You Don"t Need a Real Estate Training Degree to Buy a House!
There are so many so called self proclaimed "experts" out there today that the first time home buyer can feel quite overwhelmed, confused and frustrated even before they have stepped foot into their first house.
Some might start shouting "just shut up and buy the house" to each other, yes, things can get out of hand sometimes, but with a little patience and a little education ahead of time, it can be the most exciting and wonderful time in a person's life.
To keep the process as simple as possible, there are a few steps that can be taken in preparation for the home buying process that will leave the first time home buyer feeling a lot less stressed and a lot more educated.
With knowledge brings confidence and a confident and educated buyer is a happy and successful one! Here are a few steps and strategies a new home buyer can use to help ease the stress of their home purchase: * Check your own credit report.
Your credit will be checked by the mortgage broker when the time comes to pre approve you, however, it is a good idea to check your own credit before hand, just in case there is anything showing on the report you do not agree with, you can contact the credit bureau that shows the report and try to get it straightened out ahead of time.
* Talk to a mortgage representative.
If planning on obtaining a mortgage to purchase a home, the first and most logical step to take is to find out how much of a mortgage can be afforded.
Too many times a buyer thinks they know what they can afford, they find a home they love, only to come to find out that they are unable to afford the mortgage payments.
The mortgage representative will not only be able to determine how much of a mortgage is suitable to your income, they will be able to then determine what price range you will be safe looking in.
So if a person thought they could afford the four bedroom colonial down the street, but then come to find they can only afford the 2 bedroom ranch, at least they found out immediately instead of setting themselves up for disappointment.
Have the mortgage broker pre approve you, NOT pre qualify you.
There is a difference and a pre approval will hold water and will usually be needed anyway to be submitted along with your offer to purchase or contract of sale.
* Now that the price range is determined as to what is affordable, the next step would be searching the internet for homes.
That's assuming the area in which the person wants to live has already been predetermined.
Once a few homes are chosen to see call a local Realtor and ask them to check the availability of the homes chosen.
Be wary of a real estate agent that tries to persuade you to see a home that doesn't appeal to you.
If they show you something that appeals to you by all means go see the house but a pushy agent that wants to show you a home that you don't really think you will like just say no! Chances are they are choosing that home with their own intentions in mind, perhaps the house offers a buyer's agent incentive or a higher commission rate, that is not your concern nor should it be theirs.
Your needs come first, not theirs.
* Ask the real estate agent to walk you through the home buying process.
There are things the real estate agent will talk to you about that your mortgage broker may not.
Things like timely escrow payments and home inspections, attorney review periods, etc.
typically may not come up in the meeting with the mortgage broker, but these things mentioned should be run through with the home buyer so they know what to expect during the transaction.
* When the home is found and an offer is about to be drafted, it is a good idea to get in touch with an attorney at that time.
Make sure they are taking new clients and ask them what their fee is for handling a buyer real estate transaction.
Watch out for attorney's that are not practicing real estate as their primary field.
A trial attorney that is hired to do a real estate transaction could wind up not being available to close the home and that could delay the closing, not to mention expire the mortgage commitment date.
Stick with a fixed rate residential real estate attorney when at all possible.
Don't be afraid to ask questions.
You have an inspector, mortgage broker, real estate agent and attorney all working for you.
Ask questions as you go along so by the time you get the keys to your new home you will feel like an expert!
Some might start shouting "just shut up and buy the house" to each other, yes, things can get out of hand sometimes, but with a little patience and a little education ahead of time, it can be the most exciting and wonderful time in a person's life.
To keep the process as simple as possible, there are a few steps that can be taken in preparation for the home buying process that will leave the first time home buyer feeling a lot less stressed and a lot more educated.
With knowledge brings confidence and a confident and educated buyer is a happy and successful one! Here are a few steps and strategies a new home buyer can use to help ease the stress of their home purchase: * Check your own credit report.
Your credit will be checked by the mortgage broker when the time comes to pre approve you, however, it is a good idea to check your own credit before hand, just in case there is anything showing on the report you do not agree with, you can contact the credit bureau that shows the report and try to get it straightened out ahead of time.
* Talk to a mortgage representative.
If planning on obtaining a mortgage to purchase a home, the first and most logical step to take is to find out how much of a mortgage can be afforded.
Too many times a buyer thinks they know what they can afford, they find a home they love, only to come to find out that they are unable to afford the mortgage payments.
The mortgage representative will not only be able to determine how much of a mortgage is suitable to your income, they will be able to then determine what price range you will be safe looking in.
So if a person thought they could afford the four bedroom colonial down the street, but then come to find they can only afford the 2 bedroom ranch, at least they found out immediately instead of setting themselves up for disappointment.
Have the mortgage broker pre approve you, NOT pre qualify you.
There is a difference and a pre approval will hold water and will usually be needed anyway to be submitted along with your offer to purchase or contract of sale.
* Now that the price range is determined as to what is affordable, the next step would be searching the internet for homes.
That's assuming the area in which the person wants to live has already been predetermined.
Once a few homes are chosen to see call a local Realtor and ask them to check the availability of the homes chosen.
Be wary of a real estate agent that tries to persuade you to see a home that doesn't appeal to you.
If they show you something that appeals to you by all means go see the house but a pushy agent that wants to show you a home that you don't really think you will like just say no! Chances are they are choosing that home with their own intentions in mind, perhaps the house offers a buyer's agent incentive or a higher commission rate, that is not your concern nor should it be theirs.
Your needs come first, not theirs.
* Ask the real estate agent to walk you through the home buying process.
There are things the real estate agent will talk to you about that your mortgage broker may not.
Things like timely escrow payments and home inspections, attorney review periods, etc.
typically may not come up in the meeting with the mortgage broker, but these things mentioned should be run through with the home buyer so they know what to expect during the transaction.
* When the home is found and an offer is about to be drafted, it is a good idea to get in touch with an attorney at that time.
Make sure they are taking new clients and ask them what their fee is for handling a buyer real estate transaction.
Watch out for attorney's that are not practicing real estate as their primary field.
A trial attorney that is hired to do a real estate transaction could wind up not being available to close the home and that could delay the closing, not to mention expire the mortgage commitment date.
Stick with a fixed rate residential real estate attorney when at all possible.
Don't be afraid to ask questions.
You have an inspector, mortgage broker, real estate agent and attorney all working for you.
Ask questions as you go along so by the time you get the keys to your new home you will feel like an expert!
