What Every Buyer needs to know Before Buying a Home
Home Buyers need to know how to choose a home, working with a lender, and what agent to use for the purchase. Not every agent or lender is the same, nor are they created equal. There are many things a home buyer will need to know before choosing an agent and a lender. Added to the decisions, a buyer must be educated prior to purchasing a home. Here are some key factors home buyers need to know to have a smooth transaction, and making their real estate investment a Smart Real Estate Investment.
Choosing A Real Estate Agent
When choosing a Real Estate Agent make sure the agent is Full Time and has experience. In the past it may have been ok to use a part time agent, or a family member that simple dabbles in real estate, but today's market is very different. Don't trust just anyone to handle one of the largest investments of your lifetime.
Get a CMA
Before writing an offer on any property, make sure your agent prepares a Comparative Market Analysis. This is done prior to writing the offer so you the buyer know what an appraiser is going to see and what the value of the property is. It doesn't matter what the seller is asking, or listing the property at. The educational side of purchasing is making sure you're not over paying for the property.
Buyers Estimated Costs Sheet
Make sure your agent is preparing a Buyers Estimated Costs sheet prior to writing an offer. The estimate should include your deposit, amount financed, property tax, closing costs, and estimated monthly payments. Know what your investment will cost you prior to investing.
Current Property Tax
Have your agent print out a current property tax bill. This will show you what the home is assessed at, and you should have a good idea if you're property taxes will stay the same, increase, or decrease.
Choose the right Lender
Choose a full time lender that knows how to communicate. Your lender needs to be knowledgeable in a variety of loan programs that fit your needs. Communication is key, so make sure your lender is clear in his or her instructions of what they need from you to process your loan.
Completing the Loan Application
The loan application is very important, and everything you complete on the application has to be accurate. As a matter of fact, all buyers should provide all supporting documentation to their application. It's important that a buyer is honest and will provide everything needed for Underwriting to grant the loan.
Be Proactive with your Lender
Always give the lender everything they ask for, and I suggest giving them all needed documents prior to being asked, or at the very least be prepared and have the documents ready. Meaning, if you've ever been divorced, then have the finalized divorce paperwork ready to submit prior to your loan being processed. Being Proactive makes for a much smoother transaction.
Pre-Qualification ve Pre-Approval
Pre-Qualification means you've talked with a lender and the lender feels you're qualified to receive a mortgage or home loan, but the application and processing for the loan have not begun or verified. Pre-Approval means your application has gone from the lender to the Underwriter, and your loan is approved, sometimes with a few small conditions. Getting Pre-Approoved is the strongest position for a buyer. When presenting an offer a Pre-Approved offer carries a lot more weight than a Pre-Qualified buyer.
Feel free to contact us with any questions.