Tips for Buying Your Home

BUYING TIPS


	Hire THE BOWEN TEAM to Represent You When Buying a Home in the White Mountains
	It is important to note that when we represent you as a buyer, you do not pay my commission. Our commission is paid by the seller or his or her broker for bringing you in as the buyer. We are experienced executives that will actively find you potential homes, keep you informed of the entire process, negotiate furiously on your behalf, and answer all of your questions with competence and speed. As a buyer’s agent we not required to tell the seller of your top choice and are focused on getting you the lowest price. Also, when you use us as your buyer's agent, you will see more properties as we have access to the White Mountains Multiple Listing Service (MLS).
	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 are 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 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.
	Be Wary About the Listing Agent
	Traditionally, buyers would stop at a house for sale and be shown the property by an agent sitting there. But the problem with that method is that the agent sitting there is usually the listing agent. And in most cases, he or she represents the seller. Be careful about what you say to a listing agent. A listing agent's role is to find a buyer, and to get as high a price and as good terms as possible for the seller. He or she is required to inform the seller of any facts that may influence the seller's decision about whether to accept an offer or not. For example, if you mention to the listing agent how much mortgage you are qualified for, don't be surprised if the seller knows too. Always keep in mind that you want the lowest price and the best terms. If an agent is not directly working for you, they could very well be working against you.
	Be Careful of the "Dual" Agent
	Some agents will represent both buyers and sellers; they are called "Dual" agents. In many cases, the same agent will list the property and submit your offer. In fact, they are required by law to keep information confidential with both clients. There is nothing legally or ethically wrong here, however, it is hard to understand how the agent can negotiate to the best of his or her ability on your behalf. Instead of becoming a negotiator, they often play the role of mediator. It is easy to assume that no agent can represent both the buyer and seller as well as an agent who declares for just one party or the other.
	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 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. A pre-qualified letter is not verified and in essence, does not count for much if you are competing with other buyers who are pre-approved. When you are pre-approved, you and the seller know exactly how much house you can afford. It gives you credibility as an interested buyer and lets the seller know immediately that you will qualify for a loan to buy their property. In addition to being pre-approved, it's important to be pre-approved with a legitimate lender. Legitimate lenders include: banks, mortgage bankers, credit unions, savings and loan associations, mortgage brokers, and online lenders. Some lenders to avoid: those who lose a form or misplace a file, those who gather information from you in an unorganized manner, those who are not informed about interest rates, points or costs, and those who cannot provide you with the right information.
	Build a Plan of Action and Get Ready
	Buying a home will probably rank as one of the biggest personal investments one can make. Being organized and in control will contribute significantly to getting the best home deal possible with the least amount of stress. It is important to anticipate the steps required to successfully achieve your housing goal and to build a plan of action that gets you there. Before you can build a plan of action, take the time to lay the groundwork for your decision-making process. First, ask yourself how much you can afford to pay for a home. If you're not sure on the price range, find a lender and get pre-approved. This will allow you to know how much you can afford so you can look for homes in your price range. Getting pre-approved helps you to alleviate some of the anxieties that come with home buying. You know exactly what you qualify for and at what rate, you know how large your monthly mortgage payments will be, and you know how much you will have for a down payment. Once you are pre-approved, you avoid the frustration of finding homes that you think are perfect, but are not in your price range. Second, ask yourself where you want to live and what is the best location for you and/or your family. Things to consider: convenience for all family members proximity to work, school crime rate of the neighborhood local transportation types of homes in neighborhood, for example condos, town homes, co-ops, newly constructed homes etc.
	Importance of Inspection
	As a buyer, you are entitled to know exactly what you are getting. Don't take for granted what you see and what the seller or the listing agent tells you. A professional home inspection is something you MUST do, whether you are buying an existing home or a new one. An inspection is an opportunity to have an expert look closely at the property you are considering purchasing and getting both an oral and written opinion as to its condition. Beforehand, make sure the report will be done by a professional organization, such as a local trade organization or a national trade organization such as ASHI (American Society of Home Inspection). Not only should you never skip an inspection, but also you should go along with the inspector during inspection. This gives you a chance to ask questions about the property and get answers that are not biased. In addition, the oral comments are typically more revealing and detailed than what you will find on the written report. Once the inspection is complete make sure to review the inspection report carefully. You have to demand an inspection when you present your offer. It must be written in as a contingency; if you do not approve the inspection report, then you don't buy.
	Avoiding Financial Stress
	By asking the right questions, and knowing exactly what your needs are, you can find the right loan for you. There are certain approaches that you can take while mortgage shopping that can cost or save you money. It is still true that the better qualifications you have, the lower your interest rate will be. However, there are mortgages available for almost everyone; it's the interest rates or the down payments that vary. Before speaking with a lender, know what monthly dollar amount you feel comfortable committing to. Then when you discuss mortgage pre-approval with your lender, it is easier for you to determine the monthly amount and what value of home the monthly amount translates into. Do not put yourself in the position where you will be paying more each month than you intended simply because the "dream" house requires it. Do your research on the types of mortgages available to you and find the one that best suits your needs. There are a number of considerations to be made in terms of finding the best mortgage for each individual: What type of market are you in? Are the interest rates falling or rising? Do you want a fixed mortgage rate, where you will always know what your payment is going to be? What are your long-term goals? Do you intend to resell the property? Do you only need the mortgage for a short time?
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