1. Get pre-approved for a loan.
Most sellers require a pre-approval letter along with your written offer. You should have it ready so that when you find the right home there is no delay in receiving your offer. There is a lot of confusion about pre-approved vs. prequalified … even real estate agents sometimes use the terms interchangeably! But pre-approval is the real deal. With pre-approval, the lender has foreclosed on your credit and you will typically have filled out a loan application and provided documentation to the lender, who will then inform you of the amount for which you are approved. With prequalification, you will usually have provided the lender with some verbal information about your credit, income, and assets, and the lender will give you an approximate amount for which you are likely to be approved. Sometimes a prequalification letter will suffice; The main thing is to talk to a lender before you start looking for homes.
2. Decide if Short Sales and Bank Ownership is for you.
Don’t waste time looking for properties that don’t meet your home buying needs. Each of these types of sales has its own challenges for the home buyer, so it is important to know the basics of each and decide if any fit your game plan. For example, if you need to get a new home in a fairly short period of time, a short sale may not work for you, as they often take many months to complete. And bank properties often need work, which can add to the overall cost or make it difficult to obtain certain types of loans. If you can be patient with a short sale, or have the ability and / or resources to fix up a bank owned home, these could be great avenues to explore. If not, tell your Realtor® to skip short sales and bank-owned homes.
3. Check the neighborhoods ahead of time.
One of the best things you can do at the beginning of your home buying project is to take a weekend or two and tour various areas and subdivisions, especially if you are new to the area. Tell your real estate agent which neighborhoods are the most attractive to you; It will really help you understand the type of home you want and your taste in homes. Some buyers look for new homes in areas with many families and children; others prefer quiet and “mature” neighborhoods. Fortunately, there is something for everyone, and a real estate agent who has a lot of experience and knowledge in the local area will go a long way in finding those hidden gem neighborhoods.
4. Spend time looking for a home.
Don’t plan on going to screenings alone on the weekend; In this market, that is not a winning strategy. In reality, there is a shortage of affordable homes in good condition, and those that are also in a desirable location sell almost immediately. If you’re serious about finding your dream home, clear the covers and be ready to jump in when your real estate agent tells you that a new property that meets your needs has just hit the market. Most importantly, be prepared to make an offer if it is the right home. It could easily go away in a day or two.
5. Don’t waste time on houses that are already sold!
Do you spend your free time looking for a home on Zillow, Realtor.com, or Trulia? Or hanging around and calling for houses with signs out front? So you’ve probably already learned that a large number of those homes, which appear to be for sale, are not actually available. Very often they are “under contract,” which simply means that another buyer made an offer that was accepted by the seller. These are often still listed as available on public real estate websites, but in most cases the sale will close within a few weeks. Work with a Realtor® who will set up a custom search for you so that you can focus only on those homes that meet your criteria and are still available.
6. And of course, the most important thing is to find a truly professional and customer-oriented Realtor!
A great agent will make your home buying experience more seamless and enjoyable. Get referrals from friends or family who recently had a good home buying experience, or call or email some local agents. See which ones respond and return your call or email immediately, and get an idea of how professional and knowledgeable they are about the local area and current market conditions. Also see their commitment to their clients in terms of training beyond what is required to obtain a real estate license. Real estate agents® who work diligently on behalf of their clients have often invested in advanced training and designations such as:
-
GRI – Graduate Realtor Institute, only 19% of Realtors®
-
ABR – Accredited Buyer Representative, Only 15% Realtors®
-
CRS – Certified Residential Specialist, only 10% Realtors®
______________________________________
We hope these tips are helpful and we wish you success in your home search.