This blog post is written for first time home buyers. However if you have not purchased a home in the past 6 years then much of this post can also be very helpful for you. Before the recession buying a home was not very difficult. Today you must have been pre approved for a loan if you want to buy a home. Sellers and agents want to know you are capable of buying before working with home buyers.
Don't waste time looking for a home before getting pre approved. You need to be ready to show the sellers you have the money.
The biggest difference in buying six years ago and buying now is getting financing. Too many buyers assume they are ready to buy when they have not even talked with a loan officer. In today's housing market you need to get a pre approval letter from a loan officer before you even look at homes. If you really are serious about buying a house you will first contact a loan officer.
Who should you contact? Many people like to use a bank that they already do business with. This is a good option for most and the best option for self employed people. Having a bank that you have a good history of working with will help especially if you are self employed. If you are not self employed then a local lender may be much faster than a large national bank. This is not a hard and fast rule but experience has taught me that you really need to work with someone that really cares about their clients. Contact me if you need some help getting a good loan officer.
Get Pre Approved and then start looking at homes. Know what your goals are and clearly communicate those to your buyer's agent. Read this previous post to help you know what is your real goal in buying a home. Make sure your agent really understands what you need and want.
Look at homes you can afford. Don't set yourself up for major disappointment. If your goal is to not spend more than $130,000 then have your agent show you homes that are priced no higher than $134,000. The agents that sell most of the homes in Lexington will do their best to price homes so that the homes will sell for a minimum of 97 percent of the asking price. It is wishful thinking to believe you will "steal a house" in Central Kentucky. If your primary motivation and goal is "to steal a home" then experience has shown me you really are not looking for a place to live. You are looking for something that will feed your buyer's ego. There are new agents that will run around showing you lots of homes but you won't find very many seasoned agents that have the time to help you massage your ego.
Give me a call or shoot me an email if you are thinking of buying or selling. pcampbell@rhr.com 859 684 5890
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