Buyer's Guide

There is a difference between your budget and the total loan amount a mortgage company will give you. In many cases, a mortgage company will pre-approve you for more than you’re comfortable spending, which is why you need to determine the total monthly payment you are comfortable with before talking to a lender. This likely includes doing a full household budget and taking into consideration what changes other than a mortgage payment will occur once you move into your new home. If you’ve lived in an apartment or with roommates, you may overlook new expenses like common utilities, property taxes, HOA fees, and ongoing maintenance that could easily blow your budget.

Can you shop for, look at, and ultimately make an offer on a home without a real estate agent? Technically yes, but why would you? The value an experienced advisor and skilled negotiator brings to the table is worth far more than what it could "save" you by trying to do it all yourself. An agent has a fiduciary duty to his client, and working with a professional helps you avoid detrimental mistakes that could cost you far more. Plus, a good agent takes much of the stress off your shoulders. As your representative, not only will I help identify properties you might be interested in, arrange showings, handle the offer process, and take you through the entire escrow from start to finish (which includes too many details to list), but I will do it all in a manner that keeps you safe, informed, and confident in your decisions. Above all, I procure dream homes for my clients. There is no room for error. Looking back to Step 3, I encourage buyers to find an agent before choosing a lender and getting pre-approved. Most agents have worked with great lenders and know first-hand the differences between various types of lenders (e.g. brokers, direct lenders, credit unions, portfolio, etc.). Choosing the right financing can make a huge difference in your qualifications and the overall strength of your offer. (Continue to Step 5 )

Once you have selected the perfect home, we will work together to craft an effective offer. The value of comparable homes on the market is not the only factor to consider. Aside from your needs, each seller also has unique needs and reasons for considering many other terms. Expert negotiators gather all the information before helping their buyers determine what kind of offer will achieve their client's objective. Depending on the current market, your offer may be below, at, or even above the home's asking price. Either way, I will help you and the seller reach mutual agreement and, most importantly, protect your deposit and other interests at all time. Once the seller accepts your offer, or you accept their counteroffer, the home will go into escrow.

At this point, your lender will have already underwritten your credit and income. Final loan approval rests on supplying documents for remaining loan conditions, satisfying specific items of the purchase agreement, a title commitment, and depositing the rest of your closing funds (aka your down payment). Your lender will advise you on when to lock your rate, if that hasn't been done already. Now is the time to resist any urges to purchase new furniture, appliances, or open any new lines of credit. Although most purchase agreements are also contingent on your final loan approval, a loan contingency is typically removed at least one week before closing. Any changes to your credit profile can jeopardize your final loan approval, and I cannot stress enough how important it is to avoid any changes of any kind to your credit report and FICO, unless managed by your loan officer deliberately for your benefit. Your lender will work closely with the escrow officer to determine exact closing dates, fees, payoffs, and other items that affect a smooth and timely transfer of ownership. When closing day arrives, each party will be ready to meet all their obligations. For a buyer, that means signing loan documents and transferring closing funds. For a seller, that means signing the transfer deed, and of course, moving out in time to deliver the home to the new owner in the proper condition by the time specified in the contract.

No one looks forward to all the paperwork involved in buying a home, but it’s a necessary part of the process. Fortunately, everything will be arranged by your escrow officer, lender, title company, and real estate agent, and when you’re finished, you’ll know with official certainty that you are the legal owner of your new home.