How to Choose a First Time Buyers Agent.
In step 1 we talked about getting pre - qualified. The second step in buying your first home should be choosing a real estate agent. Many first time buyers elect not to use an agent. Unless the buyer is very experienced and or trained in the real estate market this is a big mistake in my opinion.
Why You Should Use An Agent In Buying Your Home
1. While all agents are NOT created equal and there are bad ones and good ones, It is a simple fact that an agent who is trained and licensed in the home selling and buying process can help you save a lot of money and make the process go much faster and smoother.
2. There are strict laws in real estate; both state and federal. Agents are trained to know these laws and can help you avoid getting into legal trouble or worse yet ripped off by shady lenders or sellers.
3. When an agent represents you as a buyer he or she does all the leg work / paper work, negotiating, etc. this leaves you the buyer with much more time to focus on other things such as choosing the right home and arranging for a move.
4. As a buyer, professional representation by an agent doesn't cost you a dime! The buyers agent gets payed by the sellers agent/broker who shares the commission.
These are just a few of the reasons that the first time or even experienced buyer should always seek the assistance of a real estate broker.
Choosing The Right Real Estate Agent
As I mentioned above, there are good agents and bad ones. And it can be difficult to distinguish the good from the bad. However, using the right selection process will assure that you get the best possible agent to represent you in buying your first home.
First of all, don't be lured in by advertising such as by NAR (National Association of Realtors). Don't get me wrong. NAR is a good organization; I myself am a member. I'm simply saying don't make this a criteria in choosing an agent. All that's required of an agent to be a member of NAR and use the Realtor title, is to pay the dues and go through a short ethics training course. And being a member of an organization doesn't make an agent good. I know a lot of great agents who are not "Realtors"
So how do you choose the right real estate agent? Find an agent who is very active in the area where you plan to buy, contact the agent and ask questions such as how many transactions they have handled in the particular market area, are they experienced in working with FHA buyers, etc. If the answers given by the agent are satisfactory then ask for references and check the references they give. Home buyers are normally more than happy to give an honest opinion of a real estate agent they have worked with.
Help Your Real Estate Agent Find The Right Home For You
Once you have chosen a good agent, you can help the agent find the perfect dream home for you by giving them all the information possible about the home you want to buy. Be clear on your criteria. Be sure the agent knows which criteria / home features are an absolute must and which ones are simply a desire that you may be willing to compromise on. This will help your agent find the right home for you much faster and save a lot of time and gas looking at homes that you're not interested in.
Follow this step and it will make your first time home buying experience much easier and help you get the right home.
Wednesday, December 15, 2010
Tuesday, December 7, 2010
Buying Your First Home Step by Step - Step 1 Getting Pre Qualified For a Mortgage
Get Pre-Qualified For a Home Mortgage Loan
Over the years before starting the guide I've had the opportunity to work with many home buyers who were buying for the first time. 90% of those home buyers do not approach the event in a way that is most beneficial to them.
Most of the calls I get from first time buyers have already looked for a home, found one they want, and ready to jump into the process head first.
This is fine except for the fact that they don't know if they can afford the home they've chosen, or if the home qualifies for financing that they need to be able to afford it. Usually they have built up their expectations and dreams around this particular home and many times they end up very disappointed and frustrated.
To avoid this problem the first time buyer should approach the home buying process in the correct steps.
Why you should get pre-qualified for a mortgage first
This is the first step in the home buying process. By being pre-qualified, the home buyer knows exactly how much home they can afford before they begin looking at homes. Not only will this first step help the buyer avoid being disappointed and save a lot of time spent looking at homes they can't afford. There are also other advantages to being pre-qualified for a mortgage before you begin your search for a home. 1. Being pre-qualified will cut the time it takes your lender to process your loan. This will enable you to to close sooner, which will often give you leverage in negotiating the price and save you a lot of money at the end of the day. 2. Many realtors only want to work with those who are pre-qualified. They don't want to spend their time looking for and showing homes to someone who may not even be able to buy. I myself can attest to the fact that working with a buyer who is pre-qualified for a mortgage is a huge motivator to work hard in finding the right home for a client.
Choosing A Lender
Choosing a lender is a step within the first step of buying your first home; and indeed an important step. Home mortgage lenders vary widely in the interest rates and terms they offer. So choosing the right one can save a ton of money. First of all, if you plan on going for an FHA or other government insured loan, you should make sure the lender you are considering is qualified to make this type of loan. By the way, it is advisable to seek a government insured loan as this type loan is normally much easier to qualify for and can get you a lower interest rate as well as a lower down payment.
