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Top 5 Things You Should Know Before Going House Shopping

  • David J. Moore M.B.A.
  • Jan 19, 2016
  • 6 min read

Young Professionals Network

Top 5 things you should know before going house shopping this weekend Below are some helpful tips if you are out this weekend, (or any weekend for that matter) during a busy buying season

1) Get Pre Qualified for a Home Mortgage. ALWAYS know how much you are able to spend on a home by being pre-approved by a competent mortgage loan office.

Just like having a good quality Real Estate Agent can make a huge difference in what you buy, having the right mortgage loan officer can definitely help you choose the right mortgage that you should be in. There are many very good and honest mortgage loan officers, just as well as there are very bad ones that you should avoid as well. Having a good mortgage loan officer should help complete your "team" of experts that has your best interest out so you can feel confident that what you are getting into whether it be a mortgage loan, or the right house for you and your family. Make sure your mortgage loan officer knows a LOT about your overall financial situation. This generally means: credit history, income, time on your job, assets, living situation, as well as what your plans are for the new home just to name a few. Divulging as much information as possible will help your mortgage lender make recommendations on which is the best mortgage for your particular situation.

Just like a doctor makes diagnosis, a good and competent mortgage loan officer will recommend which mortgage loan will be most beneficial to you for you since everybody's situation is different.

Often times, I will come across people, who will want to hold some information back for one reason or another and it can cause problems in the underwriting process since everything nowadays is 100% verified so there are very little "loopholes" anymore.

Also keep in mind that everything you say is absolutely 100% confidential, so make sure you tell your loan officer as much information as possible no matter if there are things you would rather not reveal about your past.

3) Use a good Real Estate Agent who is competent and knows the area very well. I always recommend using a good competent Realtor. They are professionals in their field and can help you see and understand stuff that you would never be able to without using one.

Realtor's constantly look at houses all the time, so just like you are an expert in your line of work, a good Realtor will often have insight about a particular house that you would not typically know. Such items are things as: which type of roof is better at saving energy, the type of grass that will require more/less watering therefore affecting your water bill, the type of counter top or flooring which requires extra cleaning or care, and especially about the particular neighborhood that you will be moving to. I've even been surprised to find out that certain Realtor's even know about the type of Trees that can shade your house better for the hot summer months. Most people generally don't have the expertise about all of these items, despite how much they think they know. That even goes for you contractors also, who know everything about all the material items that go into construction of a house, But a good quality Realtor can give you insight to the house's prior transaction history as well as pertinent neighborhood information which simple building materials aren't able to do for the borrower

3) In a busy buying season where there are more buyers than sellers, don't be overtly extremely picky about the interior of your home.

Right now, in this market, especially in certain markets, these options can be limited. However, keep in mind that when you own your home, you can turn it into your ideal living space. Unlike renting, you have the freedom to renovate, remodel and even expand as you please. Your ideal home, does not have to be absolutely perfect right as you buy it. Instead, try to see the possibilities of what a homes interior can become. I have several people in the home remodeling industry who can transform a house in a few weeks into a completely different look. Even if you don't have to hire an expert in home remodeling, just replacing some carpet and repainting the walls can have a DRAMATIC impact on the visual interior of a house. 4) Depending on where the home is located, a particular home may become worth more than you paid for it, Or less even. Find out the value of any home using the Chase home value Estimator, Zillow, or ask your real estate agent to pull comparable sales from your local title company agency. If you find that a good value is identified for the price the home is listing, make sure you ask questions. In General (depending on the market of course), Houses should not be sitting on the local Multiple Listing Service for more than 60 days with this many home buyers out looking. Keep in mind there are a lot of variable's with that general statement. Ask how long the house has been on the market and other things of that nature if the home has been listed for a while. In my professional experience, generally if something cannot sell, it can be an indication of things such as an overpriced listing, or a hidden situation that is not able to be seen visually about the home. I've seen many fully executed purchase contracts come across my desk for financing which fell out of escrow because something comes up during inspections or appraisal such as appraisal came in at a low value, etc. Sometimes even, if little minor things come up during the inspections and the buyer wants certain items fixed and the seller is unwilling to negotiate with anybody, I've seen those small little tiny details can cause a transaction to fall out of escrow because the parties are unwilling to negotiate. Keep in mind, however that low appraisals are not always the case, I have seen several instances that the appraisal for a property can come in thousands of dollars over the purchase price, which gives you INSTANT equity in the place. With home values going up in most average markets by about 7-8% per year right now, that is a pretty good return on a tangible assets which your family can also live in and enjoy. 5) Have the right people you can trust work with you. I can't stress this enough to have somebody you trust to work with in your home search process. For most Americans purchasing a home is the #1 largest financial transaction of your lifetime. Get to know who you are working with and spend time asking them questions, whether its your mortgage loan officer, or Realtor, until you are comfortable knowing that they are competent and trustworthy enough to help you and your family in your home search. I always look at it like this; if you were asking a pilot who was going to fly your family from one state to another, ask simple questions a pilot should know. If he/she didn't know the answers or have a resource that he could gain the answers from, then definitely don't take that flight. That person is not the right one for you since there are other very willing pilots (Realtor or Mortgage experts), who are competent and would gladly take you and your family on that journey.

In this Industry of Real Estate, there is nobody that is the expert in absolutely everything. There are professionals who have experience in certain areas, while others, have knowledge in very different parts of the transaction. A lot of times in this business, I see professionals get caught up in their own ego or personality differences with other professionals at the sake of their own customer's expense. This should not be the case.

Try and keep your goal of closing the loan as the main focus for everybody involved whether you are a real estate agent or a buyer/seller. I have no idea how many transactions I've saved because I was simply able to calm the borrower down and distract his/her focus on what issue upsetting him or her at any given moment.

One of my favorite things to do in my business is go with a customer out to a golf course and play 9 holes or so. (It's very cliche' I know) However that it is a fantastic way to spend some time with your customer and also get them to settle down a bit so they can think logically.

Often times, if you don't get with your customer when they are upset with the seller or whatever the situation is, their neighbor or family will get to them with their own "expertise advice", which can often pour fuel on the fire.</h3> What we all need to keep in mind is that our customers are the life-blood of our business and are ultimately what keep our businesses successful. Do the very best and honest job for your customers, and you will be remembered by them and referred and rewarded by them accordingly. I hope you all have a fantastic weekend. :)

David J. Moore, MBA CEO - Young Professionals Network

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