If I was Buying a new Home-I Would…..?

So you want to buy a new home and are looking for some advice on things. We are a 23 year Mortgage Lender, and guarantee the following home buying tips will save you not only money but also save you home buying stress.

Get Pre-Approved for A New Home Mortgage

Don’t even think about buying a new home until you have taken the time to get pre-approved for a new home loan. This process could take as little as an hour or as long as months. Don’t be satisfied with just a pre-qualification. In the qualification process, the Lender will just take the information you submit and tell you how much payment you can afford. When you go thru the full approval process, the lender will pull your credit, determine your debt to income or DTI, and tell you if pre-approval for the new home loan is possible. Little things like something showing up on your credit report you paid months or even years ago can be addressed at this time. Have a student loan with a deferred payment? The amount of the debt must be used at 5% of the outstanding balance added to your debt for mortgage qualification. There are many other things that can effect the approval. Let’s say you have an item you have disputed in the past. That item is removed from your credit score as long as it is disputed. In a qualification, your score looks sufficient but in the approval, that disputed item must be undisputed and the resulting FICO score will be used to determine if you are approved. The list of issues is long and only a seasoned mortgage professional can help you.

There are FHA home loans, VA home loans, conventional and many other options to consided in a new mortgage.

Selecting a Real Estate Agent

Never go house hunting without the assistance of a local real estate agent. When you select who will represent you, look at where their “Core” is of homes they have represented in both selling as well as buying. Find someone who is out knocking on doors in the exact neighborhood you want to buy. Consider more than one agent. If the distance between areas you will consider buying a home is considerable, consider having a agent familiar in each area.

Do you need to Sell your Current Home

Many homeowners make the huge mistake of thinking they need the same agent to sell their home that will find them a new home. Unless you are planning to move around the corner, have two different agents, hopefully at different offices. If you need to sell before you buy, you might be able to buy on contingency. Meaning, your purchase goes thru when you sell your current property.

Don’t Let the Real Estate Agent Select Your Lender

Having your Lender associated with the agent you are using to represent the purchase is one of the biggest mistakes we see homeowners make. The agent is good, the Lender is good. But having 2 not associated professionals will get you each person looking out for your best interest. This usually results in quicker closings and lower fees. It’s like having your Doctor tell you where you go to grocery shop. Food and health are associated but it makes good sense to have 2 different connections. Your Doctor for health…your grocer for food choices.

Make a List of What You Want in a New Home

Talk with your family and find out just what your looking for in a New Home. Having an extra bedroom will probably add $10,000 to the price. Having a pool might add $35,000. ect. Determine your budget before you go shopping. Tell your agent your needs and ask for input on prices…again,before you go shopping. Once you are ready to make an offer, ask your agent to find out if the seller will give you some seller concessions. It is common for the seller to contribute up to 3% to your closing cost. If you don’t ask for it, you won’t get it.