Buyers

As a buyer, you deserve to know exactly what you are purchasing. Do not take anything for granted, not even what you see or what the seller or listing agent tells you. A professional home inspection is essential, whether you are buying a new or existing home. It gives an expert the opportunity to thoroughly evaluate the property and provide both verbal and written feedback on its condition.

Before hiring an inspector, confirm that they belong to a reputable local or national professional organization, such as the American Society of Home Inspectors (ASHI). Never skip the inspection and attend it whenever possible. Being present allows you to ask questions and receive objective answers directly from the inspector. Their verbal observations may also be more detailed and revealing than the written report. After the inspection, review the report carefully.

Include a home-inspection contingency in your offer. If the inspection report is unsatisfactory, do not proceed with the purchase. Most real estate contracts already include this contingency but confirm that yours does.

Using a Buyer's Agent

Choose an experienced agent who works in your best interest. Your agent should actively search for suitable homes, keep you informed throughout the process, negotiate strongly on your behalf, and answer your questions promptly and knowledgeably.

First, choose an agent who represents you—not the seller. This can be especially helpful during negotiations. A buyer’s agent must protect your interests, keep your top priorities confidential, and work to help you secure the best possible purchase price.

A buyer’s agent can also give you access to more properties. In addition to searching the Multiple Listing Service, they may identify for-sale-by-owner homes and properties whose owners are considering listing them.

Getting a Legitimate Lender and Getting Pre-Approved

It used to be that buyers could go house shopping and when they have found their dream home, then they go to get pre-approved. However, in today’s market, that has proven to be one of the least effective methods in landing the dream home.

Most lenders can pre-qualify you for a mortgage over the phone by asking general questions about your income, debts, assets, and credit history. This estimate shows how much you may be able to borrow. However, pre-qualification and pre-approval are not the same. Pre-approval means you have formally applied for a mortgage, completed the application, authorized a credit review, and verified your employment, assets, and other required information. Once pre-approved, you know the maximum loan amount you are likely to receive.

A pre-qualification letter is based on unverified information and may carry little weight when you compete with pre-approved buyers. Pre-approval confirms how much you can afford, strengthens your credibility, and assures the seller that you are likely to qualify for financing.

In addition to getting pre-approved, make sure your pre-approval comes from a reputable lender. Reliable lenders may include banks, mortgage bankers, credit unions, savings and loan associations, mortgage brokers, and online lenders.

Avoid lenders who lose forms or misplace files, collect your information in a disorganized way, lack knowledge about interest rates, points, or costs, or cannot provide accurate information.