Projects tend to be more successful when there is a great team working together. You could look at purchasing a home as a big project. It is probably the biggest financial investment you will ever make and more importantly, is where you and your family will live and make memories. Before embarking on this journey, it is a good idea to assemble your expert home buying team to assist you in making the best decision. There are 3 people/roles that can help you work through the process and end up in a home that you and your family will be happy with for years!
Mortgage Broker
Before you start to look at homes, you should meet with a mortgage broker and get pre-qualified. A broker has lots of options and speaking with them is like applying at a dozen banks. They will take one application and run one credit bureau report and sit with you to discuss your personal situation and what your options are. You might not have straight-forward employment, you might have some blemishes on your credit, you might not quite have the full down payment yet, you might need a co-signer…..there are many possibilities and every person is unique and different. A mortgage broker has lots of lenders to utilize and will work with you ahead of time to get your paperwork together. The best part is that in almost all cases, using the services of a mortgage broker does not cost you any money. They are compensated by the lender that you ultimately select. They will work out the financials with you and if you qualify, will be able to tell you what your purchase limit is. If the timing isn’t quite right, they can help you by working on a plan to get you where you need to be to buy your first home. It’s important to know what your purchasing power is before you go out and look at homes so that you are not disappointed later on. Your real estate agent will also want to ensure that they are only showing you homes that you can afford. That brings me to the next person in your expert group…..
Realtor
Some people think that it costs money to use a real estate agent to buy a home. The truth is that does not. Other people feel that they don’t need a realtor and that when they see a home they like, they will just call the person whose name is on the ‘for sale’ sign. The realtor is paid by the person selling the house you buy. It is important to have your own representation because that realtor was hired by the seller of the home and their job is to market the property and get the maximum price possible. You want your realtor to work for YOU and ensure that you are buying a good home and that you are getting it for the best price. It would be very difficult for one realtor to play both sides of that situation and do it well. You should find a realtor that you are comfortable talking to. Someone who will ask what your needs and wants are and work with you to find the best property. They will research areas, compare sale prices and ensure that you aren’t going to pay too much for the home. Then they will coach you through the process of putting in an offer that hopefully results in a successful purchase. They will also work with your mortgage broker as you move through the financing process once you have an accepted offer and ensure that all of the timelines are met. Most realtors will also be able to recommend the 3rd member of your home team……
Home Inspector
If at all possible, it is always a good idea to have the home inspected before you sign on the dotted line. Not everything is visible to the naked eye and it takes someone trained and experienced to know what to look for to ensure that there isn’t obvious trouble on the horizon. You might not notice that the floor is a bit sloped or that there is a crack in the wall that looks like it’s been repaired or that there are signs of previous water damage. Finding these things doesn’t mean that you don’t purchase that home, but there may now be some negotiation on the price if there are things that will need to be fixed. You will receive a report from the inspector and then you and your realtor can make a more educated decision on whether you want to move forward with that purchase and at what price. A home inspection can cost a few hundred dollars but it is well worth that if it helps you avoid a costly repair down the road.
There are other roles involved in purchasing a home such as home insurance and a lawyer to complete the transaction but they are typically just one smaller part of the whole process. Both mortgage brokers and realtors will be able to refer you to people they trust. If you have any questions about these roles or how any of this works, please reach out to me and I would be happy to help. I can recommend some realtors and home inspectors that I have worked with in the past to help you as well. We would all be very happy to be YOUR team as you purchase your first home!