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This is the 2nd of 2 part blog post geared towards first time home buyers. You can read part 1 here.
4. Work with a Top Realtor. After you know what you are looking for and what location to find in, it’s time to enlist the help of a top area real estate professional. Actually, it may be wise to take this step right away, as your realtor can be very helpful with steps 1-3. In any case, make sure you are working with someone that knows the neighborhood you want to buy into and is a good negotiator. Remember, commission is usually paid by the seller so there is no reason for a buyer not to enlist the help of a top realtor.
For those in the Phoenix Area, we publish an annual “best of the best” real estate agent directory to help local find quality agents. We also back these agents with a $1,000 performance guarantee.
5. Get Pre-Qualified. Your realtor will likely advise you to become pre-qualified with a mortgage broker so you know how much house you are able to buy. In many cases, your realtor may also be able to refer you to a reputable mortgage broker to help you with this process. Being pre-qualified is a great advantage because once you locate the home you really want to buy; you are already in a position to make a serious offer. In addition, if the seller knows that you are already pre-qualified, they are much more likely to accept your proposal, knowing you are able to follow through with the purchase.
6. Determine your monthly housing budget. This is where many home buyers go astray – they assume that because they are pre-qualified for a certain amount of financing, they can automatically afford the home they want to purchase. Then once they move in, they discover costs they had not considered such as utilities, insurance, property taxes, association fees, cable TV, etc. Before moving forward with a purchase, sit down and do an in-depth monthly budget to ensure you can really afford it. This will save you a ton of heartache in the end.
I hope you have found this helpful on your home buying journey. Feel free to visit my site to download my free home buyers guide.