1. How do I become pre-qualified? Can you recommend a trusted loan officer? How long have you worked with him/her?
Despite what first-time buyers expect, pre-qualification is often a snap. It's often free and quick to confirm; and yet, it greatly increases your bargaining position when it comes time to put a contract down on a home. The fact of the matter is that if I hadn't sought pre-qualification first, I probably would have lost out on my house, even my contract reached the listing agent's hands first, and even though the price offered on my contract matched that of other interested buyers. 2. What are my assets -- primary and supplementary sources of income, investments, etc. -- all of which will convey to my loan officer that I'll be able to make the monthly mortgage payments on my home?
Consider such sources as overtime pay, bonuses, commissions, alimony, child support, disability, weekend jobs, etc. You'll also need to prove to your loan officer that you've established a steady history at work -- that you've remained at your current and previous places of employment for a respectable period, and that your income is steady and not subject to cyclical or seasonal factors. 3. Can I obtain a copy of my credit report?
It's almost frightening how detailed our credit reports are. Your objective is to put before your loan officer a two-year history of prompt payments on all of your debts. If you're young, you might very well have an immaculate credit history (restricting yourself to a single credit card is a good start); although young people certainly have been known to charge their way to bankruptcy. If you've ever fallen behind on your payments for a legitimate reason such as illness, speak to your loan officer and work together to make sure you provide a thorough explanation. Being forthright could result in your credit history being cleared, paving the way toward loan approval. 4. What are my options for loan programs and downpayment terms?
Many first-time buyers are opting to take advantage of the increasingly popular 3% down bare minimum. Twenty percent is great if you can swing it, but particularly for first-time buyers, coming up with 20 percent of the sale price can be an impossible dream. Today more than ever, it's becoming easier for first-timers to become qualified and obtain reduced closing cost options. Investigate your options concerning interest rates -- either fixed, remaining the same for the life of the loan (15 or 30 years) or adjustable (fluctuating or reducing according to national interest rates). In an accompanying piece, we'll discuss a few more critical questions first-time homebuyers should ask themselves, their Realtors and/or their loan officers. |
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Buying a home is a major investment. You can avoid making serious mistakes by following these 10 Tips.
Take your time. Don’t allow others to rush you through the home buying process. Events will happen quickly, but always take time to read documents and ask questions until you understand the services you are buying and the contracts you are making.
Negotiate. Don’t assume all real estate fees are fixed. You won’t save any money if you don’t ask. You may not get a break, but it doesn’t hurt to ask.
Make a game plan. Doing some preliminary planning before you begin your home search will make the entire process more manageable and less overwhelming.
Know yourself and your finances. Only you know what monthly payment you are comfortable with. To reach this determination, spend time identifying your resources and expenses before you begin the home-buying process.
Pre-qualify. Pre-qualifying will let you know what size loan a loan officer would approve you for, so you can narrow your home search to only those in your price range.
Wish list. Making sure you end up with the right home involves figuring out exactly what features you need want and don’t want in a home. Before starting your search, you should make a “wish list” to decide which features are absolutely essential and which are nice “extras” if you happen to find them.
Think. Use your head, not your heart, when looking at houses. Don’t buy a house on impulse.
Get to know your area. Take time on a weekend and drive through a neighborhood you’re considering. Inspection. For your protection, request a professional inspection. If the inspection reveals serious problems, you can then cancel your offer and get your earnest money deposit refunded.
Read. Read and understand the purchase agreement. It’s a contract for what is probably the biggest purchase of your life.
Now you’re ready to find your dream home call :
JOSE RODRIGUEZ ,
CELL: 760-792-0292
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MORE TIPS
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Answer: Know the seller's motivation to sell. This will enhance your negotiating position. Sellers who must move quickly due to a job transfer, divorce, or contract on another home, are more inclined to accept a lower price to speed the process along.
Remember, too, that the listing, or asking, price is what the seller would like to receive for the home. It is not necessarily what the seller will settle for. So know value. Before you make an offer, check recent sales and listing prices of comparable neighborhood homes and compare them to the seller's asking price. Other tips:
• Be flexible. Never say, “take it or leave it.” That can sour negotiations and ruin the deal.
• Never show your hand or reveal your next step.
• Each time you increase your offering price ask for something in return, such as repairs, appliances, even lawn furniture.
• If you plan to pay cash or have a tentative commitment for a loan, use your strong financial position as a negotiating tool.
• Don’t let emotions such as pride, fear, love, and anger get in the way of negotiating the best deal. Leave irrational feelings at home.
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