Archive for February, 2011

Step 5:  Choose Your Realtor and Your Lender

Well, you’ve saved and researched, checked your credit, and determined your comfort level for spending on your new home.  If you haven’t come across a good lender or real estate agent yet, now’s the time to make the leap.

Pay attention to the agents who have responded to you in a timely, thorough fashion, answering your questions and offering additional relevant information as needed.  Try to ensure that both of you are on the same page with regard to your needs, timelines and goals, and that your personalities mesh.  I firmly believe that finding your next home should be a mostly fun and pleasant experience, rather than a completely stress-inducing event.  If you’re starting to feel totally overwhelmed and stressed out, it may be time to search further for the right Realtor before making a decision about who to move forward with.  After all, you may be spending quite a lot of time with this person, for at least the next several weeks, if not months!

It makes a lot of sense to sit down with a prospective agent at their firm, meeting to talk about the market, the home buying process, the steps you’ll need to take, and what you should be aware of along the way.  It may be helpful to both you and the agent to schedule an additional appointment to see some properties together, to ensure that you both have a chance to evaluate the prospect of working with each other.  It is absolutely in a buyer’s best interests to work closely with one Realtor, who will then get to know exactly what they’re looking for and who can be ever vigilant in looking for homes and home features that would work best for them; signing a buyer-broker agreement ensures the buyer’s interests are well cared for.

While you’re talking with your Realtor, make sure to ask which mortgage brokers they recommend – after all, they are actively involved in the real estate processes all the time, and should be able to give you good solid referrals from their recent past experiences with other clients.  And most likely, if you’re in synch with a realtor, who works frequently with particular lenders, you’ll also be in synch with that lender.  My clients frequently talk at settlement about how wonderful it was to work with both of us together, assisting them together all along the way, and knowing that we all had their best interests at heart.

Did you miss the first four  Steps to Buying a Howard County Home in 2011?   Step 1 |  Step 2 |    Step 3|    Step 4

Best regards, Gretchen

Step 4:  What Are You Spending Monthly Now, and How Is That Working For You?

How much are you comfortable spending each month?  Have you thought that out already?  That’s a question only you can answer.  In years past, there were certainly homeowners who felt they’d been pushed into borrowing more than they should have, blaming the lender or real estate agent.  Frequently, however, there have also been homeowners choosing to overspend on their own.  At any rate, if someone tells you they can approve you for more than you think you want to spend, take a step back and think about your own level of comfort for the foreseeable future.

Stop and sort out what’s best for you.  And think monthly, because that’s generally how bills are paid out, and how paychecks come in.  Know your monthly expenses, including both your needs and the wants that you determine are the most important to you.  Coming up with your own preliminary numbers before talking with a lender will give you a baseline to start from.  There will always be some room for fluctuation with the amount of the mortgage, the assets used towards the down payment, the interest rate on the loan, but again, it’s a good starting point.

I find that when my buyers understand that I’m their Realtor for the long haul, not just for this transaction but for all of their real estate questions and needs into the future, their appreciation and trust in me naturally rise.  I want them to be reminded that they love their new place every time they come home, and to know that I did everything I could to ensure that’s how they would feel.  And in their best interests, I choose to work with lenders who operate with a similar mindset, ensuring that my clients are well taken care of from the very beginning.

Did you miss the first three Steps to Buying a Howard County Home in 2011?  Step 1 |    Step 2|    Step 3

Best regards, Gretchen