CENTURY 21
Blog
Buyer's Tips
April 19th 2009
Here's a few tips for those wishing to buy real estate. Enjoy!

Use a Buyer's Agent
It's important that you choose an experienced agent who is there for you. Your
agent should be actively finding you potential homes, keeping you informed of the
entire process, negotiating furiously on your behalf, and answering all of your
questions with competence and speed.

First, find an agent who represents you and not the seller. This is beneficial during
the negotiation process. If you are working with a buyer's agent, he or she is
required not to tell the seller of your top choice. In addition, he or she is also
focused on getting you the lowest asking price.

Also, when you use a buyer's agent, you will see more properties. Not only are they plugged into their Multiple Listing Service, but also they are actively finding homes that are listed as FSBO, or homes that sellers are thinking about listing.

Why You Should Not Make Any Major Credit Purchases
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.

Getting a Legitimate Lender and Getting Pre-Approved
It used to be that buyers could go house shopping and when they have found their
dream home, then they go to get pre-approved. However, in today's market, that
has proven to be one of the least effective methods in landing the dream home.

Most lenders can pre-qualify you for a mortgage over the phone. Based on general
questions about your income, debt, assets, and credit history, lenders can estimate
how much mortgage you qualify for. However, being pre-qualified and pre-
approved are different things. Pre-approval means that you have applied for a
mortgage; you have filled out the mortgage application, received your credit report,
and verified your employment, assets, etc. When you are pre-approved, you know
exactly what the maximum loan amount will be.


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