TheBrandywine.com: Your guide to the Brandywine Valley

How to be a Smart Buyer

1) Know your various mortgage options. A professional mortgage officer knows, in excess of 50 ways to finance your mortgage. Everyone’s personal situation is a little different. Did you know there is a way to get around PMI or Mortgage Insurance even if you do not have 20% of the purchase price as a down payment? Why pay more than you have to.

2) Get a Pre-approval before you find your home.

This benefits you more than you can imagine. By starting your loan process and obtaining loan pre-approval, not just pre-qualification, will place you be in a much better position to negotiate with a seller who knows you are financially prepared. Additionally, you can solve any obstacle, no matter how small, without delaying the closing as many buyers do by processing their loan after placing a contract on a home.

3) Be sure to get a market analysis prepared for the home that you choose.

In a fast sellers market you may find that the past history of many home sales do not match with the current marketed price. With Realtor’s computer capabilities, agents have complete information, and you should have all the facts as well. Knowing details regarding comparable sales and active competition will increase your knowledge when you are negotiating the price and terms of your home. (Some buyers do pay top dollar for their home, but it shouldn’t be without knowing where they stand.)

4) Know what you are getting into.

Have your agent provide you with complete cost estimates based on the specific home contracted for, not just an estimate done at loan application. Each home has specific costs associated with it, such as taxes and insurance. These can vary dramatically in different areas.

5) Know what you want and don’t want in a home and know what you can live without.

Not being selective – trying to see everything in and out of their price range, (or being too selective.) Seeing homes in the proper price range and areas gives you a better feel for the market, and educates you while you look. Your area has a variety of neighborhoods and property types. Make sure that you see what you need to be comfortable with your decision. These statements are not contradictory; you should see all that fits you without wasting time on homes that won’t.

6) Previewing schools, shopping, and other neighborhood amenities.

Take the time to know the convenience of your area, and whether the schools, shopping and amenities will help you attract the next buyer.

7) Requiring the proper inspections.

It is money well spent, and paying attention to the results will let you know the condition of the home that you plan to make yours. In addition, making sure that a home warranty is in place can save you unexpected expenses.

If you have any questions on the above information or would like to begin the pre-approval process please visit the mortgage link section on my website or call.