What You Need To Know As A Buyer

This is a short excerpt from all of the Real Estate “garble”. It’s the quick and dirty of what you need to know as a buyer so that you make the right decision, right off the bat.

1. Did you know you can run your credit multiple times with several lenders within 14 days? The reason your credit does not get hit so hard is due to the fact that you are shopping for the best Mortgage for your situation. Please be conservative with this though & do it within 11 days.
2. If you are a Buyer you can have a signed real estate agent committed to you! Real Estate Sales Agents used to represent mainly the sellers up to 1992, when the National Association of Realtors (NAR) acknowledged Buyers Agency. If a Seller has representation for selling THEIR property, shouldn’t you have the same? Have your agent, known as the Selling Agent commit to you by signing a Buyer Broker Agreement. It’s your choice who you sign with, then make them work FOR YOU!
3. RENT vs. OWN. You are going to see this on the news a LOT! Don’t ask your lender or Real Estate Agent about whether or not it’s better to buy or rent, ASK YOUR CPA.  In the real estate sales industry, we CANNOT tell you your Tax situation. Yes, you can write off Interest & Property Taxes, but only a CPA can tell you how much in your particular situation.  Also have them advise how you will take title (or in the future possible a trust).
4. Interest rates make a big deal! If you are approved for a $500,000 purchase price at 4.0% interest & rates rise to 5.0% you have Lost 10% of you purchasing power if you want to remain at the same payment quoted. So you can either find a $450,000 instead or buy now.
5. 5% vs. 10% vs. 20% down. Just remember you also will have fees & closing costs. EVEN WITH A 0% DOWN VA LOAN (which has a funding fee). Consult with your lender for your specific details.
6. “WOW, HONEY… What a great view!” As you are in a house looking from a hill top taking a deep breath and make sure to check your cell signal.
7. PROP 13 – Yes, it applies to all of California!  Proposition 13 is a law made in California in 1978 that reduced taxes on property. It was voted on directly by the people of California instead of being passed by California’s state government.

For More tips, feel free to email me at paulmonte@firstteam.com.