Buyer Tips:

1. Choosing your REALTOR ®

The most important decision you will make in the sale of your home is the REALTOR® you choose. Be sure to find someone you feel comfortable with. If you don't feel you can ask questions or go to your REALTOR®, you have the wrong person. Your REALTOR® should show you research to back up any recommendations. This includes information about recent sales, current listings, and recently expired listings in your neighborhood.

Choose a local REALTOR®. He or she will know your area better than an outsider, will be seen as a source for people looking to relocate in your neighborhood, and will get better co-operation from other agents. It is likely that any amount you might save by having a friend or relative from outside the area serve as your REALTOR® will be lost in their lack of knowledge about your specific local market.
Don’t forget to ask for references from the REALTOR®. He or she should be willing to give you names of previous clients. Ask your friends and acquaintances for recommendations, but make your final choice based on your needs. Ask the REALTOR® to show you what will be done to market your home. Consider the office and company support available to him or her as well as the initiative and professionalism shown by the individual.

Look for a REALTOR® who tells you what he or she knows from experience in the market, and not what they think you want to hear. Flattery may sometimes get the listing, but it doesn't sell the home!

2. Mortgage Application Checklist

The following are some items you should have with you when applying for a mortgage:
1. Copy of your Purchase & Sale Agreement.
2. Your present mortgage information.
3. Two-year history of employment and verification of all income sources.
4. If self-employed, copies of past two years Federal Income Tax Returns.
5. Information about your checking, savings and credit card accounts.
6. Name, account number and outstanding balance of each of your debts.
7. Application deposits.
8. Information about any assets, including information regarding any other assets that will be used as funds to close.
9. If FHA - Copy of Social Security card and photo ID.
10. If VA - Certificate of Eligibility or DD214If Employee Relocation Client.
11. Include relocation information and copy of offer, promissory note and copy of check on bridge loan.

3. Questions For Your Lender

The following are some good questions to discuss with your lender when applying for a home loan:
1. Are both fixed-rate and adjustable mortgage loans available?
2. What is the interest rate?
3. How long can I "lock-in" the financing at the current interest rate?
4. Is a float down lock available in case rates drop after I have locked in?
5. What are the other fees a lender may charge me in conjunction with my loan?
6. Are funds for a second mortgage available?
7. On adjustable loans, how often will the interest rate be adjusted?
8. Is there a maximum limit on each rate change?
9. How often will the monthly payment be adjusted?
10. Is there a ceiling on payment adjustments?
11. Can the term of the loan be extended?
12. What is the maximum rate that can be charged over the life of the loan?
13. Is there any potential for negative amortization?
14. Is there a pre-payment penalty clause? This involves extra charges for paying off the loan before maturity. About 80% of all loans in the United States are paid off early.
15. What is the "grace" period?
16. How late can a monthly payment be made before a late charge is assessed?
17. What will happen if a payment is missed?
18. If you sell your house, will the new buyer (if he/she qualifies) be able to assume your mortgage at the same interest rate?
19. Do you have to pay "points" to get your new mortgage?
20. Usually lenders charge points for the cost of giving you a mortgage loan. A "point" is 1% of the loan.
21. Will the lender require mortgage insurance?
22. Is the loan serviced locally or is the servicing sold? Ask for a written "good faith deposit".

4. Improve Your Chances

With inventory diminishing daily and multiple offers being extremely common, it is of great importance that you position yourself to have the best chance to get your offer accepted.

Enhance your chance of getting the home of your choice by doing the following:

First, get pre-approved for the purchase. This takes very little time and is of great value. At this time, identify the price range for which you qualify and which fits your lifestyle.

Submit a strong competitive offer. Submit the offer as if there will be multiple offers. Include substantial earnest money deposit. Acceptance of an offer is sometimes determined by the amount of the deposit. A larger amount may signify a bigger commitment to the seller.

Minimize or eliminate contingencies; the fewer contingencies, the stronger the offer.

Make a buyer profile available. Include time on the job, flexibility, and reason for purchasing seller's home.

Be prepared to preview a new property quickly. Homes sometimes sell in hours. Be prepared to make decisions quickly and be accessible to change the terms instantly. Buyer and agent need to have instant communication access via office phone, voice mail, fax, pager or cellular phone.

To be quite honest, if you don’t ask for something you probably won’t it. There are times to take certain risks and ask for the moon. Talk to your REALTOR® and they will guide you on the timing and probability of these things. Just don’t be afraid to submit offers!