards
RE/MAX Checkmate - Johnson City, TN
CRS, GRI, PMN - Northeast Tennessee 423-677-6677

Great advice from start to finish.  I especially like the one about using a FULL TIME Realtor.  So important.

Feb 16, 2012 04:33 AM
Lori & Scott Mitchell
Slifer Smith & Frampton Real Estate - Breckenridge Colorado Luxury Homes - Breckenridge, CO
Breckenridge Colorado Real Estate

Such great advice!!  Especially always get an home inspection!! Thanks!  Laura

Feb 16, 2012 04:45 AM
Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

Good list, for sure...especially that # 6 one!

Feb 16, 2012 04:55 AM