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FORGET PREQUALIFICATION
Do you want the best home you can locate for the least amount of money?
If your answer is yes, then you must take steps to present yourself as the strongest buyer possible.
Pricing while important, is but a single chip on the negotiating table, often pricing may not be the most important one. Frequently “other terms” may be of greater relevance to the seller. To the seller, how qualified of a buyer you are; is usually more important as they don’t wish to take their property off the market unless the deal has a greater probability of closing than of not.
Other times the length of escrow or date of possession may be factors of influence on their choice of whom to sell their home.
Prequalification is in truth a great misnomer and its meaning all too often misinterpreted. Pre-qualification is not based on any actual proof of credit worthiness. In reality a letter of prequalification is of no value to a seller.
They want to see a loan approval; anything else causes them to negotiate accordingly.
Pre-approval is one of your objectives if you expect to gain the sellers respect and hope to have your offer stand out from the crowd. Yes, it is a greater challenge and does require greater level of commitment. That is exactly what a seller is looking for. They don’t want to take their home off the market until they have confidence that they indeed have it sold.
If you are serious about purchasing a home, this is the single best thing you as a buyer can do.
This pre-approval is a guarantee to the seller that you are qualified to make the purchase and is one of my strongest chips when I sit to negotiate an incredible deal for you.
UNDERSTAND CREDIT
Buying a home requires that you understand the nature of credit and its influence over your purchase. Please check with your lender before buying anything on credit other than the home once you have pre-approval.
In most cases you will be able to make the same purchases you desire such as cars, furniture or even take a vacation after the close of escrow but if you do it before closing it may have significant impact on your ability to make the purchase of the home.
At today’s rates a new monthly debit of $70.00 could have the net effect of reducing your purchasing ability by $10,000.00. A new automobile at $350.00 per month may reduce buying power by as much as $50,000.00. Depending on your price point that could make significant difference in which homes are available for you to choose from.
Applying for credit other than your home loan could take you out of your desired price range or may have the effect of eliminating your chances for a quality loan altogether.
A lender will look at how many credit checks you have on your credit report over the last 12 months. More than two could be trouble for you. This includes cell phones and the infamous “no payment till deals”. Turn down offers to increase existing credit lines and make an effort to pay off those within you ability.
Maintain one of your oldest credit cards to show a long history of satisfactory payments.
SELL FIRST
If you currently own a home, especially in today’s market the best plan of attack is to sell your existing home before embarking on the buying process. The opposite approach leaves you venerable and sets you up for disappointment.
If you do manage to find your dream home you must understand that the seller will probably be reluctant to accept a contingent offer and if they did; they would most likely limit the time your offer remains in effect. They don't care about your difficulty selling your house their mind in on their property and their plans. This in turn may manifest itself as pressure to get the property sold in a timely fashion and at what you feel would be an acceptable price.
I have witnessed such situations and I strictly advise that once you reach a decision to move, put the home on the market. There are provisions that can be inserted into the agreement that will help allow you sufficient time to identify your next home while being sure that your current one does not become a liability to that transaction.
Falling in love with your new dream home before selling an existing one is a formula for heartbreak.
*While the only focus of my business is helping buyers locate and acquire their new home, I am willing to meet with you and help you prepare for the sale of your home. I will offer guidance and information to help facilitate that sale and stand ready to personally represent you
when you are ready to buy.*
The Slate of Do's and Don'ts
I love putting things on paper. This helps me to be clear in my choices and minimize mistakes. Before you visit your first home, get a piece of paper and make two columns. Each column will have nine entries. The first column will list the things you feel you absolutely must have in your next home and the second will list the things you are certain you do not want in it. Take your time with this list. It will be your rating guide for the homes you view.
By keeping an accurate record of how each home relates to top nine wants and don’t wants you will have a better fix on which home comes nearest to meeting all of your desires and needs.
The key word above is nearest. If you begin your search looking for a home that fits 100% of your wants and do not wants you may spend a life time searching. The most perfect home for any family is usually a series of compromises. Search for a home that offers a close fit without the expectation of a perfect fit.
Often times a few simple changes can bring the perfect fit you seek.
While touring homes remember the difference between skin and bones. Bones are the things which do not readily lend themselves to change such as location, lot size, view, school districts, noise levels or floor plans. Skin represents easily changed surface elements such as carpet, paint, wall textures, colors or wall coverings. Seek a home that possesses good bones and a skin which can be adjusted to suit personal taste and desires.
Get Representation
Should you choose to work with me or not, commit to yourself that you will work with someone who best represents your needs and interest. Find a Realtor® (an agent may not necessarily be a Realtor®, there is a difference) in whom you can put your confidence and make the commitment to them and yourself to stay the course as long as they serve your needs and effectively perform their job requirements. It is easy to run yourself into the ground calling enticingly worded ads in your local paper or stopping at every open house sign that you find in your path. Locating the right home is not the result of an accidental occurrence, it will require dedicated effort to locate, negotiate and close the transaction before you can move in.
As a dedicated House Buyers RepresentativeI work for you, only you and am responsible only to you. My fee is 100% commission which means that unless I find you a home and help you actually own it that I DO NOT GET PAID. The best part of this is that even when we finally close on your dream home my fees are usually paid from the sellers proceeds which mean that you get the very best of service and representation without having to be responsible for the cost.
My best efforts come at absolutely no cost to you.
Remember a selling agent’s primary and fiduciary responsibility is to his seller. You are entitled to the exact same rights and representations that the seller enjoys. Don’t give these precious rights away. Seek personal representation via a Buyer’s Broker Agreement. This California Association of Realtors® form is your personal guarantee that my primary and fiduciary responsibility is to properly represent you in the transactions we enter as a result of it. With is comes my personal assurance that you will receive 100% of my efforts to assist you in the realization of your goals. It is a commitment from each of us to the other to faithfully perform our parts in the process of finding your next home.
My clients enjoy the peace of mind that comes from knowing that they are properly represented and have the freedom to view a home without being hassled for personal information by a stranger. By telling the agent holding an open house that you are represented; you then enjoy the freedom to view the home for its merits without pressures from that agent.
What a joy!
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Allow me to take the worry out of buying a home for you.
Call me today
Darrel Quebedeaux
Realtor
®
714-317-4366
djq@socal.rr.com
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