Dara Brusniak - MyDara.com - Your Personal Realtor

The construction process sometimes poses some unique challenges -- because there are so many details to coordinate. As an accredited buyer representative, (ABR), I will respond knowledgeably to your questions and anticipate your concerns with proven solutions. You'll be provided with all of the details you need to make informed decisions.

Use a Buyer's Agent

It's important that you choose an experienced agent who is there for you. Your agent should be actively finding potential homes for you, keeping you informed during the entire process, negotiating furiously on your behalf, and answering all of your questions with competence and speed.

First, find an agent who represents you and not the seller. This is beneficial during the negotiation process. If you are working with a buyer's agent, he or she is bound not to disclose to the seller your priorities. In addition, he or she also focuses on getting you the lowest purchase price.

Also, when you use a buyer's agent, you are shown more properties. Not only are Buyer’s Agents plugged into the Multiple Listing Service (MLS), but they are also actively finding homes that are listed as For Sale By Owner (FSBO), and homes which sellers are thinking about listing for sale.

Why You Should Not Make Any Major Credit Purchases

Don't go on a spending spree using credit if you are thinking about buying a home, or in the process of buying a new home. Your mortgage pre-approval is subject to a final evaluation of your financial situation.

Every $100 you pay per month on a credit payment could cost your about $10,000 in home eligibility. For example, a car payment of $300/month could mean that you qualify for $30,000 less in a mortgage.

Even if you have accumulated enough savings, you should considering not making any large purchases until after closing. The last thing you want is to know that you could have purchase a new home had you curbed the urge to spend.

Be Wary Of the Listing Agent(s)

Traditionally, buyers stopped at open houses and were shown the property by an agent at the house. That agent is typically the listing agent. And in most cases, he or she represents the seller.

Be careful of what you say to a listing agent. A listing agent's role is to find a buyer, and to get as high a price and as good terms as possible for the seller. He or she is required to inform the seller of any facts that may influence the seller's decision about whether to accept an offer or not.

For example, if you mention to the listing agent the amount of a mortgage for which you are qualified, don't be surprised if the seller knows, too.

Always keep in mind that you want the lowest price and the best terms. If an agent is not directly working for you, they could very well be working against you.

Getting a Legitimate Lender and Getting Pre-Approved

In the Past, buyers could go house shopping and often when they found their dream home, they would go to get approved for a mortgage. Today, this is one of the least effective methods in landing a dream home.

Most lenders will pre-qualify you for a mortgage over the phone. Based on general questions about your income, debt, assets, and credit history, lenders can estimate the mortgage for which you qualify. However, being pre-qualified and pre-approved are different things. 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 know the maximum loan for which you qualify.

A “pre-qualification” letter has not verified and in essence, is not persuasive if you are competing with other buyers who are “pre-approved”. When you are “pre-approved”, you and the seller know exactly how much house you can afford. It gives you credibility as an interested buyer and lets the seller know immediately that you will qualify for a loan to buy their property.

In addition to being “pre-approved”, it's important to be pre-approved with a legitimate lender. Legitimate lenders include: banks, mortgage bankers, credit unions, savings and loan associations, mortgage brokers, and online lenders.

Some lenders to avoid: those who lose a form or misplace a file, those who gather information from you in a disorganized manner, those who are not informed about interest rates, points or costs, and those who cannot provide you with the information you need.

Finding the Right Seller

The best seller is one who is highly motivated. A highly motivated seller is more likely to sell for less than his or her house is worth. And it matters that you find out why. Learning the reason why a Seller needs to sell can help you get the price you want and help the seller get what he or she wants: a timely sale.

When given the opportunity to meet with sellers, ask them why they are selling. The reasons could be anything from a job change to a new location to financial problems. If you can solve their problem, whether it is cash related or time related, do so. For example, if the sellers are highly motivated because they need to move quickly, give them a fast sale - and a lower price. If you can make an offer, even a low one, that gives them cash in a short time, they are more likely to accept.

