Buying a Home in a Hostile Market

I feel it necessary to disclose that I am no longer a licensed real estate agent. I left my job as a buyers agent behind a few years ago. My children were younger and needed me, but my career took up so much of my time and energy, I needed choose my family over my work. I gave up my job and let my license expire.

A mortgage preapproval
The very first step in the process, is getting preapproved for a mortgage. The preapproval is a crucial step because, it outlines what price range you can shop in, and what terms the lender will give you. It also establishes you as a solid buyer in the eye's of the seller and sellers agent. Most agents will not show homes to buyers who do not have a preapproval letter in hand. Most established agents have a network of lenders and mortgage brokers they work with, and can give you referrals.

Location
Once you have determined your price range, you can begin thinking about the locations that you find most appealing. If you are looking at homes on-line, most buyers are these days, you should select a few homes and drive by them on weekends, or in your spare time. This will give you a feel for what the area is like, condition of other homes in the neighborhood etc. The house you like so much on-line, may look different up close and personal. Also, you can map out the nearest grocery stores, retail, coffee shops etc. You should consider what the commute time will be to and from work as well, this detail is commonly overlooked, but can make a dramatic impact on your decision.

Down Payment
Gone are the days of financing the entire purchase price of a home. You should plan to put down at least five - ten percent of the purchase price. Times have changed, and a larger down payment will make you a stronger buyer, and help the process of obtaining a mortgage go smoother. The more you put down, the less you owe, and the lower your monthly mortgage payment will be

Buyers Agent
You should look for an agent to represent your interests in the transaction. The agent that lists the home, is representing the seller, and is obligated to work on behalf of the seller. That said, there are agencies that specialize in working with buyers, most of the on-line firms. If you have doubts, ask the agent who they represent.
It will be disclosed in writing to you at your first meeting, but you can ask in an email or call. A buyers agent is paid by the seller in the transaction, so there should be no cost to you. If an agent asks you to pay their commission, find another agent.

Home Inspection
Hire a licensed professional to do a complete inspection of the property. The five most important elements of the inspection are, the items that could cost you substantial amounts of money to fix, if they are not working properly or are at the end of their life. Roof, Heating System, Electrical, Plumbing, Foundation. Depending on where you are buying, a Home Inspection will cost anywhere from $250 - $500.00. The Inspection can take anywhere from 2-6 hours, depending on the size of the home. Plan accordingly with work etc. Other Inspections you can choose are Radon and Termite Inspections (these may cost extra).

Choosing an Attorney
You should select an attorney who has specific knowledge in the Real Estate field. Ask your agent for referrals. You want to know that the attorney you select understands in's and out of all aspects of a real estate transaction. You wouldn't take your child to a veterinarian for a check-up right?

The market may have changed, but the basics of a real estate purchase have not. The advice I give here, is designed to give you some basic knowledge of how the process should work, and get you started on your way to a successful home purchase.