Buying that House. First things First What is the first thing you need to do if you are house hunting? Get Pre-qualified or Pre-approved.

Buying that House

First things First

• What is the first thing you need to do if you are house hunting?

• Get Pre-qualified or Pre-approved

Pre-Qualified

• Pre-qualified means you have told a lender…• Your income level• Your debt• Your credit information• Then the lender ESTIMATES what you can

afford

Pre-Approved

• Pre-Approved puts you much closer to the actual loan.

• This means the lender has…• Done the legwork of pulling your credit report• Checking your debt-to-income ratio• Done an in-depth analysis of your financial

situation

Benefits of Pre-Approved

• Extremely better to be pre-approved• Added comfort of knowing what you can

afford• Seller may also accept your offer over another

if you are pre-approved• Why?

Need vs. Want

• Think about need vs. want in anything you do.– Especially with a purchase as big as a house

• Finding the perfect home may be impossible– Your dream home may not exist

Need

• Make sure to make a list of things you absolutely need– In your journal, write down things you think you

would need for a home

Want

• Make a list of things you want– In your journal, write down things you think you

would want in a home

Location is KEY

• Location, location, location• One of the most important things to look for

in a home is the location.• Maybe you want…

Location

• Does it matter that some of those previous examples were important to you?

• No• When it comes to sell the house, it may be the

selling point for others.• Write down as many things to consider when

thinking about location.

Good Location

• Things to consider…• Proximity to Town• Proximity to Schools, to Work, to Parks, to Shops etc…• Crime Rate• Zoning (what’s going to be built next to you in the future?)• Restrictive Covenants: Is there a certain way of doing things in

the neighborhood• Noise: Yampa vs. Barclay• Neighbors: Do research…check the neighborhood during the

day and at night– Why?

Realtor?

• When you search for a home, you have 3 choices.

• 1) Do it all by yourself– Search online, look in the papers, asking around

• 2) Call a Real Estate Agent• 3) Sign a contract with a Buyer’s Agent

By Yourself

• What are some of the good about going in alone?• Less Stress• Look at house when you feel like it• Don’t feel like people are waiting on you• What are some of the bad about going in alone?• May miss out on potentially great homes• Only get to look inside homes during open house

With a Real Estate Agent

• A Real Estate Agent can usually show you the homes more often than you could by yourself

• Things to remember• When you call a Real Estate Agent…• They are ALWAYS WORKING FOR THE SELLER– Even if they are not the listing agent

Real Estate Agent

• Agents are paid based on commission– Based on selling price of the house

• The higher the sales price, the more money the agent makes

• How could this cost you?• Finding a trustworthy agent is VERY important– Be careful though, because they are still

salesmen/women

Real Estate Agent

• Tips when dealing with an agent• Never ever reveal your highest price.• Why?• Because by contract, they MUST turn around

and tell the seller everything you said• Why should you never show emotion when

looking at a house?

Real Estate Agent

• Remember• The agent, by contract, is working for the best

possible deal for the seller, not you.• They can not disclose any information on the

seller that might tip the scales in your favor– For example, they can’t tell you why the seller is

moving or selling– Why?

Buyer’s Agent

• Many people have never heard of a buyer’s agent

• A buyer’s agent will do the following…• 1) Will work to negotiate the best price• 2) Keep your best interests and wallet in mind• 3) Ensure the property is inspected• 4) Make sure you have the representation you

need

Assignment

• Take out a piece of paper and construct a blueprint of your dream home.

• One view from the top– List rooms

• One view from the outside– Show detail