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Be a savvy first-time buyer
Buying a home can be a little daunting — especially for first-time home buyers. Here are some pointers for those entering this arena for the first time:
Take a day or two away from work to search for a home.
If you’re seeking a first home in the same general area where you now rent, you may be inclined to do all your home shopping on weekends. But weekends are when competition heats up for plum properties.
By taking some weekday time off from your work you could be the early bird who puts in a successful offer on a home — even before a weekend open house is held to show the place. If the economy is robust, you may need the competitive edge that a weekday search could give you relative to rival purchasers.
Another advantage is that you’ll command more attention from your agent on weekdays, when there are fewer demands on his or her time.
Be ready to jump immediately when you find the right home.
By now, most homebuyers are aware that they should visit the office of a mortgage lender before they go house hunting. But only 20 percent of would-be buyers take that first step, and still fewer take the time to get a letter of "pre-approval" from the lender. There’s no substitute for asking a lender for a letter indicating exactly how much you can borrow. This is especially important for a buyer who is self-employed.(up)
Whether you’re self-employed or not, you can avoid the torture of picking a property beyond your reach by asking a mortgage lender for a pre-approval letter before you become emotionally entangled with a property. Such a letter could also give you a competitive advantage if you’re facing other rivals for the same home. "Boy, does it make a good impression on the seller to have one of those letters from the lender," one experienced negotiator says.
Select a home inspector who casts a sharp eye on your property.
Some first-timers fear they’ll be directed to a home inspector who deliberately does a superficial job to be sure the deal between buyer and seller goes through. After all, a sour deal means no commission for the agent.
But real estate agents have a strong personal stake in seeing that buyers have a home thoroughly inspected. In an increasingly litigious society, they don’t want to be held accountable if an unhappy buyer sues.
"I don’t want the inspector working for me. I want the inspector working for the customer," says one broker-associate.
Don’t let expected interest rate fluctuations drive your purchase.
The American economy is producing some very low mortgage rates. At this point, some economists believe rates will rise while others think they’ll fall. No matter who you believe, it’s unwise to let the expectation of minor interest rate changes drive your home selection.
It makes no sense to attempt a strategy that would gain you a quarter percentage point if that’s going to cost you your dream home. (up)
Smart Moves by Ellen James Martin. Copyright 1998 Universal Press Syndicate. Reprinted with permission. All rights reserved. Copyright 1998 Norwest Mortgage, Inc. All rights reserved. This material may not be reproduced in any format without written permission. Norwest Mortgage and design is a registered service mark of Norwest Corporation. Information subject to change without notice. 8A0601C
