There are a number of things every home-buyer should know before buying a home. There is no sense getting excited over a home purchase without covering all of your bases first. So, let’s get started.
Home-buyer rule 1
Every home-buyer needs to know what they can spend before contacting a Realtor. That means, drop by a lenders office first. I just had a buyer find a house, put an offer in, give an EMD and do a home inspection. Then, I received a note from the lender who had given me a pre-qualification letter 45 days earlier, telling me the buyer wasn’t actually qualified.
Buyers, check your own credit. Go to a reputable lender and have them qualify you. Better yet, get them to pre-approve you. In my case, the lender’s incompetence allowed this buyer to go way too far into the process before realizing the mistake. It cost the buyers money, the Realtor time and money and the sellers time off the market. Check and double-check.
Home-buyer rule 2
Don’t change your credit report in any way other than positive ways. Once you start the home-buying process, stop using credit. Pay your bills on time and don’t add any more debt. Don’t open up any new credit accounts, don’t buy new furniture for your new house, don’t buy a car and don’t take time off of work before closing. Freeze in place. You want your credit report to look better just before closing, and your lender will pull your credit right before closing.
Home-buyer rule 3
Make sure you hire a Realtor who can make things happen. I just had an agent who was too green to be out on her own. She sent an offer to purchase agreement 6 times in 5 days before she got one right. She also missed that they property was being sold “as-is” in the listing. Her clients had a home inspection, which is perfectly fine, but there is a better than average change the seller isn’t going to do anything. When she submitted her 3 pages of repair requests, I had to reminder her that the house was being sold as-is. She was dumbfounded.
Her home-buyer spent money for the report, and again, it’s fine to do them for information purposes when a home is listed as-is, but there is no sense in asking the seller to fix things when he has already made it public knowledge that he will not. Pick someone with a proven track record and negotiation skills. This agent had neither, and it costs her clients money, the home and the seller time off the market.
Home-buyer rule 4
Use the Internet to find your dream home before calling your agent. No agent in any community knows every home in the community. You can glean much information on the Internet before calling your agent. Drive by the properties that interest you and once you’ve settled on an area, home style and price range, then have your Realtor confirm the status of the homes and go shopping. Your agent can set up an automatic update for you that will add to your own efforts. Spend the majority of your time looking at homes online before looking at them in person. You can cut a lot of homes that aren’t right for you this way.
When you’re ready to make the leap into home-ownership, give Cornerstone Business Group, Inc., a call. We are your neighborhood real estate sales pros.