Insider Real Estate Secrets Revealed! (Educational Course for Home Buyers and Sellers) Lesson # 10
Darren Meade
May 19, 2007
Welcome to this week's edition of Insider Real Estate Secrets Revealed! (Educational Course for Home Buyers and Sellers)
We hope you have learned a tremendous amount from our articles and we look forward to providing more educational material to help you on your home buying or selling journey. In this edition of Insider Real Estate Secrets Revealed, we will learn the 10 critical mistakes many people make when buying a home...and how you can avoid them! We're also discussing the 3 negotiating secrets all top Home Sellers know. So, sit back, relax, and enjoy this edition.
CAUTION! - Don't apply for a Mortgage until you read this report!
10 Critical Mistakes Most People Make When Applying for a Mortgage
Mistake #1 - Becoming a 'Rate Shopper'
Lenders love to run ads on TV and radio bragging about their super-low rates. Unfortunately, these rates aren't all they're cracked up to be. The rates you see in these advertisements are usually based on the best-case scenario. They require that you pay additional up-front fees and that you possess a perfect credit history in most cases.
This is why we refuse to post rates on our website. It would be a disservice to you, the valued client. Hundreds of loan programs are available and your rate will depend upon which program you choose. Choosing the wrong program might get you a great interest rate, but cost you tens of thousands in the long-run for other various reasons.
This is why we prefer to meet with you, discuss your financial goals and then recommend a program that has not only a low rate, but that will also help you achieve your goals. Schedule a NO COST consultation with us today by calling or visiting our website.
Mistake #2 - Not obtaining a Mortgage Pre-Approval
In some areas, a seller may not even deal with you until they can verify that you can actually afford to purchase their home. To them, a pre-approved buyer is essential. But even in cases where pre-approval is not mandatory, it is still wise to consult with a reputable mortgage company and receive a pre-approval. Especially considering that the pre-approval process is fast and easy.not to mention at NO COST to you!
Once you are pre-approved, you can embark upon your home buying journey with confidence, knowing that once you find your dream home, obtaining the money to buy it will be the easy part!
Mistake #3 - Believing You Need Perfect Credit and 20% Down to get Approved
Nothing could be further from the truth. Even if you have bad credit, no credit or no down payment, you may still qualify for a loan. Programs like FHA and VA make it easy for anyone - even First-Time Homebuyers - to get the financing they need to afford their dream home.
Every month that you wait to apply for a loan, is a month where you put money into your landlord's pocket instead of investing it in your future. DON'T WAIT. It's never been easier or cheaper to qualify for a home loan than it is RIGHT NOW.
Schedule a NO COST Pre-Approval Session with us today by visiting my website. We can't wait to say 'Congratulations - You're Approved!'
Mistake #4 - Getting your loan from an Internet Lender
Large internet-based lenders claim that they have thousands of lenders under one roof fighting for your loan, and because of this, you'll get the best rates and fees. Now the question you need to ask is: 'If this lender is so cheap, how can they afford this million-dollar television ad campaign?' The truth is that you will likely pay similar costs whether you obtain a loan from the Internet or from an in-town lender.
And if you choose an in-town lender, you'll get a lot better service. Why? Simple - local companies are more concerned about their reputation and therefore will do a better job of serving you. Most of the people we deal with are referrals from previous clients who were so happy with our service; they couldn't help but tell their friends and family!
Mistake #5 - Working with the Lender your Realtor® Recommended
Many times, Realtors® will refer their clients to a particular lender. Sometimes, it's because they know that the lender is truly the best. But far too often, it's because the Realtor® has a special referral relationship set up with the Mortgage Company they are referring you to.
This is why you need to interview your mortgage lender. Don't just take your Realtor's word for it! We recommend that you read our special report: '7 Questions Lenders Hate!' to learn what questions you need to ask when interviewing a mortgage lender.
Mistake #6 - Working with a Lender Who Offers Few Loan Program Choices
Not all lenders are created equal. Some lenders, (even ones who 'seem small'), have a larger company who stands behind them with dozens, or even hundreds of loan programs. As a consumer, this is great news for you.
