Interviewing agents on the phone or sitting down with at least two different agents to discuss what you are looking for and the time frame you have for looking at homes is a good way to decide who you feel most comfortable working with.

Availability
Do they work on weekends? If you are coming from out of town, you don’t want to be sitting in a motel room waiting for an agent who doesn’t work when you need to look at homes. If they aren’t available, do they have a team member or broker who will be available in their absence?

Willingness to listen to your needs is most important. Just as in chosing any other professional, you want to be sure this is someone you trust and feel will listen to you and your wants and needs.

Ask for references of buyers they have worked with in the past and call them!

Signing a buyer’s brokerage agreement will assure your agent will work for YOU. Many folks think working with many different agents is better as it’s more agents working for you, but in fact the opposite is true. None of them will work hard for you if they are not sure they will indeed be the one you write the contract with. And none will be committed to you either. It’s a two-way street.

Many factors should play into your decision of where you want to live, such as:

• price range
• commutes to work
• any special needs with schools
• size of neighborhood you’d like
• proximity to shopping, services
• Any desired amenities of the neighborhood or house
• age / design of home you’d like

Making a list of what is your most important needs/wants and prioritizing this list is a great exercise for your family and will help your agent tremendously.

Your agent can then use this list to set criteria for searches in the multiple listing service and find homes that match. The ability to look at homes online this way will then help you narrow down your choices.

Take a drive through some of the neighborhoods your agent has sent you if you live locally and get a feel for the areas.

If you are moving from out of town, the internet is a great source of information and a good agent can also direct you to websites that will help you compare school scores, communities and recreactional and social aminities you may desire based on the list you have provided.

The more information you give your agent about your wants/needs, the more help they can be.

When you have your choices narrowed down, it’s time to go see some homes.

Taking a camera with you is a great way to remember different features of different homes. Start each set with the mailbox or house numbers as well as the exterior of the home so you don’t get confused later. Take pictures of both positive and negative aspects.

Make written notes and communicate with your agent on what you like or dislike about each home. This will help them understand further what you like and don’t like and will save both of you time.

Choosing the right agent can help you along the process much more smoothly. They should be ready to refer you to professionals such as additional lenders to compare rates and programs and any inspectors needed once you decide on the right home for you.

Armed with your pre-approval letter and your offer, you are on your way to owning your dream. Once you have a binding agreement, your next step is getting your home inspector, which we’ll cover in part 3 of our series next week!

First, stand outside your front door and study how it looks. Does the trim need painting? Do you see rotten wood? How about your door and sidelight hardware? Door mat worn and tired? Sidewalk broken or covered with weeds and overgrown landscape?

This is the first impression buyers will have of your home and can set the tone for their visit. Most of us enter our own homes through the garage and never look at the front entry. While they are standing on your doorstep waiting for you to come to the door or the agent to open the lockbox, they are getting their first impression of your home – make it a good one:

• Replace any rotten wood and repaint trim and door for a fresh look.
• Replace door hardware and sidelights, possibly adding a new kick plate.
• Invest in a nice welcome mat.
• Replace worn out insulation around the door and save on energy bills to boot.
• If there is room on the porch, add some seasonal plants in nice planters/pots on either side-make sure they are large enough to make a statement and be seen from a distance but not large enough to make the space cramped

Second, go through your closets, attic, basement, garage and storage areas and organize by the following categories:

• Thinks to keep
• Things to box up
• Things to give away/donate
• Things to throw away

It’s always easier if you have labeled boxes for each of these nearby when you start, as this will prevent your putting them back to “remove later”. Although this seems like a large chore, it will only simplify your move later. You’ll probably also find a bunch of things you’ve been looking for for years! The best reason to do this is that it gives buyers a feeling of spaciousness and storage for their things. Nothing worse than seeing a linen closet stuffed to the max to make you feel cramped for storage or a garage that has no room for cars!

