Tools for Buyers

What is involved in buying Property As a potential buyer of real estate, you will naturally come into contact with the marketing efforts of the seller's agents. They will provide you with information about the kind of property you are interested in and obtain information from you about your needs for housing. They have information about specific properties which are available on the market and how the available property might fit into your financial situation. This process is sometimes referred to as qualifying a buyer. The BROKER requests this information in order to show you only those properties which meet your needs and are in your price range. these agents are in the employ of the seller or seller's broker unless you, the buyer, make different arrangements by means of a written, signed contract with a BROKER designating that BROKER as your agent. If you enter into such an agreement, the BROKER you select will be in your employ and will be compensated by you. Without such an agreement, the BROKERS with whom you have dealings are compensated by the seller and are representing the seller or the seller's broker. Buyers and sellers are encouraged to discuss and explore the challenging process of selling and buying real estate with any BROKER. these professionals are able to provide you with additional information or answers to any questions you might have. Your Attorney's Role in Real Estate Transactions Buying a home can be one of life's most exciting experiences - and one of the most challenging. The more prepared you are at the outset, the less overwhelming and chaotic the buying process will be. Arm yourself with detailed information, practical tips, calculators, worksheets, and resources. Make a Plan Buying a home is a very important decision. Doing some preliminary planning before you begin your home search will make the entire process more manageable and less overwhelming. As part of your initial plan, you should: Check your credit rating Explore mortgage pre-qualification and pre-approval Become an educated buyer Make a wish list to learn what you need, want and don't want in a new home

1. Check Your Credit Rating Double-check your credit rating at the outset. Straighten out any errors or disputed items - it will prevent trouble in the future when applying for a mortgage. You may see disputed items, in addition to errors caused by a faulty social security number, a name similar to yours, or a court ordered judgment you paid off that hasn't been cleared from the public records. If such items appear, write a letter to the appropriate credit bureau. Credit bureaus are required to help you straighten things out in a reasonable time (usually 30 days). TIP: Make sure that any outdated derogatory entries are deleted from your credit file. Adverse credit information is not supposed to be reported or included on your credit report after seven years (except bankruptcy information, which can be reported up to ten years). TIP: Officially cancel inactive credit cards. Too many inactive credit cards with significant credit limits could keep you from obtaining a mortgage loan. TIP: Hold off on making any major credit card or car purchases while you're waiting to apply for a mortgage. Monthly payments you're obligated to pay will be counted against you, and reduce the amount of the mortgage loan you'll be offered. Even if you've been pre-approved for a mortgage, that approval is subject to last-minute evaluation of your financial situation, and a spending spree for appliances, furniture and other goodies intended for your new home may wreck your chances for buying it.

2. Pre-qualification and Pre-approval on a Mortgage Any reputable real estate broker will "pre-qualify" you for a mortgage before you start house-hunting. This process includes analyzing your income, assets and present debt to estimate what you may be able to afford on a house purchase. Obtaining mortgage "pre-approval" means that you have in hand a lender's written commitment to put together a loan for you (subject only to the particular house you want to buy passing the lender's appraisal). Pre-approval makes you a strong buyer, welcomed by sellers. Down side: You must pay application fees to cover the lender's paperwork in verifying your employment, income, assets, debts and credit rating. If you later decide not to use that particular lender, you'd have to start all over again elsewhere - with no rebate.

3. Become an Educated Buyer: Research Neighborhoods, Read Ads and Visit Open Houses If you move into a new city, consider subscribing to the local newspaper in the new town and start reading local news and classified ads to get a feeling for different neighborhoods. If you see an "Open House" posting, don't hesitate to walk in, even if you're not ready to buy yet. Visiting open houses is an excellent way to familiarize yourself with the market and judge various real estate agents you may meet along the way, and it won't put you under obligation to anyone.

4. Your Wish List Before starting your search, you should make a "wish list" to decide which features are absolutely essential, which are nice "extras" if you happen to find them, and which are completely undesirable. Be specific !