Step 1-Find out how much home you can afford

This may seem obvious to you but believe it or not, most people don’t know how much home they can afford to buy. Would you go to the grocery store to do your weekly shopping if you had no idea how much money you had to spend? Probably not. You would look at your budget and stay within those basic constraints. The same thing holds true when buying a home, but on a much larger scale. Discovering how much home you can afford is called,pre-qualifying . This is a very simple and painless procedure, which can usually be done over the phone by an experienced professional called a“broker.”  The broker will review your income, debts, and expenses to arrive at a fairly accurate estimation of how much home you can afford. If you prefer, a representative from our company will run your information through our Computerized Analysis System giving you a very accurate account of how much home you can afford. There is no cost for this service and we are glad to do it.Often, you’ll qualify for much more home than you thought you would!  We then go over exactly what your wants, needs, and desires are and then custom tailor a loan especially for you and your needs. We call this our“Value Plan,” giving you a loan amount, combined with favorable interest rates and comfortable payments makes moving on to Step 2 easy.

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Step 2-Pre-Approval– The key to success!

Pre-approval means getting approved for your mortgage ahead of time. Don’t confuse this with pre qualifying.  Pre-approval is where you actually apply for the loan and get approved by a lender for a specific amount of money and a specific loan to value ratio. The loan to value ratio is the percentage of the loan amount in relation to the value of the home, the difference is your down payment. We have been able to get many of our customers their “dream homes” withas little as $500 down. Now when you find your “dream home,” you only need an appraisal and you can close on your home in only one week! This is a very valuable buying tool! It gives you the negotiating power of a cash buyer, which often could save you thousands of dollars off the price of your “dream home.” Here’s how…You and another buyer both put offers on the same home at the same time but your offer is for $1,200 less. The other buyer didn’t get pre-approved, this means if the seller accepts their offer, they must take their home off the market for a month or more while the buyers go through this process. If they don’t get approved then the sellers have to start all over by putting their home back on the market again. Most people believe that a bird in the hand is worth two in the bush and would rather have your guaranteed offer of $1,200 less with a quick, smooth cash-like closing.You just saved $1,200! Imagine how much more negotiating power you would have on a distressed property where the sellers NEED cash fast, or on a foreclosed or repossessed property. This really works! Another advantage is that your Realtor will work extra hard for you, concentrating all his efforts on finding you your dream home since he knows you’re already approved for a loan. The only thing standing between him and a sale is that he needs to find you your dream home. Pretty strong incentive.  Also if you have any credit blemishes, this will give us ample time to get them cleared up for you!

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Step 3-Get FREE Professional Help

Now that you know how much house you can afford to buy, and how much money you’ll need to close, it’s time for the fun part… finding your “dream home.” If you’re like most people these days you don’t have much time to go driving around looking at several homes just to find out that most of them aren’t at all what you’re looking for. This is where it pays to use a professional Realtor. The seller of the home usually pays the commissions for the Realtors, so it’s like you’regetting the services of a professional for absolutely free. Let them weed out all the homes you’re not interested in, this way you only spend time assessing the homes with true potential. Taking a little time in the beginning to get the right people on“your team” will save you time, effort, money, and grief later on.  Here are a few tips for finding and choosing the right Realtor:

1. Ask friends and family for names of Realtors that have done a great job for them in the past.

2. Ask a qualified mortgage professional for the names of his favorite Realtors. It is very important that your mortgage broker and real estate agent work well together. Any mortgage broker that is active should have a good relationship with many of the more respected Realtors in town and will be happy to refer you to them. Our company has a computerized network Realtor referral system. As a free service to the community, we will be happy to enter the parameters of your dream home into our system and give you the names of the Realtors we work very closely with that specialize in the desired area and price range of your “dream home.”

3. Drive the area. If you already have a good idea of where you want to buy, drive around in that area and look for the one or two really prominent Realtor signs. Chances are strong that they know a great deal about the strengths of that area and which ones are offering the best deals.

4. Interview the Realtors. This is very important. You are about to enlist this person to represent you in possibly the biggest purchase of your life. You must feel comfortable with their knowledge, experience, and integrity. Don’t be shy to call and ask them questions, not only about their experience and what they can do, but also about themselves so you can get a real feel for that person.  You need to feel comfortable with the person helping you to find your “dream home.”

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Step 4-Finding your dream home quickly!

Now it is time to put your Realtor to work finding your ideal dream home. The key is to be very specific when describing your home requirements. This helps the Realtor narrow it down for you.There is no reason to look at 100 homes when you can find your “dream home” in a narrowed down selection of only 4 or 5. After driving by the potential homes your Realtor suggests, choose the ones that most closely resemble your desired home from the outside. Your Realtor will then give you a tour inside these homes and when you find your “dream home,” your Realtor will help you negotiate the deal.This is the surest, quickest, and most effective way to find your perfect home.

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Step 5-Negotiate the LOWEST sales price

So you and your Realtor have found the perfect house, in the perfect neighborhood, -your “dream home.” You know you can afford it because you’re pre-approved…GREAT! Now comes the negotiation. Remember that a home purchase is a free market, arms length transaction between a willing seller and an able buyer, the price is whatever you agree upon. It is usually best to allow the Realtor to negotiate on your behalf. They have experience in negotiating on properties and can usually do a better job, remember this is what they do for a living. They will work with you by pulling up all the comparable sales in that area in the past year and discuss with you the proper strategy for your offer. The average home sells for close to 95% of the asking price.Being pre-approved can help you increase that difference. Since there are so many factors that go into negotiation, it would be difficult to outline them all here– every sale is unique. Your Realtor should be able to answer all your real estate questions.  If you have any questions about these 5 Easy Steps, please contact your Home Sweet Loans Specialist.

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