Buying a home will probably rank as one of the biggest personal investments one can make. Being organized and in-control will contribute significantly to getting the best home deal possible with the least amount of stress. It’s important to anticipate the steps required to successfully achieve your housing goal and to build a plan of action that gets you there:
>>> First, ask yourself how much you can afford to pay for a home. If you're not sure on the price range, connect with one of our MORTGAGE EXPERTS within our lending division, Home Team Lending.
>>> Please, have no fears about financing! A pre-approval lets you know how much you can afford, and sets our price range which helps us in the home search. Getting a pre-approval truly helps alleviate some of the anxieties that come with home buying by providing you with the amount of home you qualify for and at what rate, with what monthly payment, and the amount of cash you’ll need to close which helps us negotiate on your behalf.
>>> Next, ask yourself where you want to live and what the best location for you and/or your family is. Consider convenience for all family members' proximity to work or school along with crime rate of neighborhoods, as well as types of homes.
Work with a Legitimate Lender. Get a Legitimate Pre-Approval.
Searching for a home without a legitimate pre-approval has proven to be one of the least effective methods of landing the dream home. General questions about your income, debt, assets, & credit history will provide the roadmap to your mortgage approval.
You should know there's a big difference between the two:
PRE-QUALIFICATION means that the lender may have your credit score and the details of your employment, income, and assets; however, nothing has been verified. This is NOT a Legitimate Pre-Approval. Verification of those items is required to close on a home, so you might as well get all the documentation to your lender BEFORE you start your home search. Otherwise, you might be looking at homes that you cannot afford.
PRE-APPROVAL means that you have applied for a mortgage; you have filled out the mortgage application, have your credit report, and have verified your employment, assets, etc. When you are Pre-Approved, you know exactly what the maximum loan amount will be, as well as your monthly payment and cash to close. That helps significantly while making and negotiating offers.
Whether you work with our in-house lenders or your own, the key is to be pre-approved with a legitimate lender. While you're not required to use Home Team Lending if you're working with Home Team Agents of lpt Realty (& vice versa), it sure can make a huge difference when it comes to ease of process and saving you time and often times money.
AVOID LENDERS WHO DON'T COMMUNICATE.
Hot, Normal, and Cold Markets
Hot Market
A "Hot" Market is an extremely ompetitive market and is advantageous to the seller. Sometimes, homes will sell as soon as they are listed or even before homes are listed. Typically, during a hot market, multiple offers will be made on each home and more often than not, homes will sell for more than the asking price.
It is even more crucial to be prepared and to be ready as a buyer when the market is hot. It can be easy to get caught up in the bid for a home, but if you are prepared (preapproved, solid in price range, realistic about your needs), it is easier to remain focused on your housing needs and price range.
Normal Market
In a normal market, there is a fairly large number of homes available and an average number of buyers. This market does not necessarily favor the buyer or the seller. A seller may not have as many offers on their home, but he or she may not be desperate to sell either. Again, it is the buyer’s responsibility to be prepared. During a normal market, the chances to negotiate are higher than in a hot market. As a buyer, you can expect to make offers at lower than the asking price and negotiate a price at least somewhat less than what the sellers are asking.
Cold Market
In a "Cold" Market, houses may be listed for more than a year and the prices of houses listed may drop considerably. This market is advantageous to the buyer. As a buyer, you have the time to make an offer that works in your best interest. It is not uncommon to low-ball and to find that sellers are accommodating to meet your needs.
Keep in mind that even though this market is a great time for buyers, you do not want to lose your dream home by being unrealistic. Your goal is to get your dream home at the best possible price.
DON'T KILL YOUR DEAL!
Don’t go on a spending spree using credit if you are thinking about buying a home, or in the process of buying a new home. Your mortgage pre-approval is subject to a final evaluation of your financial situation.
Every $100 you pay per month on a credit payment could cost you about $10,000 in home eligibility. For example, a car payment of $300/month could mean that you qualify for $30,000 less in a mortgage.
Even if you have accumulated enough savings, you should consider not making any large purchases until after closing. The last thing you want is to know that you could have purchased a new home had you curbed the urge to spend.
Long before we officially opened the Home Team Group, our lending division, Home Team Lending used to be called "Home Team Equity." In this ancient video from when they were much younger, Manny & Amanda poke some fun at mortgage deal killers:
As a buyer, you are entitled to know exactly what you are getting. Don’t take anything for granted, not even what you see or what the seller or listing agent tells you. A professional home inspection is something you MUST do, whether you are buying an existing home or a new one. An inspection is an opportunity to have an expert look closely at the property you are considering purchasing and getting both an oral and written opinion as to its condition.
Beforehand, make sure the report will be done by a professional organization, such as a local trade organization or a national trade organization such as ASHI (American Society of Home Inspection). Not only should you never skip an inspection, but also you should be present with the inspector during the inspection. This gives you a chance to ask questions about the property and get answers that are not biased. In addition, the oral comments are typically more revealing and detailed than what you will find on the written report. Once the inspection is complete, review the inspection report carefully.
It’s important that you choose an experienced agent who is there for you. Your agent should be actively finding you potential homes, NOT JUST OPENING DOORS. Additionally, as your ADVOCATE, your agent should be keeping you informed of the entire process, negotiating furiously on your behalf, and answering all of your questions with competence and speed.
First, find an agent who represents you and not the seller. This is beneficial during the negotiation process. If you are working with a buyer’s agent, he or she is required not to tell the seller of your top choice. In addition, he or she is also focused on getting you the lowest asking price.
Also, when you use a buyer’s agent, you will see more properties. Not only are they plugged into their Multiple Listing Service, but they are also actively finding homes that are listed as FSBO, or homes that sellers are thinking about listing.
We have several Buyer Specialists on our team and would love to let our TEAM WORK for you!