If you plan to search for a lender online its advisable to use a site such as Lending Tree as lenders who compete for your business here will likely be pre-qualified by the sites owners to make FHA, VA or other government insured loans. Once you choose the lender, let them know that you want to become pre-qualified for a mortgage.
Buying a home is not as complicated as you may think. The first time home buyer needs only to follow the correct procedure step by step and in the correct order. Follow this first step and the steps I'll be telling you about in the coming days; and not only will your first time home buying experience be much easier and more pleasurable, but you'll save yourself some money as well.
Over the years before starting the guide I've had the opportunity to work with many home buyers who were buying for the first time. 90% of those home buyers do not approach the event in a way that is most beneficial to them.
Most of the calls I get from first time buyers have already looked for a home, found one they want, and ready to jump into the process head first.
This is fine except for the fact that they don't know if they can afford the home they've chosen, or if the home qualifies for financing that they need to be able to afford it. Usually they have built up their expectations and dreams around this particular home and many times they end up very disappointed and frustrated.
To avoid this problem the first time buyer should approach the home buying process in the correct steps.
Why you should get pre-qualified for a mortgage first
This is the first step in the home buying process. By being pre-qualified, the home buyer knows exactly how much home they can afford before they begin looking at homes. Not only will this first step help the buyer avoid being disappointed and save a lot of time spent looking at homes they can't afford. There are also other advantages to being pre-qualified for a mortgage before you begin your search for a home. 1. Being pre-qualified will cut the time it takes your lender to process your loan. This will enable you to to close sooner, which will often give you leverage in negotiating the price and save you a lot of money at the end of the day. 2. Many realtors only want to work with those who are pre-qualified. They don't want to spend their time looking for and showing homes to someone who may not even be able to buy. I myself can attest to the fact that working with a buyer who is pre-qualified for a mortgage is a huge motivator to work hard in finding the right home for a client.
Choosing A Lender
Choosing a lender is a step within the first step of buying your first home; and indeed an important step. Home mortgage lenders vary widely in the interest rates and terms they offer. So choosing the right one can save a ton of money. First of all, if you plan on going for an FHA or other government insured loan, you should make sure the lender you are considering is qualified to make this type of loan. By the way, it is advisable to seek a government insured loan as this type loan is normally much easier to qualify for and can get you a lower interest rate as well as a lower down payment.
If you plan to search for a lender online its advisable to use a site such as Lending Tree as lenders who compete for your business here will likely be pre-qualified by the sites owners to make FHA, VA or other government insured loans. Once you choose the lender, let them know that you want to become pre-qualified for a mortgage.
Buying a home is not as complicated as you may think. The first time home buyer needs only to follow the correct procedure step by step and in the correct order. Follow this first step and the steps I'll be telling you about in the coming days; and not only will your first time home buying experience be much easier and more pleasurable, but you'll save yourself some money as well.
Wednesday, December 1, 2010
Welcome to First Time Home Buyers Guide
I have been a real estate professional for many years. Over the years I've seen first time home buyers make many mistakes that ended up costing them thousands of dollars; and some have even lost their homes because of mistakes that could have easily been avoided if they had only done a little research before taking that leap. Hence my purpose for this blog.
I'm not here to sell anything or promote my services. My goal is simply to help first time home buyers become educated on the home buying process, and learn how to avoid the many pitfalls that can turn the American dream into a nightmare.
Please be aware that any and all information that I give here is general and may or may not be applicable in your particular state. I'm not an attorney and any advice, tips or techniques I discuss are not intended to be any form of legal advice.
Now that being said, I urge you sign up for email alerts or get a feed to the blog. In the coming weeks I'll be giving lots of tips and information on financing, programs, government incentives, fha loans and much more for first time home buyers.
I'm not here to sell anything or promote my services. My goal is simply to help first time home buyers become educated on the home buying process, and learn how to avoid the many pitfalls that can turn the American dream into a nightmare.
Please be aware that any and all information that I give here is general and may or may not be applicable in your particular state. I'm not an attorney and any advice, tips or techniques I discuss are not intended to be any form of legal advice.
Now that being said, I urge you sign up for email alerts or get a feed to the blog. In the coming weeks I'll be giving lots of tips and information on financing, programs, government incentives, fha loans and much more for first time home buyers.
Subscribe to:
Posts (Atom)