We can write all day long or until the cows come home about preparing to buy a house before actually looking at buying a house, but very few people really do this. Most people find the home that they love and then frantically scramble to figure out a way to buy it. Well, it's most people go that route, what is the first thing you should do when you find a house you love?
This usually happens when you're not really actively looking for a house but one might pop up on your social media thread or be emailed to you by a coworker or friend and all of a sudden, it looks kind of appealing. So, what's the first thing to do?
Be wary on calling the listing agent.
If you are not currently working with your own buyers agent don't call the listing agent of the property. Remember, this person's sole job is to sell that one particular property, which may or may not be beneficial or the right home for you. They will try to push you towards that home however, not every listing agent will be this pushy. If you feel this is not the right home for you, they may take you on as their buyer and then that listing agent becomes your buyers agent, searching for the right home for you. This is okay, however, it's better to interview your own buyers agent and find someone that you like working with, not just because they happen to be the listing agent of the property you were somewhat interested in. Your own buyers agent has your best interest at heart and they are the person you call if you find a home you like and want to see further. Simply let them know how aggressive you want to be in searching for a home. You don't want someone calling you every day with a list of potential homes if you're not that aggressive. If the right home comes along, a text or email every once in a while is more appropriate.
Related: How to Buy and Sell in Different States
Find a lender ASAP.
If you truly love the home and you're considering buying it, talk to a lender. This could be your own bank or credit union or a local mortgage broker or even an online resource. But remember, online resources such as Rocket Mortgage still put you in contact with an actual person, so if you don't like to you're working with, you are kind of stuck with one of those online mortgage application processes. My suggestion is to find someone local the deals with hundreds of different mortgage options. Banks and credit unions typically have higher interest rates and can only go with their own programs. A mortgage broker or mortgage officer has access to hundreds of banks and can really find the program and loan that works for you.
More: 5 Red Flags a Real Estate Deal is Too Good to Be True
What are you going to do with your existing home?
If you are a renter, this is fairly easy and straightforward, but if you already own a home, you'll technically need to sell your existing home before moving into the new one and this can create some stressful juggling. Let your lender know that you're planning on moving your equity from one home to another and how you can close simultaneously. Your buyers agent can list your existing home as well, which is the recommended route since there will be one agent handling both situations. The further out you go with home sales in buying, you can have a lot of parties involved, so minimalizing how many people are involved is really the key to an on-time closing.
Once you have these three points covered, you're well on your way to an on-time closing. Don't forget to have an inspection regardless of the age of home, even if it's a brand-new property. Your appraisal, financial contingencies, and everything else varies depending on the type of deal, but having the right lender and the right agent working together will help facilitate the transaction in a smooth manner.
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