The market for real estate is becoming more complex than ever. There is more information available to you, but there are also more pitfalls in the way of a good deal. Enter home buyers class and learn exactly how to become a homebuying expert without paying tens of thousands of dollars for a real estate license.
1. Who has the access that I need?
The first thing to learn about real estate is that it is just like any other industry: It is not about what you know here, it is about who you know. No matter how much you learn, you will still need the access of a connected real estate agent. Unless you have an incredible amount of time outside of your personal, familial, and professional responsibilities to build relationships with bankers and listing agents around the world, your time is better spent delegating this activity to a local agent whom you trust.
You will learn more from an established real estate agent than you ever could on your own. The best part about the arrangement is that agents work on commission, meaning that if you do not buy anything, then you do not pay anything.
2. Have I done by due diligence with my lenders?
You will quickly become a home buying expert by simply going through the rigors of finding a lender who will back you. If you want to take yourself through a masterclass, start the prequalification process today. Prequalification is similar to preapproval, but prequalification is not an official offer or something that you should take to a seller as a definitive financial statement. You are paying your financial dues when you take yourself through a prequalification, plus you get the free advice of a professional banker.
Prequalification makes you organize your finances and tells you exactly how lenders will want to see your paperwork before you ask for a loan officially. Not only will this help you with your current real estate purchase, but you will also be able to present your financial life to a professional at any time in their language.
3. Have I learned about all government sponsored entities (GSEs)?
Learning about the subsidy programs that are offered by government entities like Fannie Mae, Freddie Mac, Ginnie Mac, the Federal Housing Administration (FHA), the Navy Federal Credit Union, and the United States Department of Veterans Affairs (VA) will teach you about the ways in which interest rates, fees, closing costs, and down payments can be negotiated with a stable financial source.
The government is behind 97 percent of loans in the United States, so learning about the vital government programs that are meant to uphold the housing market will teach you about housing as an investment as well.
4. Have I walked through a house with a home inspector?
If you can walk through a house with a certified home inspector, you will find out about the many nooks and crannies that can cause huge problems for repairs and maintenance in a home. As a side note, you should always walk through with the home inspector in any home that you have put an official offer on. The home inspector will usually be quite open to answering your questions on the tour as well.
Take a look at a home inspector’s report even if you cannot find an inspector to do a walkthrough with you. Note how line items are mentioned and the detail that is used. You will need this kind of keen eye when you are vetting your own properties to buy.
5. Have I studied a local market to learn how appraisals work?
Your local market will play a huge part in how your house is valued. In order to understand how two properties can be listed at two completely different levels, you must understand the value of location, access, community amenities, and neighborhood culture. Real estate agents and sellers put a hard number on all of these things, and you need to learn how much they are worth to you before you put a serious offer on any piece of real estate.
6. Have I looked over a closing table discussion online and seen the paperwork?
The closing table discussion is perhaps the most important negotiation in the entire house buying process. All of the documents are signed and recorded with the government with a notary public in attendance, and everyone with their hand out gets paid. If you can view a closing table discussion online just to see the paperwork, then you should do so. You will see how many people actually have their hands in a real estate negotiation, and you will see how they get paid. You will also be able to see exactly how much cash you need to have on hand in order to get through this part of the process without any hiccups.
After you go through the rigors above, you should know much more about the home buying process than any course could teach. Go forth and purchase with the strength of knowledge.
2 Point Highlight
Unless you have an incredible amount of time outside of your personal, familial, and professional responsibilities to build relationships with bankers and listing agents around the world, your time is better spent delegating this activity to a local agent whom you trust.
Learning about the subsidy programs that are offered by government entities like Fannie Mae, Freddie Mac, Ginnie Mac, the Federal Housing Administration (FHA), the Navy Federal Credit Union, and the United States Department of Veterans Affairs (VA) will teach you about the ways in which interest rates, fees, closing costs, and down payments can be negotiated with a stable financial source.
