Buyer Tips

• The first step in the home buying process should start with the mortgage pre-qualification process. This is an often over looked aspect of home buying. When making an offer everything is communicated via the written word. When a seller is reviewing offers one of the items looked for will be a pre-qualification letter from a lender. This document will inform the seller that you are a serious buyer and have done your homework and are qualified to purchase their property. Obtaining a pre-qualification letter in most cases can be provided after a 5-15 minute phone call or visit with a lender.



• A lender will ask for your social security number to run your credit and ask some questions about income and debt load. With this information the lender will find out what programs are available to you for your purchase. Having this letter taken care of in advance will save you time an effort when looking for your home as well as set up a price range for your purchase.



• The second step is to make a list of what features you want in a home. There should be 2 lists. The first is a need list. This list will be the basics for what you need in your new home. The easiest way to think of what should be on this list is what you can not live with out. For example you need 3 bedrooms, but more would be nice you put 3 bedrooms on the list. The second list is the wish list and that is everything above your minimum needs that you desire in your new home. For example a pool, fireplace, 3 car garage and so on. Your Realtor will use this information to assist you in finding your new home.



• Next you will want to interview realtors to work for you in finding your home. It is important as a buyer to have your own realtor that is dedicated to your goals and needs. An agent that works for the buyer will almost always receive their compensation from the seller when the home is sold. So typically there should be no cost associated with an agent representing you on your purchase. When interviewing agents look for an agent that meets your needs with questions like are they full time or part time? How long have they been a realtor? How many people have they helped in the home buying process? Are they familiar with the local schools, places of worship, communities and amenities available in the areas that you are interested in? Are they available when you need them? If they are not available do they have a back up for support (another realtor or an assistant to cover them when not available) ? Do they have a support group of professionals to assist buyers like a home inspector, a lender, a pest company, a handyman, an escrow officer etc.?



• Once you have selected your Realtor you will start the home shopping process. Depending on the area being covered you could typically expect to view between 1-4 homes an hour. When looking at a home if you know it is not the property for you do not spend any more time than needed at the home. This will save you time and allow you to see more homes.



• When viewing homes make a top 3 list and give every home a nickname. This will make it easier to remember the homes at the end of the day. If you get to the 4th home and you already liked the first 3 you have to make a decision. Does one home come off of the list for number 4 to go on or does number 4 not make the cut. The nickname should be something associated with a feature of the home like Big Fireplace or Beach Pool etc.



• Now comes the time to review the homes and make an offer. When making an offer it is important to realize that for an offer to be well received by the seller there typically needs to be an earnest deposit. A rule of thumb would be 1% of the purchase price. Strategies and customs will vary based on regions so your Realtor will be the best source of advice on how much the earnest deposit should be where the home is located.



• Once your offer is accepted it is important to make a complete investigation of the property to make sure that it satisfies all of your needs and expectations. It is very important to hire your own home inspector. Although licensing is not common for home inspectors in most states, there are independent associations that home inspectors belong to that uphold a certain standard of service and competency. One of these organizations is the American Society Of Home Inspectors or A.S.H.I. You could expect to pay between $250.00 and $500.00 for a typical residential home inspection. From this inspection there may be additional recommendations to have certain aspects of the home checked into further. Like the air conditioning, swimming pool, electrical etc. The home inspector will typically recommend a specific licensed professional to check into any concerns arising from the home inspection. As a buyer it is better to invest $500.00 in an inspection and uncover potential major issues in a home purchase than to avoid an inspection and run the risk of having expensive issues uncovered after you move in. If an inspection turns up major issues to a property and the seller is unwilling to make any repairs or adjustments in price it may be better to cancel the sale and consider your $500.00 a good investment that just saved you potential thousands of dollars in repairs.