6 People you need to buy a home

Dated: 03/08/2019

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Make the home process a little easier by understanding  how each of these people can help.

  1. Loan officer 

    1. Talk to both a mortgage loan officer and an loan officer at a bank or credit Union 

    2. Get pre-approved - Keep in mind that the pre-approval at most, should be a ceiling.  Just because you are approved for $300,000 doesn’t mean you need to spend that much.  Make sure this is in line with the rest of your financial goals 

    3. Explore the different types of financing.  Conventional, FHA, USDA, and VA are the most common.   

    4. If you think you're going to pull the trigger on a home soon, lock an interest rate. 


  2. Realtor 

    1. An agent can guide you through the process and be an advocate along the way. 

    2. Interview a few agents before deciding on one.  Find out how many transactions they've had in the past year.  Find out what their sale to list price ratios are.  That’s the percentage of the price that was paid compared to what it was listed for.  It's really a measurement of negotiations.  If the house was listed at 100K and you get it for 98K, that’s a 98% sale to list price ratio.  This is an area where I like to brag a little.  I'm pretty competitive, so when I see that the average ratio is 98%, I'm fighting for 97% or lower for my buyers.   

    3. Don't use a family member or a friend, unless they are good.  A bad agent / negotiator can cost you thousands in the long run. 

    4. Here is the best part - its FREE!!  The seller pays the commission to the agent, not you, the buyer.  


  3. Home Inspector 

    1. Once you find a home and go into contract, you'll want a home inspection 

    2. A good agent should refer you to 3 home inspectors, but its ultimately your decision who to use 

    3. Meet the home inspector at the home so he/she can go over any defects found on the house 

    4. Go over any repairs with your agent and decide if you want to move forward with buying the house or having the sellers make repairs.   


  4. Appraiser  

    1. Generally speaking, the lender hires the appraiser as a way to protect the investment they are about to loan money on.   

    2. The appraiser does not work for you, even though you may be paying them. 

    3. If the appraiser comes back with a lower value than what you agreed to buy it for then you have the option to walk away from the deal or negotiate a lower price.   


  5. Insurance Agent 

    1. It's a good idea to start this process early on by getting quotes, but you won't need it until you are actually ready to close on the house 

    2. Prices will vary depending on the level of coverage 

    3. Insurance is somewhat of a commodity, but I would recommend meeting face to face with an agent so you have a personal relationship with them.  If an issue ever comes up, that might help you in the process. 

    4. If you forgot to get a policy and tomorrow is closing day,  most agents and loan officers have an insurance agent that can put together a policy in a day or less, if needed.   


  6. Title Company 

    1. Most buyers do not know this, but you can pick the title company.  Obviously, most buyers don't know a good title company from a bad one, so again, a good agent will refer a few title companies they have worked with in the past and had good service.  Additionally, most real estate brokerages have affiliated business agreements with title companies and/or in house title companies  

    2. They perform a title search for a mortgage, liens, etc. 

    3. They offer title insurance 

    4. They coordinate the closing and handle all the transferring of money in the transaction.   

You can listen to the this Podcast on the Price to Sell Podcast here 


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