The more loan programs there are to choose from, the better your chance will be to find one that fits your specific needs. Be on the lookout for lenders who only have a few loan programs and try to 'size you up' to fit into one of their restricted loan program choices.
Mistake #7 - Not Understanding the Difference between Banks and Lenders
You need to understand the difference between banks and individual mortgage originators. Banks handle savings accounts, car loans, investment accounts, etc. Mortgages are just one of many services they provide.
We're different because we only deal in mortgage loans. We sleep, eat, and breathe mortgage loans and nothing else. Would you go to a general physician to have heart surgery performed? Of course not. So why go to a big bank, when what you need is a mortgage specialist?
Mistake # 8 - Believing that Lenders are your Enemy
Studies show that most American's would rather see their dentist than have an appointment with a mortgage loan officer. The likely reason is that they are afraid of rejection - afraid of the big bad loan officer who will stamp a big red NO on their application. This is far from reality. We don't make any money unless we can say YES. As a matter of fact, we love to say YES to people just like you.
Mistake #9 - Not Disclosing Everything to Your Lender
Everyone has had a few financial problems in their past. We understand. We've heard it all and seen it all. So, when you come into apply, just be honest and disclose any past financial issues. This will make it easier for the lender to gauge your situation and provide you with best loan for your needs. If you hold back information and the lender finds out later, it could greatly affect the speed and difficulty of obtaining your loan. Remember, honesty is the best policy!
Mistake #10 - Making Critical Mistakes Prior to Applying for Your Loan
Without the proper guidance, you are likely to make critical mistakes when it counts most - immediately before you apply for your loan. These mistakes may cost you thousands, or at worst, deny you the privilege of owning your own home. Here are some best practices. Within 6 months of applying for your loan:
Don't make any large purchases on credit (cars, expensive furniture, electronics)
Don't move large amounts of money around between your various accounts
Don't apply for credit cards or other loans
Make all of your credit card and other loan payments on time, every time
Don't switch jobs, as employment stability is a key factor in getting approved
BONUS! - Mistake #11 - Not Getting a Written Lowest Closing Cost Guarantee
All lenders are required by law to provide what is called a Good Faith Estimate of Closing Costs. Use this 'Good Faith Estimate' as a tool to find the lowest price. You should ask any lender you speak with for a guarantee that clearly states, in-writing, that they have the lowest bottom-line closing cost.
If they can't provide you such a guarantee, in writing, then you should find another lender. We guarantee our closing costs, in-writing. As a matter of fact, we are so confident that we have the lowest cost that we'll PAY YOU cold-hard cash if you can find a better deal elsewhere.
For more information, schedule a pre-approval or application appointment with us now. At our appointment, we will give you a form that guarantees the lowest costs, in writing.
Revealed! - 3 Negotiating Strategies of Top Sellers
In this report, you'll learn how to get the most money for your home when you go to sell. Learn how to negotiate properly and avoid the BIG mistakes sellers everywhere are making.
Negotiating Strategy #1 - Never Show Your Cards
Remember the old country song by Kenny Rogers that goes 'you've got to know when to hold 'em and know when to fold 'em'? It's true with Poker and it's certainly true in Real Estate negotiations. First, know what you are legally obligated to reveal to the Buyer and their Real Estate Agent. There are certain items you are required to divulge to potential buyers. Consult with your Real Estate Agent for more information.
Also, be realistic and somewhat flexible. FAR too many sellers will overprice their homes and their Agents won't do a thing to stop it. Why? The Agent knows that the home will eventually sell. So, it's to their advantage in some cases to get a higher selling price, which will mean a higher commission check in their pocket. So, don't be afraid to consult with your Agent and tell them that you want to sell your home in a reasonable amount of time, which might mean lowering the price a bit.
Once you agree upon a reasonable selling price, be ready for the Buyer's Agent to negotiate with you in an attempt to get the best price. NEVER tell the Buyer or the Buyer's Agent what your absolute 'bottom-line' price is. Let them guess, which will help you at the bargaining table.
