For Buyers
Looking for a church home? Try St. Andrew's United Methodist in Arlington!
Sharon is an active member at the church and loves it....you will too!
Why The Real Estate Connection only works under Buyer Representation Agreements...
so you'll have someone looking out for YOU!
Financing Tips
Before you start looking
Closing Costs
In the state of Texas, Realtors and real estate agents represent the Seller, UNLESS you are working under a Buyer Representation Agreement with the real estate agent. So, that agent you've been working with is really representing the Sellers of all the homes you've seen! Imagine that....working with you, but representing the Seller. That means the Seller's best interest are being considered not yours!!!
The Buyer Representation Agreement is similar to a listing agreement in that it is a legally binding contract between you and the real estate professional. The Agreement simply says that you agree to work with that one agent and that agent agrees to look after your best interest -- providing a market analysis on the home you choose, divulging all secrets known to them, and making sure you know everything you need to know before you begin negotiations on your new home.Many companies charge transaction fees and/or retainers for this real estate service. I don't! I believe that Buyers are entitled to Representation without any additional charges. There is never a transaction fee or retainer fee charged. I collect my commission from the Seller at the time of closing.
For our Relocation Buyers, I'll put together a relocation packet for you including information on the areas and schools. We'll even send you a detailed comparison report between where you live now and where you're planning to move. I can do this for any area in the nation!!! Just ask! I'll put it together for you, and give you a call when I'm ready to send it. In order for me to start this presentation I'll need your valid email address, current mailing address and a valid phone number I can call you when I've completed this presentation.
As a Buyer Representative it is my job to keep you updated throughout the process. If I discover any information that could benefit you in the purchase of your home, I'm obligated to share that information with you! On the same token, I'm obligated to not share any information I know about you that might help the seller receive a better price, terms, etc.
So, you can see why it makes sense to hire a Buyer Representative to work with you when you are thinking about making a move to a new home. As a Buyer Representative I can represent you on any home -- existing, new construction, even For Sale by Owner properties!!!!
Tip # 1. Don’t go beyond your budget. A home should be a source of satisfaction and an investment not a financial albatross. It is not worth being 'married to your house.' Borrowing heavily from family members, selling assets, and living poor just to own a bigger or better home, risks difficulties in the future.
Tip # 2. When choosing a lender always shop for competitive rates, points, and fees. Get at least three bids. The most competitive lender one week may not be next week so get (or reconfirm) quotes the same week you are ready to make the commitment.
Tip #3. Get an immediate written confirmation of your locked in interest rate and interest rate terms (i.e. if you are locking the rate, ask if you can relock if rates drop, etc.), points, and fees, you might find some discrepancies with the figures used on the final loan documents.
Tip #4. Don’t agree to prepayment penalties. You may want to refinance or partially prepay part of the mortgage. If there is no mention of prepayment penalties, make sure you have an addendum attached to the mortgage specifying that no fees will be imposed. Always ask your lender about this up front.
Tip #5. Understand all the conditions of your loan. You or a professional that you trust should thoroughly scrutinize each document (an attorney or CPA). Ask questions if you aren’t sure what something means.
Tip #6. Choose the right kind of loan. Rates are higher on 30 year loans than on comparable 15 year loans. That's because there is a greater risk that rates will go up the longer the lender commits to a fixed rate. Lenders hate holding loans at below market rates. If you want both the security of predictable payments and the lowest monthly payment consider "hybrid" loans - those with a fixed rate for the first five or seven years of their 30 year term. If you are going to be there for a shorter period, or have confidence that rates will be dropping further, consider an adjustable rate mortgage.
Tip #7. Get a pre-approved mortgage or contingent loan approval letter. The former is a binding commitment for a loan up to a certain amount. It can substantially strengthen your negotiating position with the seller, but it puts pressure on you to close a deal before the loan commitment expires. A contingent approval is a letter from a lender that states the largest loan you would qualify for, subject to confirmation of the financial information you’ve provided and formal approval. It will also give you additional negotiating leverage without binding you to the lender (or vice versa).
Tip #8. Save all your paperwork. Lenders require and provide numerous documents. Some get misplaced, usually at the most critical time. Keep copies of everything you send the lender and everything the lender sends you.
Tip #9. Take advantage of the deduction. The mortgage interest deduction is one of the few remaining tax deductible interest payments, and it’s also the cheapest form of long term financing. Consider financing/refinancing as an alternative source of funds for home improvements or other constructive long term investments like education. Don’t get in over your head, and never use it to finance your summer vacation or other short term pleasures.
Tip #10. Study! A lot of money is at stake You can’t learn too much, and you won’t have time to learn what you need, interview and select a lender in the five days allowed most buyers to apply for a loan. Read the real estate section of your local paper and books on the subject.
Before You Start Looking For Your New Home:
- Check your credit rating. Straighten out any errors before its too late.
- Determine a comfortable monthly budget for your new purchase, including down payment and monthly payment.
- Find a loan program that meets your needs and get pre-qualified (preferably pre-approved).
- Choose a REALTOR® that you trust and who understands your needs.
- Determine what neighborhood best matches your needs.
- Identify important features you need your new home to have.
- Lender fees include charges for loan processing, underwriting, preparation and establishing an escrow account.
- Third-party fees include charges for insurance, title search, and other inspections such as termites.
- Government fees include deed recording and state & local mortgage taxes.
- Escrow and interest fees include homeowner's insurance, loan interest, real estate taxes, and occasionally private mortgage insurance.