Third, How about your yard and landscape? Is it attractive from the street? Are the plants overgrown and covering the windows / doors? Replacing or trimming back overgrown shrubs is a great way to update the outside appearance of your home. And there is no better time to plant and fertilize than fall! Make sure that the areas around the base of your home slant AWAY from your home’s foundation. Replanting is a good time to do this. Also be careful not to put the dirt too high where it is in contact with the wood or stucco on your home. This is an easy entrance for insects and termites. With our recent floods, this is a good time to take care to prevent water in your home’s foundation/basement. The single largest problem with water is getting it away from the house to begin with. Clean gutters and install French drains and gutter extensions as necessary.

Consider how you use your yard or how a potential buyer might. Fire pits are a great addition if you have room and a suitable location and buyers love them. Make sure it’s not under a tree or overhang of the house, as it will smoke and spark. Put sand, then gravel in the center of large boulders/stones (as well as outside the area to prevent catching leaves/lawn on fire), gather some weatherproof chairs around and bring on the cool fall evenings for instant charm. Keep it loaded for a fire and a bucket of sand nearby to put it out.

This should keep you busy this week. Check back next week for part two of Home Sweet SOLD!

When purchasing a home, these three professionals are very important to getting your deal closed, whether you are the buyer or the seller, but first let’s look at it from a buyer’s prospective.

Know Your Credit Rating

Before starting your search for a lender, I suggest you pull your own credit report from all three credit reporting agencies. There are several free sites on which to do this. Look at www.clarkhoward.com for recommendations for obtaining free credit reports, but be sure you stay on his site and not wander off by selecting advertising links. Clark is our consumer advocate here in Atlanta and a great source for saving money!

Lenders: As a buyer, this is probably your most important decision (after you chose your real estate professional, of course!) Get recommendations from your real estate agent (if you’ve already selected one) or family and friends. Make sure it’s someone who has a bricks and mortar location, not an online financing institution. Many closings end up not funding due to the inability of an online lender being able to fund. You don’t want to end up at the closing table only to find out it’s not going to happen. In this market, it’s imperative that your lender be a stable source.

I always recommend to my clients that they talk with at least three different lenders and speak with each concerning your income and credit history, what type of loan you are looking for (term/payment amount), how long you plan to be in this home and any special programs you may qualify for. Do not have them pull your credit until you make the decision of which lender you wish to go with, as this dings your credit report each time.

Make sure each quote includes:

1. Escrow account creation amount– if you don’t have your home selected yet, this can be estimated based on the loan amount you qualify for and the county/counties you may be looking in. This is the part of your payment that will pay your taxes and insurance (billed to the mortgage company vs. you) when they come due. Normally, three to four months is collected up front, depending on when you close and when those bills may be coming due. This is considered part of your “up front” closing costs.
2. Rate of interest and term of the loan.
3. Loan origination fee.
4. Attorney fees. This is what the title attorney who closes your loan will charge for his/her services, normally $400.-$450.
5. Title Insurance. Make sure you are getting quotes that are “apples to apples”. For instance, make sure they are ALL including Owner’s Title insurance when quoting the cost of title insurance. This is the coverage that protects your down payment. The lender will require you purchase a title policy to cover UP TO the amount of the loan, but anything over that (your portion) is not required, but it is certainly recommended. Many times when looking at a good faith estimate, the Owner’s Title policy won’t be listed. As this can be several hundred dollars, you want to be sure all your quotes are the same.
6. Any document preparation charges, underwriting fees, etc.

Once you have found who you are most comfortable with, ask them to match the best deal you have found among those you have interviewed. It is critical that you feel comfortable with your lender and confident of their ability to get the loan processed on time and at the costs quoted on the Good Faith Estimate. It strengthens your position greatly to have already completed this step BEFORE you start to find a home.

Pulling your credit report and finding and correcting any errors on it can save lots of time and aggravation later. It’s also extremely hard to settle on a home you can really afford if you’ve been looking above your price range by not completing this step FIRST.

Now armed with your pre-approval letter, you are ready to find your dream home.

Get started with the right AGENT, next in part 2 of Lenders, Agents, Inspectors, OH MY!!