Find the Right Real Estate Agent
Don’t let this happen to you!
by Karen Bates, CPA
Finding the right professionals you can depend upon is critical to a successful home buying experience. To help you determine who these professionals are, here are six tips to consider.
# 1: Have high expectations from the professionals you choose.
Your real estate agent and mortgage professional are there to work for you. They should promptly return your telephone calls, thoroughly answer all of your questions, put all costs and expectations in writing and tailor everything they do to meet your unique needs. If this is not the case, find someone who will provide the service you deserve.
# 2: Tap into your military network.
Instead of browsing the yellow pages for a realtor or lender, it’s better to call a friend in the area you are moving to and have them ask around for a referral. If you don’t know anyone locally, look for someone who is affiliated with the military, either a prior member or a spouse.
#3: Choose professionals that are referral-based.
Referral-based professionals earn future business only by taking great care of you and your family throughout the process. When you are interviewing real estate agents and lenders, don’t forget to ask them where their client base stems from. If it’s from anything other than referrals and repeat business, find out why.
#4: Work on the loan before you shop.
Find out how much of a house you qualify for before you go shopping. This will keep you from wasting time looking at homes out of your price range.
#5: Trust your instincts.
If it sounds too good to be true, it probably is. Sadly, competition has taught mortgage lenders to quote a small number for the interest rates and minimize closing costs. This leads to a “bait and switch” of loan fees, where your actual fees are much higher than what was originally quoted. There can also be hidden prepayment penalties, balloon payments or even ‘negatively amortizing’ loans where the balance of your loan actually gets larger each month. Look for a lender that guarantees both the interest rate and closing costs in writing and patiently answers all of your questions.
#6: Be careful about shopping lenders based solely on the lowest rates and fees.
It costs lenders money to provide loans. No matter what the advertisements say, there is fine print involved. If someone promises to do your loan and send your family to Hawaii at no cost to you, there is a catch. Think about who you go to for your hair cuts or car repairs. Is it the cheapest place in town or the shop where you found someone you trust?
For more information, visit MilitaryHomePrograms.com and download a free copy of “Learning How to Protect Yourself and Your Family–Mortgage Schemes to Avoid and Tips for Success.”