Get a loan pre-approval before shopping for a home. Buyer's agents help make the whole process go smoothly for you.

Tips include mortgage loan pre-approval and buyer's agents

If you're buying your first home, or moving up to a better one, now is the time to plan for your new home purchase.

Home interest rates are still very close to their record lows. During the slow time of the year, any house or condo seller who has a home listed for sale is usually highly motivated to sell.

Your purchase price could be much lower than the home will command in the peak annual spring home-buying season. If you want to buy a house or condo, here are five tips to make your home purchase easier so you don't overpay:

1. Get a mortgage home loan pre-approval. Most experienced real estate agents refuse to work with prospective home buyers who do not already have a loan pre-approval for a mortgage in writing.

The reason is that real estate agents understand a buyer pre-approved for a mortgage loan is serious. They know their maximum mortgage amount and home shopping price range. Mortgage pre-approval for loan (not just pre-qualification) shows home sellers they are dealing with a qualified prospect .

2. Don't be in a hurry to buy a home. Buying a residence is a major decision that should not be entered quickly. Internet sites are great places to begin the home purchase search. More than 60 percent of home buyers use the Internet to learn about available listings and contact real estate agents.

Careful home purchase research will reveal potential problems. However, when you finally spot the right home to buy, make your purchase offer. Don't lose your dream home to another buyer's offer while you over analyze.

3. Work with the area's best buyer's agent. Many real estate agents work almost exclusively with property sellers. Ask your friends and business associates whom they used as their home buyer's agent. You will soon have a list of buyer's agents to interview.

Some buyer's agents ask their prospects to sign exclusive buyer's agency agreements ranging from 60 days to six months. Ask for only a 30-day buyer's agent listing, with the understanding you will renew if the buyer's agent is doing a good job. Your goal is to avoid being "tied up" for a long time with an unproductive agent.

4. Ask why the seller is selling. A key question to ask the seller is "Why are you selling this lovely home?" A truthful answer can help a buyer decide if this is the right house or condo for purchase.

For example, if the house is in foreclosure and the foreclosure sale will occur in three weeks, you might not be able to close that fast. However, if you can close quickly, you could buy the home at a bargain and the seller will walk away with some cash instead of losing it all by foreclosure. This is another time where a loan mortgage pre-approval is helpful.

5. Before making a purchase offer, insist your buyer's agent prepare a Comparative Market Analysis. The CMA shows recent sales prices of nearby homes, asking prices of homes now for sale, and asking prices of recently expired listings that didn't sell.

Armed with a fresh CMA prepared by your buyer's agent, you can determine if the seller's asking price is reasonable. If not, don't hesitate to make a purchase offer at a lower price you think is reasonable. You mortgage loan pre-approval will add punch to your offer.

Back to Articles Menu

Florida | California | Colorado Real Estate in Summit County | Commercial Lenders