SO YOU WANT TO PURCHASE A HOME ?

It's no secret that these days mortgage underwriting standards have tightened considerably.

Whether you are a first time homebuyer or a repeat client, your time and money are important so here are a few preliminary steps you can take to make the purchase process a whole lot less painful!

These suggestions, if followed, will help you and your Realtor® move to forward quickly in making those home ownership dreams a reality.

1. Every person whose credit will be used for a home loan purchase should obtain a free credit report once each year from each of the three major credit reporting bureaus, and do so prior to applying for a home loan.

www.annualcreditreport.com is a site maintained by all three major credit bureaus. 

There are also many other credit monitoring, score, and report options available online. You can shop by comparisson here: http://www.consumercompare.org/credit_report_services/compare.php?kw=2cr+gcrfsx2+fico%20score&gclid=COqqmbGhjpUCFQRgswod5juufw

Obtaining this information will take you some time to do (Allow 1-2 hours) but it is time well spent.  Knowing what's on your existing credit report will help you spot anything that is not accurate and will help you paint a correct picture of debt and payments owed monthly and as a whole. Having this information handy will also help you when you fill out your loan application.  Obtaining your own credit report will not affect your score in any way.

If any information on these reports is inaccurate these websites can assist you in knowing how to proceed to dispute those items. 

2. We recommend that you obtain your FICO score.

The FICO score is a credit score that Mortgage Lenders use to help qualify you for your loan.  (NOTE: The FICO score differs from the individual scores available from each of the three credit bureaus  - make sure you are purchasing the right score!). Many companies will offer your FICO score free or at a reduced rate as part of a promotion when you purchase credit reports or credit monitoring products from them. Many offer a free trial.

Knowing this score during the pre-approval process can help you prevent unnecessary pulls on your credit.  Too many inquiries can hurt you! Controlling who has access to your report is something every consceintious consumer should practice!

3.  Work with a Mortgage Lender of your choice PRIOR to contacting your Realtor® to get your home loan Pre-Approved.

Here are some of our favorites:

Point Independent Mortgage - Marianne Edelman
medelman@pointmortgage.net

Curtis Mortage - Cary Crowther
cary@curtismortgage.net

Bank of America - Debra Betterton
debra.k.betterton@bankofamerica.com

Mortgage Lenders are NOT all created equal! They can make or break your loan. It is important that you get in with an honest, reputable loan officer right from the start ~ someone that will treat you as a person, not as a number or a commission check.

A pre-approval is different than a pre-qualification.  A pre-approval basically means that your loan has gone through an early underwriting of sorts.  For pre-approval you will be asked to furnish certain documentation for verification of income and debts in addition to the credit report that the lender will obtain.  The pre-approval process can often take a week or more.  A pre-qualification is usually based on a much quicker look at your financial picture...often overlooking some of the details that could hang up your final approval.  No one likes surprises. Pre-approval is the way to go!

4. Sign a Buyer's Representation Agreement with the Realtor® of your choice.

This is an agreement that allows the Realtor® to represent YOU as a buyer. It typically costs you nothing and can be limited to any amount of time or any geographical areas (Within the State of Texas) that you wish.
It also is an agreement of loyalty between you and your Realtor® - This will provide both Realtor® and buyer with a more rewarding real estate experience.

In Texas, a Realtor who does not represent the BUYER under a signed written agreement represents the SELLER and cannot work in the Buyer's best interest - though they must be fair to the Buyer in all their dealings.   

Your Realtor® will furnish you upon your first meeting with a disclosure from the Texas Real Estate Commission that outlines the various forms of Broker Representations available in Texas. 

5. Know what you can afford!!!

Work with your Realtor® and your Loan Officer to determine the purchase price and the payment that is right for you based on your current circumstances and those that might affect you in the future.  The importance of this step can not be over-emphasized.

6. GO SHOPPING !!! 

Your Realtor® can provide you with a list of homes that meet your particular criteria.  We can even set up your own custom search...an automated process that notifies you automatically when any new properties that meet your criteria show up in the Multiple Listing Service (MLS). You can also search the MLS yourself from the 'Property Search' page right here on our website or set up your own automatic search through our 'Dream Home Finder' Link. 

6. Do not apply for any new credit after receiving your Pre-Approval until AFTER closing on your new home. Notify your Realtor® or Loan Officer immediately of ANY changes in employment, income or circumstance.

Making a major change (Sometimes even a minor change) close to purchasing a home can affect EVERYTHING.  Many lenders verify employment and credit a second time - right up to the day you close on your home. Any change in your situation can affect the amount of home you're able to purchase .... sometimes they affect your power to purchase at all. Buyers are encouraged not to apply for new credit cards, automobiles, cell phones or other lines of credit, to the extent that it can be helped, until after your closing.  Providing your identifying / credit information when applying for homeowners insurance or utility service is the exception.

Click HERE to see testimonials from some of our valued clients.

WE HOPE THESE TIPS HAVE BEEN HELPFUL AND LOOK FORWARD TO HELPING YOU REALIZE YOUR DREAM OF OWNING A NEW HOME! 

Buy Wise…
  Sell Wise…
    Rent Wise…