|
Secret
#2: Be Financially Prepared – Ahead of Time!
Many
people go about the home finding process backwards. They go
through the entire process of searching, evaluating, and writing
an offer on their home, WITHOUT being financially prepared.
And
it usually costs them money. A lot of money!
Doing
a few things up front, BEFORE you go searching, will save you
a lot of money, time, and hassles. What are those things?
First, find a MOTIVATED lender.
No,
don't just go down to your local bank where you'll likely to
be slowly tortured by bureaucracy and paperwork. Your banker
may be a good friend for your checking, savings and perhaps
an auto loan. But most bankers are not motivated to work hard
to earn your real estate business (although some are changing
their ways).
That's
because one of the quotas bankers have to live by is : “How
many BAD loans did you originate? ”
They
don't get measured by their production…
They
don't get measured by their service…
They
only get measured by the MISTAKES THEY AVOID!
Now,
I know if your local banker sees this, he's going to cringe
a bit, and start reciting all the ad campaign jargon most banks
are spouting these days. But the truth is…
There
Is Absolutely NO Incentive For A Traditional
Banker
To Serve Your Best Interests…
What
you want to do is find a mortgage lender who is MOTIVATED to
take your loan. One who represents many different products,
and can offer you many options for making your loan most affordable.
Here's an important tip: Ask your REALTOR
® to refer one or two lenders to you. Why? Because your
agent has influence over lenders because they send lots of clients.
It's not just YOU alone talking to them.
If
they don't give you first class service, the REALTOR® who
sent you will refer (ALL) their clients to someone else. So
they're motivated to SERVE YOU. And the minute you have a problem
with your loan, you can turn to your REALTOR®…who has much
more influence and leverage over the lender than you alone.
After
all, your REALTOR® and lender both want to see the transaction
close. There's power in numbers and influence. Use it to your
advantage.
Now,
the second thing you want to do is GET PRE-QUALIFIED with a
lender. Better yet, try to get PRE-APPROVED.
Why?
Because
the first question any home seller will ask when an offer is
presented is “ Is your buyer approved for a mortgage? ”
And
rightfully so! The seller doesn't want the deal to fall through
because you couldn't get financing. When they accept your offer,
their home comes OFF the active market. If you fall through,
it costs them time and money.
Plus,
there's one more reason to get pre-qualified or approved…
You
Will Have Much More Power To Negotiate
Price
And Terms
When You're Financially Qualified!
When
you have money behind you, the seller knows your serious. And
a serious buyer ALWAYS has more influence to negotiate. So do
yourself a favor, GET PRE-QUALIFIED or PRE-APPROVED!
Now,
the third way to become financially prepared is to have deposit
funds available immediately. One way to do this is to write
a check for 3% of the highest price you've been qualified for
financing.
Make
the check out to the Brokers Trust Account, or the Title Agency
you will use. The broker or title company are trustworthy fiduciaries
by law, and will hold the check un-cashed until you make an
offer that's accepted.
Now
I know what you're thinking… “It'll be a cold day in Ecuador
before I write a check
before we've even located a home.” I understand.
But
you may want to consider this…
Jim
and Susan were buyers from outside their immediate area. Because
of their distance, they could only get together with their agent
with two days notice. And the market was pretty good.
Three
homes came on the market, and were sold before they could get
together to visit them. Twice, they lost other deals because
of bidding wars.
Finally,
out of frustration, they placed an un-cashed deposit with their
broker.
When
they finally found the right home, they decided to write an
offer…
And
because they placed an un-cashed check on deposit, their agent
could enter negotiations with verbal authority to make the offer.
And because the agent could demonstrate that he had earnest
funds, the buyers were able to sign a faxed copy of the offer,
and their deal was secured.
And
it's a good thing! The very next day, three more offers came
in on the home they just put into escrow!
|
