Tips for the First Time Buyer

Now is the time to buy. Many first time buyers may be apprehensive in our current market, however, if you follow the tips below, you have no need to fear. With the new loans and low interests rates, and many homes to chose from, now is the time to find the home of your dreams!

What is the difference between an agent and a realtor?

The word "agent" is a general term meaning any person that represents another in a transaction or business. This term can be used broadly for your real estate agent or realtor, but an agent with the title of realtor, a registered trademark, identifies a professional in real estate who subscribes to a strict Code of Ethics and is a member of the National Association of Realtors.

Why should I have a Realtor?

Every real estate buyer should have their own buyer's agent, otherwise the seller's agent will represent you. The seller's agent is working in the seller's best interest, not yours. Engaging in a transaction without your own agent is like going to court and using your opponent's attorney! Why would anyone want to do that? Your agent will represent you with your best interest in mind, making sure that you get a fair price and any discounts. Besides that, it's free!What will it cost me?It does not cost a buyer anything to have a real estate agent. The seller gives a commission to any real estate agent that brings in a buyer. If you buy without your own agent, that same commission will go to the seller's agent instead, on top of their seller's commission.

Why should I sign an exclusive contract with my realtor?

A realtor invests their own time and money, at their own personal expense, to find you a home. This includes all overhead costs which keep them in business (subscriptions to top real estate databases, websites, advertising, signage, open houses, property scouting, gas, etc.). If you have several realtors scouting property for you (i.e. no exclusive contract), they can not be certain that you will use them as your representative when they finally decide to buy - which means, they will have been working for free! If you are one of these clients, you will be on the bottom of the priority list, while other contracted buyers will get the utmost service and time from their brokers.

What will my realtor do for me?

Your realtor will endlessly search for property that fits your needs. They will do so by scouring the multiple listing services, driving and visiting Open Houses in your area(s) of interest, keeping up on top of new listings that come out weekly in Caravan Express, the real estate agents publication, and using their interoffice networks and associates for new property profiles even before they are listed!

Your realtor will do a complete market analysis of your area of interest to make sure that the properties you are considering are within market value and not overpriced. She will also negotiate on your behalf to get a fair market price and/ or added value.If you are uncertain what you are looking for, your real estate agent will guide you - directing you to areas that are appealing and which you can afford! She will give you demographics, school information, crime rates, local attractions, businesses and any other information you need to know.

Your broker will also scout Open Houses that you do not have time to attend. She will let you know her thoughts and will also take digital photos at your request.Why should I get preapproved for a loan?A preapproved loan lets you know what you can afford before you start searching. This saves both you and your broker time looking in price ranges above or below what you can afford. It also saves you the heartache of finding a home that you love but can not afford. When you come with your preapproval letter, you can look at Open Houses in your price range, so that when you do find the home you want, you are comfortable and can afford your purchase. Seller's are also looking for preapproved buyers. They will not even look at offers from buyers without preapprovals, as they are not ready to go. In a seller's world, it is about selling fast!

Where can I get a valid preapproval letter?

30% to 40% of preapprovals issued are faulty or invalid. Internet based lenders and mortgage brokers contribute largely to these numbers. A faulty pre-approval letter is a key cause in breakdowns of transactions and make a buyer highly vulnerable to costly postponement or a blow-up on a deal. A faulty preapproval letter will provide mortgage terms, rates, and amounts without a lender having ever seen any documentation. No preapproval letter is worth it's weight if the lending institution has not thoroughly checked credit files, income and cash on hand. Basic standards deem that the preapproval letter should disclose, for example, that the loan amount offered is subject to full appraisal, formal underwriting and receipt of an acceptable contract. It should state that the interest rate quoted is not locked and could change.Your realtor can also put you in touch with several reputable lenders for you to evaluate.

What should I do once I have my preapproval letter?

Once you get your preapproval letter, put your life on hold. Don't change jobs, don't buy a car, don't apply for a credit card, don't do anything that could affect your credit! Otherwise, your financial profile and credit score could change enough to render your once valid preapproval letter useless!

With your preapproval letter in hand, contact your realtor of choice, Adele Langdon, and let her take you home!