GET YOUR GUIDE
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Buying a home will probably rank as one of the biggest personal investments one can make.
Being organized and in-control will contribute significantly to getting the best home deal possible with the least amount of stress. It’s important to anticipate the steps required to successfully achieve your housing goal and to build a plan of action that gets you there:
>>> First, ask yourself how much you can afford to pay for a home. If you're not sure on the price range, connect with one of our MORTGAGE EXPERTS.
>>> Please, have no fears about financing! A pre-approval lets you know how much you can afford, & sets our price range which helps us in the home search. Getting a pre-approval truly helps alleviate some of the anxieties that come with home buying by providing you with the amount of home you qualify for & at what rate, with what monthly payment, & the amount of cash you’ll need to close which helps us negotiate on your behalf.
>>> Next, ask yourself where you want to live and what the best location for you and/or your family is. Consider convenience for all family members' proximity to work or school along with crime rate of neighborhoods, as well as types of homes.
Work w/a Legitimate Lender.
Get a Legitimate Pre-Approval.
Searching for a home without a legitimate pre-approval has proven to be one of the least effective methods of landing the dream home. General questions about your income, debt, assets, & credit history will provide the roadmap to your mortgage approval.
You should know there's a big difference between the two:
PRE-QUALIFICATION means that the lender may have your credit score & the details of your employment, income, and assets; however, nothing has been verified. This is NOT a Legitimate Pre-Approval. Verification of those items is required to close on a home, so you might as well get all the documentation to your lender BEFORE you start your home search. Otherwise, you might be looking at homes that you cannot afford.
PRE-APPROVAL means that you have applied for a mortgage; you have filled out the mortgage application, have your credit report, & have verified your employment, assets, etc. When you are Pre-Approved, you know exactly what the maximum loan amount will be, as well as your monthly payment & cash to close. That helps significantly while making & negotiating offers.
Whether you work with our in-house lenders or your own, the key is to be pre-approved with a legitimate lender. While you're not required to use our PREFERRED LENDER, it sure can make a huge difference when it comes to ease of process & saving you time & often times money.
AVOID LENDERS WHO DON'T COMMUNICATE
HOT, COLD, & "NORMAL" MARKETS
HOT MARKET
It is even more crucial to be prepared & to be ready as a buyer when the market is hot. It can be easy to get caught up in the bid for a home, but if you are prepared (preapproved, solid in price range, realistic about your needs), it is easier to remain focused on your housing needs & price range.
COLD MARKET
In a "Cold" Market, houses may be listed for more than a year & the prices of houses listed may drop considerably. This market is advantageous to the buyer. As a buyer, you have the time to make an offer that works in your best interest. It is not uncommon to low-ball & to find that sellers are accommodating to meet your needs.
Keep in mind that even though this market is a great time for buyers, you do not want to lose your dream home by being unrealistic. Your goal is to get your dream home at the best possible price.
In a normal market, there is a fairly large number of homes available & an average number of buyers. This market does not necessarily favor the buyer or the seller. A seller may not have as many offers on their home, but he or she may not be desperate to sell either. Again, it is the buyer’s responsibility to be prepared.
During a normal market, the chances to negotiate are higher than in a hot market. As a buyer, you can expect to make offers at lower than the asking price & negotiate a price at least somewhat less than what the sellers are asking.
DON'T KILL YOUR DEAL!
Don’t go on a spending spree using credit if you are thinking about buying a home, or in the process of buying a new home. Your mortgage pre-approval is subject to a final evaluation of your financial situation.
Every $100 you pay per month on a credit payment could cost you about $10,000 in home eligibility. For example, a car payment of $300/month could mean that you qualify for $30,000 less in a mortgage.
Even if you have accumulated enough savings, you should consider not making any large purchases until after closing. The last thing you want is to know that you could have purchased a new home had you curbed the urge to spend.
In this ancient video from when they were much younger, Amanda & Manny poke some fun at mortgage deal killers: