"shopping for the best financing should start
long before you start shopping for a home."
When you're looking to buy a home, the first thing most people do is to start the process of house-hunting. However, experience proves this is one of the last steps you should be taking if you want to get the most home for the least amount of money. In fact, shopping for the best financing should start long before you start shopping for a home.
This report outlines 3 significant steps you should take to obtain the best financing rates for when you buy a home. Read on to find out where you can inquire, what questions you should ask, and how to manage the process to your personal advantage.
3 Point Plan
3 Critical Questions to Ask... When you're looking for a REALTOR® to assist you in finding a home, make sure you find out the answers to these important questions:
- Can you get me a quick, easy and FREE mortgage pre-approval?
- Can I get preferred access to special low downpayments, monthly payments and interest rates?
- Can I get advance notice of listings that computer-match my homebuying criteria?
1. Get Pre-approved for a Mortgage
Getting pre-approved for a mortgage will give you a couple of key benefits - emotional security in the house-hunting process, and insurance against rising interest rates in the market place. Pre-approval is easy, and can give you complete peace-of-mind when shopping for your home. Mortgage brokers can obtain written pre-approvals at no cost and no obligation. More than just a verbal approval from your lending institution, a written pre-approval is as good as money in the bank. It includes a completed credit application, and a certificate which guarantees a mortgage to a specified level when you find the home you're looking for. There's no last minute shopping around for money and rates. With a pre-approved mortgage, if rates go up, you still get the pre-approved rate, and if rates go down, you receive the lower rate.
2. Receive Preferred Access to Special Low Financing
REALTORS® who conduct many real estate transactions every year may be able to offer you certain negotiating advantages with lending institutions. These lenders are often anxious to do business with such REALTORS® and their clients, and may be willing to extend better than average rates.
This can make purchasing a home much easier and more affordable for many Buyers to qualify for a minimum downpayment, and low monthly payments. Therefore many more Buyers can own the home of their dreams much sooner then they ever thought possible.
3. House-hunting Service
Most REALTORS® offer a house-hunting service making it easier to find what you'd like. Through these programs you'll find out in advance which homes on the market match your homebuying criteria. To do this, you simply provide your REALTOR® with a brief description of the type of property you're seeking. For example - number of bedrooms, price range, neighbourhood, and so on. You'll receive various opportunities, including photos, of all the homes for sale matching your requirements. This will give you the competitive edge over other Buyers. You can drive by these properties and select which ones you'd like to view, and then it's simply a matter of advising your REALTOR® to set some appointments. Because you arrive before most other Buyers, you just might negotiate a better price on the one you love best.