Helpful Information for Buyers
When to ask for a "prequalification interview"
Where to find the perfect home
How to make a "first-home checklist"
Why a real estate agent can make it happen...
What to expect when signing a purchase contract!
Detailed information…Yours for the asking.
We would be happy to help review your objectives, set up a mortgage pre-qualification interview, and show you an exciting selection of homes. To learn more, give us a call – today! 704-888-1620
When to ask for a “ interview”.
Many first-time buyers fear they may not qualify for a loan, putting off their purchase indefinitely. If you share that concern a “prequalification interview” can really put your mind at ease. Here is how it works.
You begin by asking the real estate agent to set up an interview with a local mortgage lender. The purpose is to make a “pre-application” for a loan. The loan officer will explain the various types of loans currently available, then match your personal financial situation to the best available loan.
You will be asked top provide information in three virtual areas” 1)employment history 2)credit history, and 3) funds available to make the purchase. By analyzing your financial picture BEFORE beginning your home search, the lender can give you a clear picture of available financing options, and monthly payment and down payment requirements. You may even leave the lender’s office with a “conditional commitment” for a mortgage loan, subject only to verification of the information provided.
Your reward for taking this step is twofold. First, you’ll gain peach-of-mind. Your concerns about whether or not you qualify to buy a home will evaporate, leaving you free to make your choice in a positive frame of mind. Second, you will gain negotiating leverage with home sellers. As a “prequalified” home buyer, you become more valuable to sellers. Sellers are more likely to negotiate seriously with buyers who show evidence that they can complete their purchase.
Where to find the perfect home.
Try to locate the perfect home by yourself and you could spend endless days of frustration leaving messages on answering machines, and visiting overpriced, under improved homes. So…how can you locate the perfect home?
Ask the real estate agent you have chosen to do a property search for you. Agents have access to virtually every home currently for sale in the local market, including those listed with all other real estate companies.
If you can provide the agent with a “profile” of the home of your dreams, the agent can find it! Your profile should include the basics, i.e. number of bedrooms/baths, a price range, general locations, and even age of the home. For example, you might request homes from $80,000-95,000, with 3 bedrooms/ 2 baths, under ten years old in the northwest quadrant of town.
The agent will then conduct a search, probably by computer, of all available properties. The results may provide information on 5, 9, 12 or more properties matching the profile.
Once a selection of properties is identified, the agent will preview them to determine which are most suitable, and to eliminate those in poor condition. The final result will be a suitable selection of great homes from which to choose. You get to make your decision free from the frustration often experienced by those who search endlessly on their own.
Get started today! Make u your “first home checklist”, get “pre-qualified” by a lender, then ask the agent you have chosen to show you available homes. You could be moving in sooner than you thought.
How to make a “first-home checklist”
Planning to buy your first home? With just a little advance planning, your home buying experience can be an exciting adventure.
The first step, before you even begin looking at homes is to make a “first-home checklist.” To build the checklist, include all members of the family who will be living in the home with you. Ask each family member to write down all the features and amenities they would like to find in the new home. This may include: 1)number of bedrooms, 2)location, 3)home style, 4)lot size, 5)number of bathrooms, 6)price, or 7) any other desirable features.
Ask each person to create their own list. When completed, gather everyone together and compare the lists. Some features will be identical, i.e. the desire for at least two baths, or close proximity to schools. Others won’t match at all. Next, combine the original lists into just one, then prioritize each item with #1 being most important, and #10 being least important. When making the list, place no limitations. Allow everyone involved complete freedom to come up with their own dream list!
One the list is completed and prioritized, take a look at the possible limiting factors such as” price, and funds available for a down payment. Finally, determine which items on the list are an absolute must, and which can be compromised. If this is your first home, you may not get every feature- but you can own a home of your own!
Why a real estate agent can make it happen.
When your checklist is complete, choose a real estate agent before you begin looking at homes. This step is critical because the agent will conduct an extensive search for homes which match hr you list, saving you countless days or weeks of searching for the right home.
The agent you choose can provide several valuable services. The first is an interview to determine your objectives. By sharing your checklist, explaining your goals, and reviewing your financial situation with the agent, you can learn what possibilities are available to you.
You may be concerned about whether you qualify financially to purchase a home. Relax. The agent can arrange a pre-qualification interview with a mortgage lender to determine financial guidelines for your purchase, allowing you to make your purchase with confidence.
The next service provided by the agent is a tour of suitable homes. The agent will research all available homes, identifying a selection of those which match your objectives. This saves time, and eliminates unsuitable properties, making your decision much easier. When you fin d the right home, the agent will prepare a purchase agreement, helping you make application for a mortgage loan, and following up on the closing details such as surveys, appraisals, etc. These valuable services offered by an agent can eliminate much of the confusion about buying your first home.
What to expect when signing a purchase contract!
As you begin to look at homes, you will soon eliminate all but one- that special l on that seems right for you. Then what? You will be asked to sign a purchase agreement or contract.
A contract is simply a written document which spells out in detail everything agreed to by both buyers and sellers. Some of the ore important items include” price, type of financing required, legal description of the property, closing date, and possession date.
If personal property, i.e. drapes, curtains, etc. are to be apart of the purchase, they should be included in the agreement. The purchase contract is deemed to be the entire agreement of the parties- buyers and sellers- so don’t leave anything out. If you have questions, ask your attorney.
Upon signing the agreement you will be asked for an “earnest money deposit”. This is a negotiable amount which signifies your commitment to complete the purchase. It is applied to the purchase price of the home at closing. Sellers are likely to take purchase offers more seriously when accompanied by a substantial earnest money deposit.
Once a contract has been signed by all parties, a variety of activities begin which led to final completion and closing of the transaction. These activities include formal loan application and approval, an appraisal, a survey, title opinion by an attorney, inspections, etc. The final stage is the “closing”. At closing, final payment is made, loan documents are signed, and the sellers deed the property to the new owners- that’s you!
You can be protected in two ways from paying too much for a home. The first is up to you, an is called “comparison shopping”. You already to it every day when you purchase clothing, groceries, or gasoline.
Simply be sure you have looked at a variety of homes before you make your purchase decision. Some homes will offer more value for the money, other less. Soon, you will recognize a fair value when you see it.
The second method of protection- the “appraisal” – is done for you at the request of your lender. Before loaning money on a property, they lender wants to be sure the property value meets or exceeds the purchase price. An independent appraiser determines the final value.
In the end, your best protection against overpricing is your own best judgment. Be informed, ask questions, then make your best decision.
To help you through all the steps in the buying process, it is one necessary to choose one real estate agent. Once you do…give that individual you complete loyalty!
The agent you choose can identify and show virtually any home available for sale in the local market. This eliminates the need to contact individual owners or agents from many different companies. You save time, frustration, and inconvenience.
In return, you may expect the agent to invest whatever time is required to locate the right home for you. It is that simple.
Detailed information…Yours for the asking.
We would be happy to help review your objectives, set up a mortgage pre-qualification interview, and show you an exciting selection of homes. To learn more, give us a call – today! 704-888-1620
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