Homebuyer Tips
Your Home Purchase The first rule of homebuying is “know what you can afford”. Fortunately home mortgage rates are at a historic low and your purchasing power may allow you to purchase that home of your dreams. So where do your start? First you need to check your credit report to be sure that there are no entries that will automatically cause your mortgage application to be rejected. You can order your credit report for 9.00 from one of the major credit reporting agencies. Identity theft is the fastest growing financial crime in America. Many people are being surprised to find that there are items on their credit report of which they have absolutely no knowledge. For more information on identity theft and how to order your credit report and dispute any false entries visit
The second step is to check with several lenders and get them to roughly calculate what amount they will be willing to allow as a pre-qualification amount. A pre-qualification is an initial discussion between yourself and a lender. It involves your credit score, your income, the amount of cash you have on hand for a down payment, cash reserves, and your outstanding debts. Based on these criteria the lender will advise the amount of money they are willing to lend. Once you have determined the price range you can afford it is time to start checking out the housing market in your chosen area. This should include a preliminary search on the web, newspaper advertisements, real estate magazines, and open houses. Like new cars many people have predetermined that they only want a new home and completely overlook the best value available to a homebuyer. That best value is a home that is for sale by owner. The reason that a home for sale by owner is a best value is that the owner has probably already tried the real estate agent route. The agent may have given the seller and unrealistic value in order to get the listing or existing home values in that area may even be on the decline. Whatever the reason you now have a willing seller that is ready to deal on a personal basis. You may have been told that you need a real estate agent to purchase a home. Real estate agents are no different from car salesmen. They are trained to obtain the sale at the highest price possible. They represent the seller and have their interests in mind, not yours. If you decide to use an agent then you should select a buyer’s agent. A buyer’s agent is one that will represent you in the negotiations and not the seller. The other option, and the one I recommend, is to search the area for homes for sale by owner. It is important that you have completed the lender pre-qualification so that you can negotiate form a position of strength. Nothing is more embarrassing than to make an offer that you cannot execute. A search of the county records will show you what the owner paid for the property and the selling price of similar properties in that neighborhood. Many counties now allow you to search this information online. Now that you are prepared to make an offer you need to retain a real estate attorney who is familiar with the laws in your state and will be sure that your rights are protected. He will prepare the documentation required to present your offer to the seller and officiate at the closing of the purchase. Regardless of your area the best way to retain an attorney is through membership in Pre-Paid Legal Services. As a New York Stock Exchange Company, Pre-Paid is rapidly becoming a household name as a revolutionary way to assure you and your entire family of access to top quality legal representation. For more information visit
I hope that this homebuying article will assist you in your purchase of that dream home you have been saving for every week.
For more articles to assist you in your home for sale by owner endeavor visit our Homes for Sale By Owner Library
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