| Congratulations on your decision to become a | | | | nothing! When the buyer secures buyer |
| homeowner. Buying a home for most people is | | | | representation, the listing agent typically offers |
| the most important investment decision they will | | | | half of the negotiated commission, per listing |
| ever make. Having a little knowledge of how the | | | | agreement, to buyer's agent. A buyer's agent can |
| real estate buying process works can give you | | | | offer many services to their "buyer clients" that a |
| the confidence you need to make good real | | | | listing agent will not offer including: |
| estate decisions for you and your family. This | | | | - Unbiased opinion on market value of property. |
| short article is intended to give you a brief | | | | Most seller's agent will cherry pick the recent |
| overview of how to best work with real estate | | | | comparable sales in order to make the property |
| agents and mortgage brokers so you get the | | | | look much more attractive. |
| best deal possible on your home purchase. | | | | - Historic information about the property including |
| Over 80% of home buyers begin their home | | | | "true" days on market, price changes, etc. |
| search online. The Internet will provide you with | | | | - Advice and opinions about the list price, property |
| just about every home for sale in your area | | | | condition, and market conditions. A seller's agent |
| including... | | | | can only offer you facts and must disclose any |
| - Homes listed in the local MLS along with multiple | | | | known material defects. They can not offer you |
| property photos and virtual tours | | | | opinions or advice! |
| - For Sale By Owners (FSBO's) websites contains | | | | Real estate finance can be very confusing. With |
| homes for sale not listed with a real estate | | | | no strict government regulations, the mortgage |
| broker | | | | industry has thousands of lenders quoting |
| - New home builders in your area with floor plans | | | | prospective borrowers a wide range of interest |
| and models for you to look over | | | | rates. Two words that you MUST remember |
| Get online and start searching for homes in your | | | | when selecting a home loan is: SHOP AROUND!!! |
| area that match your criteria. Get a solid idea of | | | | You may have heard that pulling your credit |
| the market values in the neighborhoods and | | | | report numerous times will hurt your credit |
| subdivisions you wish to live. The more familiar | | | | scores. While this is true, an exception to the rule |
| you are about market values in your town, the | | | | is pulling multiple reports while applying for a |
| better idea you will have regarding areas you can | | | | mortgage loan within a 2 week period will be |
| reasonably afford. | | | | treated as one inquiry. Talk to a few mortgage |
| The next step after you get a grip on market | | | | brokers, and your bank or credit union. Your goal |
| values is to locate a Realtor in the local area. Not | | | | is to find a mortgage with the best interest rate |
| all Realtors are made equally! Find an agent who | | | | and best loan terms. Look for low mortgage fees |
| seems most qualified and knowledgable about the | | | | or no mortgage fees. The fees your broker is |
| area of town you plan on buying. Make sure the | | | | charging you will show on the Truth-in-Lending |
| Realtor you choose is a people person. If you do | | | | disclosures the lender provides, as required by |
| not get along with your Realtor, most likely no | | | | federal law. Fees such as processing fee, |
| one else in the transaction will either and it could | | | | underwriting fee, and warehousing fee are also |
| cost you. | | | | called "junk fees" and are negotiable. Most brokers |
| Some people are scared to death when it comes | | | | also charge a 1-2% loan origination fee (also |
| to dealing with salespeople. They would rather just | | | | negotiable). Shop around and secure the best |
| talk directly to the seller's Realtor than finding a | | | | financing currently available. Your lender will |
| Realtor to work for them as a buyer's agent.. | | | | provide you and your Realtor a pre-approval |
| This is probably one of the most common | | | | letter. |
| mistakes home buyers make. When you purchase | | | | *Just because you get a pre-approval letter does |
| a home through a listing agent, that agent | | | | not tie you to that lender or broker. You are still |
| represents the seller and owes all loyalty to the | | | | free to shop around during the home buying |
| seller. They can merely work "with" you, not "for" | | | | process until you sign your loan papers at closing. |
| you. The commission paid to the listing agent has | | | | Now you have free buyer's representation, a |
| already been negotiated by the seller and listing | | | | pre-approval offer on a fantastic loan and are |
| agent. You will not get a discount! Most likely you | | | | knowledgeable about market values in the area |
| will end up paying the price the listing agent tells | | | | you plan to buy. With all your preparation you are |
| you to pay! | | | | now ready to view homes and make an offer on |
| Having a buyer's agent, commonly referred to as | | | | any great deals you see out there in your |
| buyer representation, costs the home buyer | | | | marketplace! |