Back with the Agent: the Sit-Down Meeting

If all went well at the first casual meeting, the agent has arranged a sit-down substantive meeting where both of you will get to know much more detailed information about each other. At this meeting the agent will outline the steps in buying a house and explain some of the forms and procedures you’ll encounter on the path to home ownership: inspection reports, the Seller’s Disclosure, handling of earnest money and more. The agent will want to learn as much as possible about your desired neighborhood(s), what type/size of house you want, and how much you are able to spend to get it. By now you should be pre-qualified by a loan officer so you know what you can afford, and the agent should be able to tell you if your wallet matches your wishes.

First Look at Financing

Before seriously looking at homes you need to find out just what you can afford, and how much it’s going to cost you. As Realtors we want to be looking at homes just as much as you do—but first let’s take a quick look at the pre-approval process.

Pre-Qualifying: Conditional Loan Approval
At this stage your contact with a loan officer is likely to be just a couple of phone conversations, where you’ll give information about your income and debt (including all obligations), and you may be asked for permission to run a credit report. Based on this information the loan officer can issue a letter that specifies a certain mortgage amount for which you are conditionally pre-approved. When you find a home you will need this letter in order to make an offer.

Buyer’s Closing Costs
You don’t know the exact amount you’ll need for a mortgage yet, so the amount stated in the pre-approval letter is hypothetical, though within your qualifying limits. At this time you may ask the loan officer for a more detailed look at the costs of your hypothetical mortgage, and receive an estimate of closing costs. The estimate shows your down payment and monthly payment as well as the various charges that make up the buyer’s closing costs, including lender fees, title company fees, and state mortgage registration tax. Several months of pre-paid property taxes and property insurance (and the initial lump sum for FHA insurance) are also considered buyer’s closing costs, as they are put into your mortgage escrow at closing. We won’t take the time to further detail the buyer’s closing costs, but be aware that they can vary greatly from lender to lender, ranging from 2% to as much as 4% of a $200,000 loan. Some of this difference depends on the type of loan and the interest rate, but lender fees can vary greatly as well.

Financing Quick Points
We say again: when looking for a lender, it’s best to start with recommendations from real estate professionals who work with lenders every day. Your agent will know several trustworthy loan officers—and with all the complexity of mortgage banking you will need a loan officer you can trust.

Important caution: if you’re shopping around for a mortgage lender, be sure that you don’t allow every lender to check your credit. It actually will lower your credit score to have it checked too often. This isn’t a problem, however, if you check your credit yourself. Just be sure to use a service that will give you a FICO report (the type mortgage lenders use). Most lenders will accept your information to issue a conditional pre-approval, since it needs to be verified later for full loan approval anyway.
New lending regulations require that lenders re-check your credit a second time within 10 days of closing, so don’t plan on charging the furniture for your new castle (or the boat for the moat!) until after closing.

What Questions Do You Need To Ask In Order To Find The Right Realtor

Take some time to learn about the agent and determine that he/she is competent, able to communicate directly and honestly with you, and can answer your questions openly. So what questions should you be asking, and when do you start? We say fire away as soon as you can, on the phone or in person or on the web, whenever you’re first making contact. Here are a few essential questions:
Do you work full-time at real estate?
Can you help us find the right loan officer and loan program?
Do you have enough time available to meet our needs?
Are you familiar with the areas we are interested in?
And the agent will likely have some questions for you, such as:
Have you already been pre-qualified by a loan officer?
Have you already been working with a Realtor?
What areas and type of home are you looking for?
If the answer to the agent’s question #1 is no, then the agent should suggest several loan officers who will be able to pre-qualify you right over the phone, so when you meet again you will know just how much you can spend on a home.

Selecting an Agent

Most buyers begin the home-buying process by looking at open houses. Some don’t even know they’re interested in home ownership until they see a house that’s exciting to them.
And for some buyers, the important task of selecting an agent ends right there. Although few realize that the open house experience can be as much about finding an agent as it is about finding a house, that’s the way it works. If you click with the Realtor who greets you at the door you’ve accomplished a lot—since to find and buy the house you really want you’ll have to spend lots of time with this person. Others consciously choose an agent or company because they have seen multiple signs in a neighborhood they desire. We receive many emails from people who, after seeing our signs, checked us out online. And, of course, buyers are often referred to an agent from friends, family, or co-workers.

August Real Estate Statistics

Buying a Home Getting Started - Start w/ the Real Estate Agent

Buying a Home - Getting Started - Start with the Real Estate Agent

Of course you knew we would say the agent comes first—and we do, because a full-service real estate agent will be the pivotal person who helps coordinate the efforts of all the hard-working people you need to get into your new home. The agent can direct you to a good lender and loan officer, reputable home inspectors, title company, even movers and repair contractors. At Re/Max Advantage Realty we’re not obligated to recommend an in-house lender, nor are we compensated in any way—we use certain professionals simply because they perform the best. Starting with an agent you trust can save you lots of time, money and frustration, as many who have come to us can attest. For example, some buyers use the DIY approach of finding and committing to a lender online before working with an agent; yet in nearly all cases, local lenders that we actually work with can get you the loan faster, with better rates and more sensible underwriting. OK, you say, but how to find that all-important agent?

How to choose a real estate agent

If you're buying or selling a home, a top-notch real estate agent canbe your biggest asset. Choose the wrong one, and you could wind up regretting it big down the road.

"Real estate has always been a mark of independence and freedom in this country," says Donald R. Brenner, professor emeritus at American University. "Owning property is very important, and when you deal with someone who is going to help you buy or sell a piece of property, you'd better find someone that knows what they're doing."

Don't embark on your buying or selling journey without an expert on your side. Our basic tips will get you on the road to finding the right agent for your needs:

1. Find an agent before you begin looking at homes. People rarely buy the first house they look at, but are often stuck working with that first agent even after walking away from the deal. If you select your agent before you start looking, on the other hand, you'll know he or she understands your needs and wants and can meet your expectations.
   
2. Ask friends and coworkers for referrals. People you know can provide a good starting point, by recommending agents who've already proved themselves. Don't make your decision based only on a recommendation, but use them to gather names.
   
3. Choose the agency first. Choose the firm based on their local reputation (not a national reputation, as with a well-known franchise).
   
4. Choose an agent who handles homes in your price range. Some agents specialize in high-end houses or in low-budget properties. Each of these agents may not be able to do the best job for you if you're looking for a home in another price range.
   
5. Choose an agent who will provide other services. Their help is invaluable when it comes to arranging house inspections, finding a real estate attorney or conducting a study of the property's value.
   
6. Choose an agent you get along with. This seems like a no-brainer, but you'd be surprised. It's important that you be able to work with your agent. Make sure he or she takes the time to explain things you don't understand, works on your time schedule, and whose personality clicks well with you.