Financial Facts: Picking the right people in the home-buying process
If you are looking to buy a new home, vacation property or an investment property there are few things you need to know right up front. As a buyer there are certain professional services that need to be employed and you should know who you those people are.The first one you need to employ, unless you pay cash for the home, is the mortgage lender. This person in my opinion is the most important person in the home-buying process besides you, the buyer. I say this not only because I am a mortgage lender but because, if you can’t get the money to buy the home, all the others have no reason to even get involved.As borrower, you need to sit down with the lender if possible and go over you debts and income. A full credit report should be obtained so you know your credit scores and if there are any errors on the report. If there are errors you should formulate a plan to get the errors corrected. In addition, you should discuss the various mortgage programs available to you and how much a lender will allow you to borrow.In choosing the mortgage professional, I suggest that you find out the lender’s experience and the number of mortgage investors they can place your mortgage. Using a lender who has only one or maybe two investors does two things: One, it limits the number of mortgage programs available to you, and two, you may be missing out on a lower rate on the same mortgage program from another investor. Buying a property is a big investment, so do not limit where you can get the best program and rate.The next choice you have is the real estate agent. Like the mortgage lender, I suggest that you interview a couple of agents if you do not have an established relationship with one. Determine if the agent is full time and how many transactions they have under their belt. Now I am not saying that a brand-new agent is not a good idea, as we all are new to the business at some point, but if they are new find out if they have a seasoned mentor who can assist if there are questions and help is needed.The title company is your next choice as a buyer. You have the right to designate in your purchase offer to pick which title company you want to use. This is where your lender and real estate agent can assist you if you are unfamiliar with a title company. The next choice is the appraiser. It is very important in my opinion to use an appraiser who is local and familiar with the area. Out-of-town appraisers may have a hard time getting the information on comparable property values, and those are very important part of the appraisal. Once again, I suggest you ask for advice from the mortgage lender on how to make sure a qualified local real estate appraiser is used. Next is an insurance agent. This step is needed even if you are buying a condo and the condo association takes care of the fire and liability insurance. If the home needs insurance, call your current agent and get a quote. I would also contact another agent or two and do a little comparative shopping. So there you go, a few things that as a home buyer that you need to know. And knowing who you can choose may make the process of buying a home just a bit easier, especially if you plan ahead and do not wait until the last minute. Bob Kieber can be reached at (970) 262-1199 or at firstname.lastname@example.org. He is a local mortgage lender and principal of Resort Lending.
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