Buying Your First Home? Realtors Are Your Professional Guides. Make Sure You Choose a Top Expert. 

Five Steps of Home Buying Preparation

1.  Ask yourself: Why do you want to buy a home?

2.  Analyze your budget.  You can use the Rent Versus Buy calculator to learn if buying a home is the right move for you.  Take into account not only the monthly payments, but also some of the benefits of home ownership such as tax savings and home value appreciation.

3.  Get pre-approved!  A good mortgage broker will conduct a verification of your assets and credit.  You will know your limitations ahead of time.

4.  Learn about the mortgage process.  A Realtor and mortgage broker will answer many questions, and you can also pick up some of the numerous books available on the subject.

5.  Hire a buyer agent to guide your through the process.  This agent will provide you with information on the market, availability in your price range, help you focus and save you time. 

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Home Buying Process Overview

Once you find a home, there are several stages before you can call it your own.

1.Offer to Purchase.  I will guide you through the decisions involved in writing an offer.  Important elements to remember are the price, closing date, down payment, and various contingencies.  You want to remain protected throughout the transaction, and make an offer that is likely to be accepted.  You will be expected to provide a $1,000 escrow check and your pre-approval letter.

2.Inspection.  After all negotiations are complete and the seller has accepted your offer, it is time for the home inspection.  This is your time with the house and the opportunity to learn how everything works, and what flaws it may have.  Remember, no house is perfect.

3.Purchase and Sale.  This is the main contract between you and the seller.  It will include all the terms of sale.  The attorneys representing the buyer and seller will negotiate P&S, usually.  You will be expected to deposit approximately 5% of the purchase price into escrow.  (This can be worked out even if you don't have the full amount or if you are applying for 100% financing).

4.Mortgage Commitment.  After a bank appraisal of the property and a review of your finances, the bank will be ready to provide you with the mortgage commitment, approving your application for a loan.

5.Closing.  This is the day you sign you mortgage and the deed to your new home. 

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10 Questions to Ask Before You Hire Buyer's Agent

1.How long have you worked in residential real estate?

Although experience is great, the real estate and mortgage market are so dynamic that a newer agent may be able serve you just as well or even better.  The length of time is not important, it is how comfortable you feel with the person.

2.Do you have experience with First Time Home Buyers?  What are the special needs of a first time homebuyer?  First time homebuyers have different needs than other buyers and deserve more attention.  A first time homebuyer will need more guidance in the mortgage process and the offer stage.  Mortgage broker, attorney and realtor can't expect such a buyer to know all the questions to ask and must ensure the buyer is protected at every stage.

3.How well do you know the area I am considering?  It is helpful when your Realtor is familiar with the housing market of an area.  There are nuances in every neighborhood; difference is streets, housing styles, condo buildings etc.

4.Do you represent sellers as well as buyers?  In general, it is helpful to have a buyer's agent who works as a seller's agent as well.  Understanding both sides will be beneficial during negotiation.

5.What happens if I want to buy a property where you are representing the seller?  Dual agency must be handled delicately.  Learn how your agent will handle this situation before you sign a contract.

6.What are the fees you charge? Note, this is unrelated to closing costs!  A buyer agency contract will have a commission clause, which you must understand.  In the event the seller does not pay commission, you may be obligated to pay a commission on top of all your other expenses.

7.If I am unhappy with your services, may I cancel my buyer agency contract? I firmly believe a buyer should be allowed to cancel a buyer agency contract if unhappy with the agent's services.

8.How will you help me save money and how will you protect my money during escrow?  Before submitting an offer, learn about the sold properties in the area, competition for the home you are considering and know if the price is right.  Your offer contingencies should be written in such a way to protect your money in the event you are unsatisfied with inspection or your mortgage is not approved.

9.Do you know the six fiduciary, client level duties you would owe to me if I chose to hire you as my buyer's agent? Confidentiality; Accountability; Reasonable Skill and Care; Undivided Loyalty; Obedience to Lawful Instructions; Full Disclosure.

10.Can you provide me with references?  How do you keep track of customer satisfaction?

To receive my answers to these questions, write me at ruth@smartbostonmove.com.

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Importance of a Buyer Agent:

Save time!  Don't do all the searching alone.  You will have exposure to many more properties that are right for you instead of depending on the newspapers and websites to give you vague, outdated information.  Agents preview properties and often know the buildings or neighborhoods well enough to be able to advise. 

Save Money!  A buyer's agent will provide you with the data you need to prevent over paying for the home.  Hire a strong negotiator to represent you!

Keep your money safe!  A properly written offer protects your money during escrow, allows you an out if you change your mind.  There is too much money on the table to take unnecessary risks.

Too Many Details!  It is impossible for you to keep track of all the details involved in a home buying transaction.  Wouldn't it be wise to hire someone who does this for a living!

It's Free!  In general, seller pays the buyer broker's commission. 
 
Sign a Contract! Demanding a contract means you will be able to hold the agent liable if any of the six fiduciary duties are not met: Confidentiality; Accountability; Reasonable Skill and Care; Undivided Loyalty; Obedience to Lawful Instructions; Full Disclosure.

Smooth Transaction.  Do you want to move into a home kicking and screaming or smiling and excited?  Too many things can go wrong and having someone on your side makes all the difference. 

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Great Resources for New Buyers: