Buying in Today’s Real Estate Market

 In today’s real estate market, with all the recent changes in the Mortgage Industry, prospective buyers should:1. Get prequalified by a Mortgage Brokers or Lender.  If you did this prior to August 2007, you’ll need to get prequalified again.  Take the time to talk to a Mortgage Broker or Lender.  Their specific questions in regard to income, debt, ect. will help you determine the price range you can afford.  It is a very important step on the path to home ownership.2. Have the home your considering purchasing inspected by reputable home inspector.  Qualified home inspectors will detect issues that many buyers can overlook.  There are many different kinds of inspections you will want to consider.  Some of the basic inspections people typically order are: 1.Contractors Inspection 2.Pest Control Inspection 3.Engineer Inspection and 4.Roof Inspection. If possible, attending these inspection can prove to be a very valuable experience.3. Be careful not to limit your search for properties to open houses, ads, or the internet.  Oftentime, homes that you’ll find in a real estate magazine or on the internet (if they are priced properly) have already been sold.  Your best course of action is to contact a reputable realtor that can work in tandem with your parameters for finding a home.  As a Realtor, I have up to date information that isn’t always available to the general public including pocket listings that myself or other associates might have or be aware of.  “Pocket Listings” are homes that are not on the Multiple Listing Service.   Sellers that do not want to formely list their home for sale, but are willing to sell their home, will use this methodology sometimes.4. Choose a Realtor that is commited to forming a strong business relationship with you.  Making a connection with the right Realtor is crucial.  Choose a professional who is dedicated to serving your needs – before, during, and after the sale!5. Buying a home is a process of elimination, not selection.  New properties come on the market every day so be open to all possibilities.  When you think you’ve found the home you want have your Realtor prepare a comparative market analysis for you.  This compares similar homes that have recently sold, or are still for sale.6. Consider your long term needs.  It’s important to think ahead.  Will the home your considering buying fit your needs in 3 to 5 years?7. Purchase adequate Homeowner’s Insurance.  Advice from an insurance agent can provide you with answers to any concerns you may have.8. Purchase a Home Protection Plan.  This is not related to your homeowner’s insurance but is essentially a mini insurance policy that usually last one year from close of escrow.  It usually covers basic repairs you may encounter and can be purchased for a nominal fee.  Talk to your Realtor to help you find the Home Protection Plan you need.9. Know the total costs involved!  Early in the buying process you should talk to your lender (and Title Company officer/representative as soon as you open Escrow)  for an estimate of closing costs.  Title Company and any attorney fees should be considered.  Prepaying through the Escrow process Homeowner’s Association Fees and Home Insurance must be taken into account. Also, remember to examine your closing or settlement statement prior to closing.10. Due Diligence: Buyers should make a list of any concerns they have relating to issues such as crime rates, schools, power lines, neighbors, environmental conditions ect.  Ask the questions before making an offer on a home.  Be diligent, so that you can have confidence in your purchase.