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Ready to start your home search? Here’s where to begin.

1. Get an idea of your affordability

Most would-be home buyers need a mortgage to purchase a home. While the process has gotten easier as we’ve moved farther away from the financial and lending crisis, it can still be challenging if you’re not prepared.

Get in touch with a mortgage lender who can help guide you to what loan program or offerings will work best for your situation. They’ll analyze your situation and help you determine what you can afford.

Some buyers need to repair their credit, save more money, or shift money around in order to get approved fora loan. Use the next few months to address any financial issues.

 

2. Search and discover

The home-buying process often occurs naturally and may begin a year or more before the actual purchase. Most people start by looking at homes online. I encourage researching neighborhoods and starting to get a feel for what prices and how quickly homes are selling for in certain areas.

 

3. Dive in!

Once things start getting more serious, it’s time to start looking for a Realtor who will work well with you. Finding a great agent that has your back will prove invaluable.

Go look at homes in person. Yes there’s tons of data and pictures online, but seeing a bunch of homes in person is very important. The more homes you see, the more you will know about your local real estate market, and the more confidence you will have when that dream house comes along.

How to Compete Against All Cash Offers

  • Show your financial strength Make your competitive offer as strong as cash by providing the seller the confidence they need to accept your offer. Provide as much financial information with your offer as possible. Include bank statements, pay stubs, and credit reports. Overload the seller to show them that you’re as solid as the cash buyer.
  • Ask your lender to get a head start on the mortgage. See if your mortgage professional can move the process along sooner. I can help with lenders that can essentially fully underwrite your loan, allowing you the opportunity to write an offer without a loan contingency.
  • Shorten the loan and appraisal contingencies. The shorter your contingency periods the more confident the seller will feel that you will close on the sale.
  • Pre-order an appraisal. This may not be as easy with a bigger bank. But smaller banks, direct lenders or mortgage brokers can line up the appraisal in advance. At the time your offer is written, tell the seller the appraisal has already been ordered. If you can get the appraiser out within 24-48 hours of coming to terms with the seller, it’s half the battle.
  • Write an offer with a strong purchase price. Cash buyers nearly always expect a discount from the seller simply because they’re offering cash and there’s less risk of falling out of escrow for the seller. To increase your chances, it may mean paying a little more than you think the home is worth. If a seller is faced with a few thousand dollars’ difference, the seller probably wouldn’t risk it. But what if your offer is five percent higher than
    the cash buyer’s? The seller might seriously consider. If you plan to live in the house for many years and it’s the home of your dreams, paying a little more to get the deal might only translate into $20 per month over the course of a long-term mortgage.

4 Myths about Realtors

1. Agents get a 6 percent commission, no matter what

Most people assume that their agent pockets the entire commission and that commission is a set percentage.

Truth

First, it’s helpful to know that the seller pays the commission, and they split it four ways: between the two brokerages and the two agents.

Finally, the brokerage commission isn’t set in stone and sellers can sometimes negotiate it.

 

 

2. If you start with an agent you have to work with them.

If you’re a seller, you sign a contract with the real estate agent and their brokerage which includes a contract term. Once you sign the agreement, you could, in fact, be “stuck” with their agent through the
term. But that’s not always the case.

Truth

If things aren’t working out, it’s possible to ask the agent or the brokerage manager to release you from the agreement early.

Buyers are rarely under a contract. In fact, buyer’s agents work for free until their clients find a home. Sometimes a buyer never purchases a house, and the agent doesn’t get paid.

A sit down or phone consultation is always recommended to help determine if you’ll be a good fit to work together. Take your time, do research, and make sure you’re comfortable with the person you’re
working with!

 

 

3. All agents are the same

Many people think of “agent” as a generic term and that all agents are created equal.
Truth
A great local agent can make an incredible difference, so never settle. The right agent can save you time and money, keep you out of trouble and protect you.

Do your research by checking reviews online, asking friends and family for referrals, and looking up past sales experience.

 

 

4. You can’t buy a for sale by owner (FSBO) home if you have an agent

In the past, sellers who wouldn’t deal with any agents tried to sell their home directly to a buyer to save the commission.

Truth

Smart sellers understand that real estate is complicated and that most buyers have separate representation. Many sellers will offer payment to a buyer’s agent as an incentive to bring their buyer clients to the
home.

If you see an FSBO, don’t be afraid to ask your agent to step in. Most of the time the seller will compensate them, and you can still be guided through your home purchase with an experienced professional who has your best interests in mind.