Become the Knowledgeable Home-Buyer

Nothing is worse than feeling clueless or completely lost in regards to making one of the most important decisions of you and your families life. For many people, it can be too time consuming to research the in's and out's of the real estate market, mortgages, and also find the house of their dreams - many families struggle to find the time to relax and sit down at the end of the day, let alone pick up the full-time job of "the home-buyer turned real estate agent". For this reason, "88% of buyers purchased their home through a real estate agent", which is a number that is ever increasing. (NAR, realtor.org)

The most important message I could send to home-buyer's and seller's out there is that MOST of us real estate agents are here to solely serve you and represent you in order to get you the right home at the best possible price while protecting you and your families interests along the way. We are here for YOU. On the other hand, please do take heed when finding the right agent for you, as some can live up to the stereotype of being in it for the almighty dollar and will push you into a transaction you may not be comfortable with or 100% ready for. Never settle.

An agent who takes a personal level of responsibility to find you a home/sell your home will be reliable in giving you the information you need in order to be a knowledgeable buyer/seller. They will not hesitate to answer any and all of your questions; if they don't have an answer, they will be sure to find one for you or point you in the direction of a professional that will. As you become ready to buy, start off by figuring out an average of how much you can afford, which is dependent on your total income, credit rating, total debts, etc. Now that you have a rough estimate of your price range, you are ready to contact an agent. A successful agent has lenders whom they trust to fulfill their commitment and will readily give you a few recommended lenders that can help you start the process of finding the loan that makes the most sense for you and your family. Once again, do not settle. SHOP AROUND. Many buyers are eager to set off on the exciting part of the home-buying journey, which of course is looking at potential contenders for your new home! Pull back on the reigns though, a mortgage will be with you for quite some time and effects every aspect of your life and should be decided on in that respect. You have the right to compare and negotiate the terms of your loan, as well as the right to be informed about the total cost of your loan (including: fees, interest rates, and points). Don't be afraid to ask questions about any part of the loan terms that are confusing to you; you won't look stupid asking... you will look naive, however, if you agree to terms that you don't fully understand.

There are a plethora of states that have first-time homebuyer programs, or other financing programs that may apply to you. Check out http://www.ohiohome.org/homebuyer/first_time.aspx to see if you qualify for Ohio's first-time Homebuyer Program. Another resource worth taking the time to look at is: http://portal.hud.gov/hudportal/HUD?src=/states/ohio/homeownership/buyingprgms, you may qualify for assistance through other programs. It is important to know what is available to you.

After choosing  your lender, you will then apply for your mortgage and get pre-approved. Rejoice, because now you are officially ready to get out into the market, seriously, and look at houses that meet your criteria! To prepare yourself, come up with a list of features : bedrooms/bathrooms, fenced yard (or the possibility of fencing), garage space, community, school district, etc. that you can give to your agent so that you don't waste your time (or anyone else's) looking through homes that won't meet your qualifications for what makes your perfect home. Are you looking for a ranch style home? Single family residence? Condominium?A house with land for farming/raising livestock or keeping horses? Keep in mind, nothing is perfect. Open your mind to see the space for what it offers not what it is at that given moment. Many buyers find themselves looking for 6-8 months even though they were ready to buy after searching for a month, solely based on the fact that they turned down homes that met every one of there needs but it required  superficial changes, like new paint. The search becomes exhausting when you expect nothing but perfection. The main focus should be on whether that space fits your needs and if the community is exactly where you want to be located. If it meets your requirements, you are ready to make an offer, which your agent will help you with. Being pre-approved for a loan gives you leverage against a person who has made an offer without first getting approved by a lender, since a pre-approval shows your sincerity and intent of buying the home you have made an offer on. In order to make the most suitable offer, your agent should run a comparison on the homes nearby (while considering features that this home has versus others in the area) to give you the best price to ask for the home, while also including conditions that you may desire, such as keeping the appliances, etc. If/when you reach an agreement, you, as the buyer, will make a "good-faith" deposit to show your intent is to follow through with the purchase of the home. During the escrow period, where the home is off the market, you will wisely obtain a home inspection. If there happens to be  discrete or monumental issues with the home that were not disclosed, you have the choice to rescind your offer or negotiate with the seller to remedy the issues noted by the home inspector. The importance of having an agent on your side throughout this process is priceless.

Buyer's who choose to represent themselves are more likely to be taken advantage of by famished seller-agent's who are eagerly seeking out prey (non-represented, vulnerable buyers). A seller's agent has no fiduciary duty towards any other person in the transaction other than the seller they are representing, therefore you may find yourself in a sticky situation if you decide to make an offer on a home through the agent who is selling it; they're only looking out for the best interest of their client with the goal in mind being to sell the house for the most amount of money they can get, with the least amount of conditions to be met. Not to bad mouth my own profession because we are all here to  do our jobs which more specifically is to best represent our clients, whether they are buyer's or seller's. My advice to buyer's is to protect yourself and your potential investment, and the best way to achieve this is to find representation through a real estate agent.

Once you have closed on the home and gained possession, it's time to celebrate (and begin the exciting part: packing and moving in!) However, don't forget to keep saving;  start up an emergency fund for unexpected repairs that will pop-up unexpectedly throughout your home ownership. Perform regular maintenance around the home to avoid major repair costs.

With the decrease in FHA insurance premiums and new low-down payment programs, 2015 is the year to make the leap into home ownership!