Using Technology to Invest in Your Future!

1. Keep Your Credit Clean

Take advantage of the annual Free credit report at www.annualcreditreport.com. This way you can correct any mistakes that have been made or deal with any issues that are negatively affecting your credit. Contact creditors who have not updated your records in terms of canceled credit cards, paid off balances, or settled disputes. You should be paying off your outstanding high interest credit as soon as possible to make it easier to qualify for a loan.

2. Get Preapproved

You need to talk with a lender and get preapproved for a loan before you start looking. This will make it easier on you and me, your REALTORŪ, when looking for houses. So when you find that perfect home, you will know what you can afford to pay each month for your loan, taxes, insurance, HOA fees etc... Sellers will also take your offers more seriously because they know that financing will not be an issue. This is extremely helpful if there are multiple offers on the same property. Once you have submitted your application for a loan, your lender will provide you a Good Faith Estimate of closing costs. They should be happy to explain them to you.

3. Set Your Priorities

Make a list of the all the important things you want in your home, then prioritize them. Give a copy of this list to me, your REALTORŪ. If you do not like a certain home type, (condo, townhome, single-family, twin home, etc..) let me know that as well. This will save us both invaluable time and effort when searching the local inventory.

4. Check Out The Neighborhoods

You will want to spend some time familiarizing yourself with the different neighborhoods. Check out the crime rates, taxes, schools, parks & recreation, shopping, and other features. When you buy your home, it is not just the home you are buying, but a whole neighborhood package. If the area you like is a condo or planned unit development (PUD), be sure to thoroughly review the CC&R's of the home owner's association.

5. Consider Your Future Needs

Everyone has different needs, and it is important that as you are looking at homes that you consider what your future requirements will be. Maybe you are just starting a family that will be needing room to grow or retiring and not needing all the extra space. Ask yourself these questions as you preview each home. Does the home have enough bedrooms & bathrooms? Is the yard the right size? Does the garage have enough room? Will my furniture fit in the rooms? Is there room to add on if needed?

6. Spell Out The Details

It is important that when you make an offer, that you spell out on the purchase agreement, everything you want from the seller and everything you will do too. This can be everything from inspection reports, to requesting repairs, to items you want included with the sale (appliances, plants, or any other personal property of the seller). It should also include the amount of earnest money you are willing to put up front and any concessions you would like the seller to make. The important thing to remember is that it all must be in writing!

7. Get The Best Deal

This is part of the reason you hire a REALTORŪ. A good REALTORŪ will be able to negotiate on your part to get you the best deal. This is especially true during a buyer's market, such as now, when the sellers are motivated. Many times the first offer you make will not be accepted, but will be countered by the seller. I require that if my clients want to offer less than full price, that they provide a written explanation of why. This helps many times to strengthen the offer, by showing the buyers concerns up front. Remember that any offer you sign is a legally binding contract.

8. Keep Your Eyes Open

When previewing a home, you should pay close attention to everything. If something looks out of place, it is likely hiding something, like a hole in the wall, stained carpet, or many other issues that could affect the value of the home. Be sure to check the lights and appliances that will be included to make sure they all work properly. Ask questions of when the roof , water heater, and furnace were last replaced. If there is a basement, make sure you check it out as well. Find out also if there is a well or septic tank, as they both have their own issues.

9. Get A Home Inspection

Once you submit an offer, have a home inspection done. They are well worth the couple hundred dollars now, compared to possibly thousands later on. Some items like a pool and A/C, are usually separate and you will definitely want to have them inspected by a specialist. You should attend the inspection with the home inspector and ask all the questions you want to make sure you are comfortable with the purchase and understand what may need to be done. When you receive the inspection, review it carefully and call the inspector with anything you don not understand. Click here for a list of recommended inspectors in San Luis Obispo County.

10. Closing Costs And Considerations

Your title company can provide you a copy of the closing documents before closing the deal. Obtain these ahead of time so you can review over them and ask questions on anything you don't understand. Be sure that these costs have been figured into your budget or loan amount if allowed. Closing costs usually include your first loan payment, prorated property taxes, title insurance fees, lender fees, etc...