Buyer's Guide

Notice he said to decide on their budget—not determine how much the mortgage company will give them. In many cases, a mortgage company will pre-approve them for more than they’re comfortable spending, which is why they need to determine the monthly payment they feel comfortable with before talking to a lender. This likely includes doing a full household budget and taking into consideration what changes other than a mortgage payment will occur once they move into your new property. If they’ve lived in an apartment or with roommates, they may overlook new expenses like garbage, water, or HOA fees that could easily blow their budget.

Can they shop for, look at, and ultimately make an offer on a property without a real estate agent? Technically yes, but why would they when it costs them nothing for an agent like him to take much of the stress off your shoulders? Not only will he help identify properties they might be interested in, arrange showings, and ultimately handle the offer process, but he also has a knowledge of the market that they don’t possess. Finding the perfect property can be a daunting task, this is where his expertise and wealth of knowledge come into play. Let him show them around some properties that meet their dream property criteria so they can find the one that's right for them.

Once they have selected the perfect property, work with their agent to craft a fair offer based on the value of comparable property on the market. Depending on what the property is listed at and whether the current environment is a buyer’s or seller’s market, their offer may be below, at, or even above the asking price. He will be able to help them negotiate if they receive a counteroffer and reach an agreement. At this point, the house will go into escrow.

Now is the time to go back to the mortgage lender who pre-approved or pre-qualified them and choose their mortgage. They will be presented with various options based on their unique financial situation, including fixed-rate, variable-rate, 15-year, 30-year, or special programs such as VA loans or FHA loans. Work with their mortgage lenders to select the option they feel the most comfortable with.

No one looks forward to all the paperwork involved in buying a property, but it’s a necessary part of the process. Fortunately, everything will be arranged by their lender and title company and, when they’re finished, they’ll know they are the legal owner of their new property.