Six Simple Steps to Ensure a Smooth Home Purchase

1. Check Your Credit.
Before you apply for a home loan, regardless of
your credit, it's a smart idea to obtain a copy of your
credit report from the three major credit bureaus
and review the information. If there are errors or
things that need to be addressed, it's easier to
address them before you have found a house,
than after you have found a house and are trying
to close your loan.

If you know that there are a few blemishes on your credit, let your lender know what they are, why they are there, and why you are a still good credit risk. Lenders look at your credit to determine how likely you will pay back the loan. If you had extenuating circumstances - like a loss of a job or medical
bills - let them know so that they understand
that it is not likely to happen again in the future.

2. Get Pre-Approved Before You Buy.
Getting pre-approved means that a lender has reviewed your credit history, verified your assets
and employment, and has given preliminary loan
approval before you have even found a home to
purchase. As long as the home appraises for at
least the purchase price, the loan should close.

Getting pre-approved can give you an advantage
over other buyers. Your firm pre-approval makes
it easier for you to negotiate on the price of a home
and makes your offer much stronger than the buyer
who has been merely pre-qualified or who has yet
to even speak with a lender.

While getting pre-qualified may sound official, it's
really just getting an idea of what you can afford
and carries much less weight with a Seller than
a pre-approval. It's having a person plug in a few
numbers that you give them (your monthly income
and monthly debt) and then calculating an
approximate monthly payment based on these
numbers. From this payment, the calculator can
then approximate the price-range of a home that
you can afford to purchase. No information is
verified. Because your assets, income and credit
are not verified, a pre-qualification has little value
when purchasing a home.

3. Find a Great Buyer's Agent.
Traditionally real estate agents represent the Seller
in a transaction. When you are not working with a
Buyer's Agent, and are therefore unrepresented in
the transaction, they are less likely to negotiate the
best price or contingencies for you. In fact, they
are obligated by contract to look out for the best
interests of their client—the Seller.

On the other hand, a Buyer's Agent's fiduciary
responsibility (meaning legal duty) is to you—the
Buyer. Before working with an agent, establish if
they are a Buyer's Agent or Seller's Agent. After
spending a lot of time with a Realtor, it's natural to
feel like you're a team and that they are on your side, but if they are not representing you and negotiating
on your behalf (with your best interests in mind)
then they are not on your team.

For the remaining 3 steps, simply check the box to the left of the report name, fill out the form below and it will be emailed to you immediately!