TAKING THE FIRST STEP

By MIKE LIGHTBOURN

Once you decide to take the plunge into home ownership, what’s the first thing you need to do?

Start searching the website or your local newspaper for a home?

Not yet!

Unless you have a private source of financing, the first step is to pre-qualify for a loan.

Without it, a buyer has absolutely no leverage.

This is a good time to see how much the bank’s willing to lend you.

As I mentioned recently, some of the banks are offering their best interest rates on loans in years. FINCO/RBC is still running its “We’ll Meet You Almost Anywhere” mortgage campaign, for example.

A seller won’t take a buyer seriously if they don’t know how much they will be able to borrow from the bank – that’s if the bank approves their application for a loan.

After pre-qualifying, your second step is to select a BREA agent to help you find the right home.

Your agent will also negotiate on your behalf and field the curve balls that frequently get lobbed at the buyer during the process.

WORKING WITH YOUR BREA AGENT

When you select a BREA agent to represent you, give them a copy of the bank pre-approval letter and any other supporting documentation relating to financing.

Based on your Wish List, your agent will conduct a comprehensive search of all listings, drawing from the inventories of his broker house, private sources and every real estate company on the island.

Brokers from the various companies regularly work together to match buyers and sellers at no extra cost to anyone. If you find a home that you’re interested in, try and look at it sooner rather than later.

Sure you can wait until the weekend. But someone may beat you to it.

Sometimes, a home will sit on the market for several months without a single offer before it suddenly attracts multi-offers. This usually happens when the home was overpriced and the pricing was finally adjusted at or below market value.

Once you find a home, your agent will be able to assure the seller that you’re serious and you’re not wasting anyone’s time because the bank has pre-approved you for a loan within or close to the asking range.

DON’T OFFEND THE SELLER

If you fall in love with a home, but you can’t pay the full price, make a realistic offer if you are able to. Otherwise, move on.

Some buyers think they can get away with making silly lowball offers.

Not a good idea. You may end up insulting the owner who may have otherwise been willing to negotiate.

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(Mike Lightbourn is president of Coldwell Banker Lightbourn Realty)