The Top 5 Ways to Prepare to Purchase a Home

by JoAnn Young - Florida Realtor & Mortgage Broker, Melbourne, FL  -- There are several reasons buyers are afraid to make the jump from "LOOKER" to "HOME BUYER". A buyer needs every advantage they can to make an informed decision on whether now is the right time for them to buy a home.

1. Get Pre-Qualifed. The most important thing to do before you start to shop for a home is to meet with a local and trusted mortgage broker. A Mortgage Broker can pre-qualify you at no cost. They will look at your credit and your financials and let you know what programs you qualify for and/or what you need to do to get prepared to buy a home.

2. Hire a Buyer’s Agent. You can usually hire a buyer’s agent at no cost to you. They get paid a commission by the listing agent’s split commission advertised in the MLS. They can obtain the information for you on any house listed in the MLS and you will have someone in your corner assisting you through each step of the buying process.

3. Know what type of properties you should be viewing . Depending on the type of mortgage you are getting, they may require the property to be in move-in condition. FHA or VA has a low tolerance to deficiencies to a property. If a houses need work, you may not be able to purchase using this type of financing.

4. Making an offer. When you find that dream home, the first thing you should do before making an offer is to assess what the house is worth in today’s market. Never base an offer on the asking price! You do not know if the asking price is priced at market value, priced too high or priced too low to attract more buyers to “bid” on a property as if in an auction. Your Buyer’s agent can give you tools to help make this assessment.

5. Contingencies you need to include. Price is not the only variable a seller reviews in your offer. Contingencies are also a factor. Two contingencies you should include are obtaining financing and getting a home inspection. You can reduce the negative effects of each by including your pre-qualification or better yet, pre-approval letter and keeping your inspection to within 10 days. Closing dates are also important but can be negotiated.

Buying a home right now may not be right for every person. You will need to assess your financial situation and the condition of the Real Estate market where you live.  Banks are loaning money to qualified buyers. Prices are stabilizing in our market and buyers are more comfortable with the position with equity. If you are ready, willing and able to purchase then contact JoAnn Young for your experienced Buyer's Agent. (321) 243-4917.