WHAT DO I NEED TO DO BEFORE I THINK ABOUT PURCHASING A HOME?
Often when people are considering buying a home whether it be a first time investment or another home, they believe they can just purchase one like buying a new item for a kitchen. That is not usually the case. Here are some things you should do before you buy a home.
Check with a lender to see what you qualify for; be ready to provide:
- Annual Income
- Down Payment
- Other loans and expenses (Credit cards, vehicles, other homes, etc.)
- Tax payments
- Child support payments
- Dividends
*Note: Some first time home buyer loan programs do not require a down payment.
Do I need to be pre-qualified?
It is generally a good idea to get pre-qualified.
Many sellers require a pre-qualification letter with your offer to purchase. So you should have that readily available when it comes time to make an offer. In general it will make your offer look stronger.
What is the cost of pre-qualification?
There is no cost associated with getting pre-qualified.
What is pre-qualification?
Prequalification is where you have spoken to a lender about a possible home loan.
This is when you have spoken to a lender, usually over the phone. You will provide him with the information described above. They in turn will give you an estimate of what they believe you would qualify for if all the information you have given them is accurate.
Getting Pre-qualified DOES NOT MEAN YOU ARE automatically QUALIFIED!!
People often think because they are pre-qualified they can get the loan when they find the home of their dreams. That is not true. At this point in the loan process they have not run a credit check, or verified any of the information you have provided. There may be things on your credit report that are inaccurate or that you have forgotten about that may inhibit the loan process, or affect the loan amount.
If I find a home that is not listed by you can you still show it to me?
The short and long answer is YES! I am able to show you ANY home, new or resale, no matter who the listing broker is. If you see a home advertised in the newspaper, or if you drive by a home that interests you, please call me! If you visit an Open House or a New Home Community, please tell the seller's agent in the home that I am representing you. Remember, home information is always available to me, even if it is not a Coldwell Banker listing.
When we find a house we like how do we buy it?
It is a many step process here is a brief overview of the process:
You will need an earnest money check to accompany the Offer to Purchase. This may be in the form of a personal check, or in some cases a certified check.
A minimum of 1% of the sales price is deemed adequate in most cases.
When your written Offer to Purchase is presented to the seller, he has three choices:
- He can accept your offer
- He can reject your offer
- He can make a counteroffer.
Negotiations after the initial written offer are conducted verbally until an agreement is reached.
When the seller accepts your offer, or you accept his counteroffer in writing, you have a binding contract for sale on that property. Your earnest money will be deposited in the listing broker's trust account to be held until closing.
Making the Right Choice
Is it best to make a really low offer at first?
If your offer is too low you may take some unwanted risks.
It is important to remember that if you make a low offer on a home and the offer is rejected or countered, another prospective buyer may submit an offer that may be accepted by the seller before you have the opportunity to submit another offer or accept the seller's counter to your offer. I have even heard of experiences where a buyer made a low offer to the seller, and the seller was insulted and refused to entertain any more offers from the client.
Would it be in my best interest to work with several Realtors® and not just one?
It is in YOUR best interest to work exclusively with me.
I have access to every home that is in the Maryland Multiple Listing Service. I am self-employed, not on an expense account, and will be paid only when I find the right home for you. Your loyalty is appreciated, and in return, you will receive the maximum in service from me and my team. All of my time and professional advice, experience, and assistance is FREE to you!
*Information Courtesy of Realtor.com