BUYING TIPS
1. Get Your Finances in
Order. -
Often when people are considering buying a home whether it be a first
time investment or another home, they believe they can just purchase one like
buying a new item for a kitchen. That is not usually the case. Here are some
things you should do before you buy a home.
Check with a lender to see what you qualify for.
You should know facts such as:
Annual Income
Amount of Cash you have for a down payment*
Other Home Loans
Credit Card Balances
Other Loan Balances (Vehicles, etc.)
School Loans
Other factors affecting your income e.g. child support, tax payments,
dividends, etc.
*Note: Some first time home buyer loan programs do not require a down payment.
2. It is generally a good idea to get pre qualified.
Many sellers require a prequalification letter with your offer to
purchase. So you should have that readily available when it comes
time to make an offer. In general it will make your offer look stronger.
3. There is no cost associated with
getting pre qualified.
4. Prequalification is where you have spoken to a
lender about a possible home loan.
This is when you have spoken to a lender, usually over the phone. You
will provide him with the information described above. They in turn will give
you an estimate of what they believe you would qualify for if all the
information you have given them is accurate.
IT DOES NOT MEAN YOU ARE APPROVED!!
People often think because they are pre qualified they can get the loan when
they find the home of their dreams. That is not true. At this point in the
loan process they have not run a credit check, or verified any of the
information you have provided. There may be things on your credit report that
are inaccurate or that you have forgotten about that may inhibit the loan
process, or affect the loan amount.
5.
When we find a home we like how do we buy it?
A:
It is a many step process here is a brief
overview of the process
You will need an earnest money check to
accompany the Offer to Purchase. This may be in the form of a personal check,
or in some cases a certified check. A minimum of 1% of the sales price is
deemed adequate in most cases. When your written Offer to Purchase is
presented to the seller, he has three choices:
1. He can accept your offer
2. He can reject your offer
3. He can make a counteroffer.
Negotiations after the initial written
offer are conducted verbally until an agreement is reached. When the seller
accepts your offer, or you accept his counteroffer in writing, you have a
binding contract for sale on that property. Your earnest money will be
deposited in the listing broker's trust account to be held until closing.
6. Is it best to make a really low offer at
first?
It is important to remember that if you
make a low offer on a home and the offer is rejected or countered, another
prospective buyer may submit an offer that may be accepted by the seller
before you have the opportunity to submit another offer or accept the seller's
counter to your offer. I have even heard of experiences where a buyer made a
low offer to the seller, and the seller was insulted and refused to entertain
any more offers from the client.
7.
Would it be in my best interest to work with several Realtors and not just one?
A: It is in YOUR best interest to work
exclusively with me.
We have access to every home that is in South Jersey Multiple Listing
Service and we'll be paid only when we find the right home for you (Seller
always pays commission).
Your loyalty is appreciated, and in return, you will receive the maximum in
service from me and my team.
All of our time and professional advice, experience, and assistance is FREE
to you!
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