Purchasing Real Estate: 101

At some point and time everyone hopefully will make that decision in ones life to purchase the American Dream. A HOME! When you have decided to do so, the very first thing you should do is speak with a qualified Mortgage Professional, again if you do not know of any, ask a friend, relative or co-worker. If you do not have one of those, then go to your bank and see if someone there can help you. When decide to purchase a home, running out and looking at property is NOT the way to go, you make be looking below your means or worse yet, fall in love with the perfect property and then find out you can not afford it. So, as I like to say, "Shopping within your means" is the best way to go, and to find that out you need to see a Mortgage Broker, Banker or financial institute. Once you find out what you can afford monthly, then look at what you have to put down on a home. You need money for closing cost, insurance, appraisals, surveys, home inspections, pest inspections, and utilities, so just the home price is not the only costs to be considering. And then there is the "down payment" that you should have, 3% is FHA requirements. So this is the least amount. Preferably 20%, but in most cases this is not attainable. There are ways to find other programs to help you.

Now that you have figured out where you need to be money wise, price wise etc... now you must find a Realtor you can relate to. Riding around and calling every real estate company sign in front of the homes that appeal to you is a huge waste of time, gas and energy. You should try to find a Realtor, either ask a friend, relative or co-worker, and remember all of us Realtors have the same information on all listings in the area. Once you find a Realtor you feel comfortable with make an appointment to view the homes that fit your search criteria and price points. Remember also, when choosing a Realtor find one that is not afraid to negotiate a price for you, so if you say your price range is highest of $120,000, your Realtor should at least pull up listings in the $135,000 range, unless the listing has already been drastically reduced. The Realtor should really interview you, that is what I do, sometimes we even go look at a property or 2 and then I can get a better idea of what the buyer's needs are and take it from there. Once you decided to go look at property the rule of thumb is to keep it a short list, 4 to 9 listings at the most. Take notes on every property, unless you know for sure it is not the one for you. Remember you will be looking at many properties so taking notes on the good and also the bad things about each property while you are in the property is very important. The hardest part in purchasing real estate I have found to be, is picking the property. Once you have picked the property, you should have the Realtor contact the Mortgage Broker and have them prepare a Pre-Qualified or better yet a Pre-Approval letter, that states you are already in the process of obtaining financing. At this point all of us Realtors have our personal ways of writing, submitting and presenting offers. Make sure you are involved and informed of this entire process. It is very important and as my Dad, the KING OF REAL ESTATE, always tells me, "Time is of the essences".

Once everyone agrees to everything on the contract, then you have what is called a "bi-lateral"contract (between 2 people), the Realtor, Mortgage Broker and Title Company or Attorney then take everything over and process this file as needed. The Mortgage Broker will be working very closely with you and getting the remaining documentation to the underwriters for their approval. Once all is approved, this not only includes your financial status but also the home must approve too, then you are well on your way to purchasing a home. It basically is only a matter of time for the title work and mortgage note to be prepared before you sign on the dotted line and are granted the keys to your new home.

Hope this information was helpful, I know most of my clients are not experienced home buyers and definitely benefit from my knowledge. So interview your Realtor, because you will be very closely involved with them for at least 30 days or more. You can reach me directly at 863-381-0400,
I am in Sebring, FL, and my name is Dawn Dell.

Dell Realty
"Where we treat you like family"