TINA M. DIECK
REALTOR®

 

 
 

For Buyers

The purchase of a home is the largest investment most people make in their life. A buyer's agent can assist you in your search for a home and help protect your interests. The services of a Real Estate Agent as a buyer can help negotiate terms of a home purchase, and help the buyer get a better overall deal in their purchase. In addition, a buyer's agent can help direct the buyer to multiple service providers needed for the purchase of a home including Appraisers, Insurance Agents, Mortgage Providers, Title Agents, and other necessary service providers.

Tips For Buyers

1. Use a Buyer's Agent

An experienced agent is beneficial to your home search. A buyer's agent should be actively seeking potential homes, keeping you informed of searches, negotiating on you behalf, and answering questions you may have about purchasing a home. A buyer's agent represents you and has your best interest in mind when negotiating terms, conditions, and prices of your potential home purchase. A buyer's agent will allow you to see more properties from multiple sellers.

 

2. Avoid Major Credit Purchases

Avoid spending sprees using your credit prior to buying a home. Your mortgage pre-approval is subject to a final evaluation of your financial situation. Purchases on credit close to the time you are looking to purchase a home may affect your eligibility to obtain a mortgage. It is estimated that every $100 you pay per month on credit payments could cost you $10,000 in eligibility for a home mortgage. So spend wisely and hold off on large purchases if possible when looking for a new home. 

 

3. Get a Lender and Get Pre-Approved

In today's market buyers should get pre-approved for a mortgage before they begin looking for their dream home. However, there is a difference between pre-approval and pre-qualified. Pre-approval means that you have applied for a mortgage: you have filled out the mortgage application, received your credit report, and verified your employment, assets, etc. When you are pre-approved, you now exactly what the maximum loan amount will be.

A pre-qualified letter merely states what you might be able to get and is a simple process which can be done over the phone based on answering questions. Essentially a pre-qualified letter does not verify your eligibility to obtain a loan.

A pre-approval can also assist you in negotiating for a home when there are competing offers. With a pre-approval a seller knows you can obtain a given mortgage whereas a pre-qualified letter holds little value to a seller.

In addition to getting pre-approved, make sure you use a legitimate lender and one you can trust.

 

4. Find the Right Seller

The best seller is one who is highly motivated, and will more likely sell their home for less than it is worth. As a buyer, you should find out why they are motivate in selling their home as it can help you in negotiating a more favorable price. When given  a chance, a buyer should ask the seller why they are selling. The Reasons could be anything from a new job in a different location, financial problems, or they need a larger home due to children on the way. By understanding why the seller is selling, the buyer can help the seller obtain their goal and get a better deal for themselves.

A buyer should also avoid some sellers who are not motivated. Particularly ones who stall on having inspections, are unable to clear lines against their property, and do not own 100% of the property.

 

5. Make a Plan

Buying a home will probably be one of your biggest personal investments. To help obtain the best deal possible with the least amount of stress you should anticipate the steps required in buying a home, and know what you are looking for.

First, you should determine how much you can afford. If you are not sure how much you can afford, find a lender you can obtain a pre-approval with and begin looking at homes in your price range. A pre-approval helps eliminate stress as you know exactly what you qualify for, what rate you will receive, what your monthly payments will be, and how much you must come up with for a down payment.

Second, you should ask yourself where you want to live and what is the best location for you and your family. You should consider the proximity to your work, school, crime rates, local transportation, and what type of home you would like to live in (i.e., condos, townhomes, new-homes, single family homes, etc.)

 

6. Get an Inspection

As a buyer, you are entitled to know what exactly you are getting and shouldn't take for granted what the seller or listing agent tells you. A professional home inspection is something you must do, whether you are buying an existing home or a new home. An inspection is an opportunity to have an expert look closely at the property you are considering purchasing and getting both an oral and written opinion of its condition as well as potential concerns. The inspection can help provide a broader view of the condition of the home and help in determining your final offer, and may allow you to revoke your offer if the inspection does not meet your satisfaction.

 

Other Buyer Tools

Check out various mortgage rates, terms, and calculators to estimate your monthly payments and what you potentially can afford at: http://www.bankrate.com/mortgage.aspx

 

 

 


State 7 Realty - A Division of State 7 Realty, LLC
8 South Main Street, Mount Airy, MD 21771
Office 301-831-7653 • Fax 301-831-7655 • Cell 443-691-4965
E-Mail: tina@tinadieck.com
Licensed for the entire State of Maryland - Independently Owned and Operated