Purchasing a home is one of the biggest decisions most people will make in their life. It involves a long-term commitment financially and emotionally, but it can also be a very exciting and rewarding experience.

When buying a new home, there are a few things to consider:

• What monthly payment can I afford?
• What am I looking for in a home?
• Should I work with a REALTOR®?
• Once I find a home to purchase, what do I need to do next?
• How much cash do I need at closing?
• How do I obtain a mortgage loan?

Before You Begin Your Search

Before you actually begin the process of looking at homes, you should complete the following:

Get Pre-Qualified: Unless you are able to pay cash for your home, most buyers will need to go through the process of applying for a mortgage. By contacting a mortgage loan specialist before you begin your search, you are able to determine the amount of loan for which you qualify. Typically, a borrower is pre-qualified for a loan that amounts to 28%, or less, of their gross monthly income. In addition, if you know the amount of the monthly payment you would be comfortable paying, a mortgage specialist can calculate the price range for your home search. Getting pre-qualified for a loan also increases your chances of your offer being accepted. A seller is more likely to accept an offer from a buyer who already has funding versus one who still needs to get a loan.

Prior to getting pre-qualified, you should obtain a copy of your credit report so that there are not any negative surprises when you are ready to apply for your loan. Correct any errors that you may discover on your credit report. Also, you will want to reduce your consumer debt as much as possible by paying down credit card balances. By going through the pre-qualification process, your mortgage specialist can provide you with an estimate of how much cash you will need for the sales transaction. Cash is needed for the down payment, earnest money, and closing costs of the transaction.

Once you have made the decision to purchase or sell a home, the next step is to find a real estate agent who will best represent you and your housing needs.
There are three types of real estate agencies: the Buyer’s Agent, the Seller’s Agent, and the Dual Agent.
These are the three typical Agent/Client relationships that may occur. The terms of these relationships may vary from state to state, so please verify the terms of these Agency Agreements in your local area before signing any agreements.

The Buyer’s Agent

Many prospective home buyers do not feel it is necessary to contract the services of a real estate agent. They feel that the listing agent will represent them fairly during the buying process. However, what many buyers do not know is that the listing agent, or Seller’s Agency, works solely on behalf of, and in the best interest of the home seller. Therefore, it is essential that the buyer seek out and find a Buyer’s Agent that will best meet their needs.
A Buyer’s Agency works solely on behalf of the buyer. The buyer’s agent will assist their client in the negotiation of the terms of a contract. In addition, they will gather information on zoning issues, past tax data, schools and community services, and any other information deemed necessary by the buyer before making the decision to extend an offer on a home.

Many prospective home buyers have the misconception that once they begin working with an agent, he/she represents the buyer. However, this is not always the case. Unless there is a signed Buyer’s Agency Agreement, the agent that is working with the buyer still represents the seller’s interests in the transaction. Without the agreement, there is certain information that the agent cannot disclose to the prospective buyer:

Nam enim risus, molestie et, porta ac, aliquam ac, risus. Quisque lobortis. Phasellus pellentesque purus in massa. Aenean in pede. Phasellus ac libero ac tellus pellentesque semper.

Nam enim risus, molestie et, porta ac, aliquam ac, risus. Quisque lobortis. Phasellus pellentesque purus in massa. Aenean in pede. Phasellus ac libero ac tellus pellentesque semper.

Nam enim risus, molestie et, porta ac, aliquam ac, risus. Quisque lobortis. Phasellus pellentesque purus in massa. Aenean in pede. Phasellus ac libero ac tellus pellentesque semper.

Nam enim risus, molestie et, porta ac, aliquam ac, risus. Quisque lobortis. Phasellus pellentesque purus in massa. Aenean in pede. Phasellus ac libero ac tellus pellentesque semper.