by Teresa Larson, 20+ years year real estate experience
Buyers before going out to look at properties you need to get qualified for a loan first. Find out exactly what you can qualify for and afford from a mortgage lender. Trying to estimate based on online resources often gives you a different number than the actual process. The lender needs to run your credit report to determine which kind of loan you can qualify for and what your interest rate will be. This will affect your future house payment. All mortgages these days are based on your credit score and your debts such as credit cards, student loans, car payments, child support, loans you have co- signed for to help others and so on. There are some questions that will determine what you can qualify for. These questions are looking for things that may help you or prevent you from qualifying for a loan. Purchasing a home is a very individual process beginning with the qualifying. A good lender, be it your bank, credit union or a mortgage broker can help you with home loans. Make sure the lender is willing to give you a pre- approval letter that says they have reviewed your credit and income along with debt ratio to income. Once you know what you can qualify for you can look for homes and properties with the assurance that you can qualify. You have the proof to back it up come offer time on that property you want.
Thinking of buying choose a real estate agent- Realtor © to help you. Realtors are governed by a code of ethics. Your real estate agent can help you decide on a good lender and get started with your real estate adventure. Agents should be willing to give you the names of some good lenders in your area so you do not get caught up with a lender that makes promises they cannot deliver. After you have prequalified for a home you can begin looking at properties. Once you find the home you need to do some research. This is another reason why a real estate agent can come in handy. Once you have viewed properties and selected a home that is perfect for you. Take the time to look at current similar sold properties that have sold within 90 days. If possible look at homes within a one mile radius that have above ground square feet that is within a 5-10% of the property you are looking at. The comparison properties should also be within 5-10 years of age from the property you are offering on. This will help you determine a good offer price for the home. The agent you choose to work with should be willing to do some research on the home and share that research with you. The home will need to appraise for your offer price in order for the financing to work out. Appraisers should use properties within similar criteria as listed. Your real estate agent can also share this information with the seller’s agent helping to justify any price disparities between the buyer and seller. Having your own agent to negotiate for you is in your best interest. People and circumstances are so different. You as a buyer might be super excited. The seller may be super sensitive and you might not be able to keep things together. There is a lot involved as far as follow through, inspections and deadlines for both buyer and seller. A third party – real estate agent-Realtor© working in your behalf is beneficial.
©Teresa O Larson PC, 2014
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