|
|
Real Esate
What's the difference between Pre-Qualification and Pre-Approval?
Pre-Qualification is a "guesstimate" of what you might qualify for prior to actually submitting your mortgage
application. Based on the unverified financial information you provide, the lender uses a quick calculation to
arrive at a loan amount. Pre-Approval means that the lender has verified your financial information and has
actually committed money in your name for a specific loan type and amount. With today's technology, you can
receive loan pre-approval in minutes.
Searching for Homes
Before you get started, you need to determine if you want to hire a RealtorŪ to help you or go it alone.
Using an agent to buy a home can be very advantageous. Generally, having someone who knows the market negotiating for you is a plus. They know the area and can tell you the pros and cons of any particular community. They have access to most of the homes on the market through the Multiple Listing Service (MLS). They can handle the negotiating, contract and closing for you. And the seller typically pays the buyer agent commission.
If you decide to use an agent, you can expect them to do the following for you:
Help you get pre-approved for a loan
Recommend a specific price range
Suggest different communities that fit your needs.
Screen homes for you
Show you properties
Negotiate the offer and contract
Set up inspections and help to clear contract contingencies
Oversee the closing, escrow and settlement
Provide you information on securing a home warranty
If you choose not to use an agent and buy directly from a "For Sale By Owner", the seller may reduce the price by the 2-3% they would have paid a buyer's agent. If you don't plan to use a real estate agent, it's a good idea to protect yourself with a real estate attorney. Choose your attorney before you start shopping, because it's too late for legal advice after you've already signed a contract.
Beginning your home search
Become familiar with the city you're considering to see if it meets your needs (e.g. near a park, shopping, public transportation, etc.) Drive around. Attend open houses. Talk to friends and colleagues. You may want to select two or three neighborhoods to broaden your options. 
It may also be helpful to take photos of the homes you're interested in. Make personal notes on the back. This will help you stay organized and remember what you've seen.
You may also want to create a profile of the home you're looking for in your next home.
Goals - why are you buying a home?
Features - what do you need vs. what do you want?
Location - is it close to work, in a particular school district, near shopping, etc.?
Style - what type of home fits your needs, lifestyle and taste?
Lot - what is the size? What does it feature (wooded, fenced in, etc.)?
General condition - is it in good shape?
Neighbors - try to get an idea of what kind of neighbors you will have.
Taxes - verify taxes and any current assessments on the home you're considering buying.
|
|