There are also some sellers who you should avoid. Not every seller is as genuinely motivated as they make themselves appear to be. Some possible hints:

It is impossible to find the perfect seller. But it is possible to find out which sellers are legitimate, and which ones aren't.

Build a Plan of Action and Get Ready

Buying a home will probably rank as one of the biggest personal investments you can make. Being organized and in control will contribute significantly to getting the best home deal possible with the least amount of stress. It is important to anticipate the steps required to successfully achieve your housing goal and to build a plan of action that gets you there.

Before you can build a plan of action, take the time to lay the groundwork for your decision-making process.

First, ask yourself how much can you afford to pay for a home. If you're not sure of the price range, find a lender and get preapproved. Preapproval will let you know how much you can afford so that you can look for homes in your price range. Getting pre-approved helps you to alleviate some of the anxieties that come with home buying. You know exactly what you qualify for and at what rate, you know how large your monthly mortgage payments will be, and you know how much you will have for a down payment. Once you are pre-approved, you avoid the frustration of finding homes that you think are perfect, but are not in your price range.

Second, ask yourself where you want to live and what is the best location for you and your family. Things to consider:

Hot, Normal, and Cold Markets

This is an extremely competitive market, one that is advantageous to the seller. Sometimes, homes will sell as soon as they are listed or even before homes are listed. Typically, during a hot market, multiple offers will be made on each home and more often than not, homes will sell for more than their asking price. It is even more crucial to be prepared and to be ready as a buyer when the market is hot. It can be easy to get caught up in the bid for a home, but if you are prepared (pre-approved, solid in price range, realistic about your needs), it is easier to remain focused on your housing needs and price range.

In a normal market, there is a large number of homes available and an average number of buyers. This market does not necessarily favor the buyer or the seller. A seller may not have as many offers on the home, but he or she may not be desperate to sell either. Again, it is the buyer's responsibility to be prepared. During a normal market, the chances to negotiate are higher than in a hot market. As a buyer, you can expect to make offers at lower than the asking price and negotiate a price at least somewhat less than what the sellers are asking.

In a cold market, houses may be listed for more than a year and the prices of houses listed may drop considerably. This market is advantageous to the buyer. As a buyer, you have the time to make an offer that works to your best interest. It is not uncommon to “low-ball” and to find that sellers are accommodating to meet your needs. Keep in mind that even though this market is a great time for buyers, you do not want to lose your dream home by being unrealistic. Your goal is to get the your dream home at the best possible price.

Importance of Inspection

As a buyer, you are entitled to know exactly what you are buying. Don't take for granted what you see and what the seller or the listing agent tells you. A professional home inspection is something you MUST do, whether you are buying an existing home or a new one. 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 as to its condition.

Beforehand, make sure the report will be done by a member of a professional organization, such as a local trade organization or a national trade organization such as ASHI (American Society of Home Inspection). Not only should you never skip an inspection, but also you should go along with the inspector during inspection. This gives you a chance to ask questions about the property and get answers which are not biased. In addition, oral comments are typically more revealing and detailed than what you will find in a written report. Once the inspection is complete, review the inspection report carefully.

You have to demand an inspection when you present your offer. It must be written in as a contingency; if you do not approve the inspection report, then you don't buy. Most real estate contracts automatically provide an inspection contingency.

Avoiding Financial Stress

By asking the right questions, and knowing exactly what your needs are, you can find the right loan for you. There are certain approaches that you can take while mortgage shopping that can cost or save you money.

It is still true that the better you are financially qualified, the lower your interest rate will be. However, mortgages are available for almost everyone; the interest rates will vary.

Before speaking with a lender, know the monthly payment amount with which you feel comfortable. Then when you discuss mortgage pre-approval with your lender, it is easier for you to determine the value of home your monthly amount translates into. Do not put yourself in the position where you will be paying more each month than you intended simply because the "dream" house requires it.

Do your research on the types of mortgages available to you and find the one that best suits your needs. There are a number of considerations to be made in terms of finding the best mortgage for you: