Now lets move on to the buyer’s side of the real estate transaction. Buyers are in demand right now. Though the market is not flooded with homes, we are still at a fairly healthy mix of buyers and sellers.
Buyers need to be prepared to buy. I know that sounds odd, but the first step a buyer should take once they have decided to enter the market, is to get a true pre-approval from a reputable lender. We all know how the correction in the market has played out over the years from the many factors involved in the housing bubble. One of the many factors was credit that was obtained too easily.
Lenders have many different rules in play now and, as a result, a true pre-approval of a loan is almost a requirement a seller will want to see before considering an offer that includes a financing contingency. As a buyer, your lender will require many different documents from you to prove what you are stating to them when applying for credit. Be prepared to provide that lender with several recent pay stubs, several years of tax returns and proof of any funds deposited into your accounts if they do not match the numbers provided on the pay stubs. Largely they are looking to see if the money you have in your account is from a gift, which could affect your loan. These are just some of the items you lender may require and your lender may have many different items they request of you.
Once you get your pre-approval, you will know your buying power. Just because you are approved for a certain amount, it does not mean you have to spend that amount. In fact, many would argue that is another one of the reasons we are in this housing correction. The amount you are approved for is a guideline on what your market range is.
Now onto one of the first steps in finding the right home; start with the right help.
I recommend you find a real estate agent who is a REALTOR®, such as myself, to work with. A real estate agent is a REALTOR® when he or she becomes a member of the NATIONAL ASSOCIATION OF REALTORS®, The Voice for Real Estate®, the world's largest professional association. The term "REALTOR®" is
a registered collective membership mark that identifies a real estate
professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and abides by its strict Code of Ethics.
Code of Ethics
The Code establishes time-honored and baseline principles that come from the collective experiences of REALTORS® since the Code of Ethics was first established in 1913. Those principles can be loosely defined as:
- Loyalty to clients;
- Fiduciary (legal) duty to clients;
- Cooperation with competitors;
- Truthfulness in statements and advertising; and non-interference in exclusive relationships that other REALTORS® have with their clients.
The above codes are just a sampling of the many ethical obligations a REALTOR® has to follow. If you have any questions, please give me a call at (414) 801-8992. I would be more than happy to consult with you. Also, watch for our Grand Opening in the Oak Creek Market Place Village later this fall.
Oh and by the way my name is Garett!