The buying process of New England Home Buyers is something that can be very intimidating. After being shown an ideal home, the potential home buyer often must decide whether to take the next step and commit themselves to a long-term and significant purchase. For the home buying process to be successful, home buyers will need the guidance and advice of a qualified and experienced real estate agent.
One of the best ways to ensure the success of the home buying process is by enlisting the services of an exclusive agent who has extensive experience working with both first-time home buyers and seasoned sellers. A professional real estate agent will offer the home buyer access to multiple real estate leads, a listing agency that is trusted and respected within the industry, and will assist in developing a comprehensive buyer package that will include all the necessary documentation and paperwork. If the buyer decides to work directly with the seller, the exclusive agent will help with every aspect of the negotiation process. Once the deal is sealed, the exclusive agent will continue to serve as the buyer’s liaison with the seller until a purchase contract has been signed. The exclusive agent is well-known within the home buying community and is widely considered to be a very wise choice when looking to buy a home.
Many prospective home buyers make the mistake of comparing the total price of the home along with the interest rate with other financing options available. This is a common mistake because there are many differences between the rates offered by lenders. Many first time buyers find themselves with monthly payments that exceed their income. Interest rates on new mortgage loans are variable and can change at any time. With the right mortgage and lending program, home buyers can be sure of paying the lowest interest rate possible.
Another option that some buyers overlook when purchasing a home is the possibility of becoming involved with co-ops. Co-ops offer buyers a unique opportunity to secure financing in a private transaction with little to no risk to themselves. The biggest benefit to a co-op is that the lender offers a loyalty bonus. This means that if you remain a member for several years, you are rewarded with an additional 20 percent interest rate discount on your mortgage. The mortgage rates do not decline during this period.
In addition to getting a loyalty discount on the interest rate, some buyers are unaware that a mortgage loan pre-approved by an independent mortgage broker could save them up to two percent in down payment assistance. This fee is referred to as “payment assistance fee”. A mortgage broker has several different payment assistance programs available, so a buyer does not have to go through the same mortgage lender for each financial transaction. It is also common for a buyer to be offered prepayment or forbearance privileges. These are terms where the buyer has the option to pay back a mortgage loan early by making a one time payment.
One of the biggest mistakes made when buying a first home is falling prey to real estate scams. Many unscrupulous individuals will pose as lenders or third party financial institutions and contact potential buyers looking for a home mortgage loan. When the owners of these scam companies approach the potential clients, they usually ask for money upfront. They convince the clients to sign the documents provided to them; but in reality they never receive any money from the client. When the owners of these companies fall out of business, they often contact the clients offering them mortgage loan offers, which are much higher than those offered by legitimate lending institutions.
Home buyers can avoid falling victim to these scams by asking any of their real estate agents if they know anyone who has used the services of a buyer agent recently. Real estate agents can also be useful resources when it comes time to negotiating the closing costs of the home purchase. Most agents know someone who has successfully completed a home purchase using their services. By asking the agent who helped the buyer closes his transaction, the new buyer may be able to negotiate a lower closing cost.
One good way to avoid getting ripped off is to only work with licensed real estate brokers. Before hiring any particular broker, it is important to check his or her licensing history and credentials to make sure that the person has sufficient experience in the field. A broker who works with a large number of clients and has built a reputation for providing excellent service should be chosen over an agent who has only handled a couple of transactions in the past. Additionally, a mortgage broker who has a good track record and maintains friendly relationships with other local lenders may be preferable over an agent who doesn’t maintain good relations with others in the market.