Negotiating Strategy #2 - Not asking your Real Estate Agent this question
As your Real Estate Agent this question: 'Are you working for the same company/brokerage as the Buyer's Agent?' If your Agent works for the same company as the Buyer's Agent, they are required by law to share everything with each other regarding your transaction. If you tell your Agent something, he or she will be required to share it with the Buyer's Real Estate Agent. Can you even imagine how this impacts negotiations? The term for this is 'Dual Agency'. If you discover that your Agent is working for the same company the Buyer's Agent, you should keep to yourself as much as possible. For instance, if you are willing to accept $2,000 less for your home as a bottom-line price, don't tell your agent, because they will be required to share this with the Buyer's Real Estate Agent.
Negotiating Strategy #3 - Acting Too Quickly
Especially if you are selling in a fast-paced market, you might feel pressured to quickly accept an offer placed on your home by a particular buyer. There is no need to feel any pressure, or for that matter, to act quickly. It's in your best interest to slow down, review the offer, and make sure it's on your terms. Once an offer is made on your home, you are in the driver's seat (well, at least somewhat). You're not completely in control, but you have identified a person who wants what you are selling, which means you have a bit more flexibility. So, relax and slow down a bit. Never accept an offer 'today'. Always tell the buyer or buyer's agent that you want to talk it over with your Real Estate Agent first.
BONUS TIP #4 - Home Buying Strategy
If you are selling your home, statistics say that you will likely buy a home here or somewhere in this state. You will soon be on the other side of the deal when you become a home buyer. You're going to participate in the largest financial transaction of your life the next time you buy. Are you ready? Have you done your homework?
Are you aware of the supply and demand statistics of home inventory vs. sales made this year? Are you aware of what % of total homes listed for sale actually sold last month, and more importantly, how that statistic can positively affect how you structure your purchase offer? Have you assessed the best use of your cash and planned to maximize your leverage?
In short, have you prepared a Home Purchase Strategy? We participate in many real estate transactions every month. Over time, we've learned a thing or two. Our staff would like to help you develop your personal strategy and consequently help you save thousands of dollars in the process.
We call this our Home Buyer's Coaching Session®. We put our experience to work for you, preparing you to make an informed, money saving offer. We do this at no cost.
We hope you have learned a tremendous amount from our articles and we look forward to providing more educational material to help you on your home buying or selling journey. In this edition of Insider Real Estate Secrets Revealed, we will learn the 10 critical mistakes many people make when buying a home...and how you can avoid them! We're also discussing the 3 negotiating secrets all top Home Sellers know. So, sit back, relax, and enjoy this edition.
CAUTION! - Don't apply for a Mortgage until you read this report!
10 Critical Mistakes Most People Make When Applying for a Mortgage
Mistake #1 - Becoming a 'Rate Shopper'
Lenders love to run ads on TV and radio bragging about their super-low rates. Unfortunately, these rates aren't all they're cracked up to be. The rates you see in these advertisements are usually based on the best-case scenario. They require that you pay additional up-front fees and that you possess a perfect credit history in most cases.
This is why we refuse to post rates on our website. It would be a disservice to you, the valued client. Hundreds of loan programs are available and your rate will depend upon which program you choose. Choosing the wrong program might get you a great interest rate, but cost you tens of thousands in the long-run for other various reasons.
This is why we prefer to meet with you, discuss your financial goals and then recommend a program that has not only a low rate, but that will also help you achieve your goals. Schedule a NO COST consultation with us today by calling or visiting our website.
Mistake #2 - Not obtaining a Mortgage Pre-Approval
In some areas, a seller may not even deal with you until they can verify that you can actually afford to purchase their home. To them, a pre-approved buyer is essential. But even in cases where pre-approval is not mandatory, it is still wise to consult with a reputable mortgage company and receive a pre-approval. Especially considering that the pre-approval process is fast and easy.not to mention at NO COST to you!
Once you are pre-approved, you can embark upon your home buying journey with confidence, knowing that once you find your dream home, obtaining the money to buy it will be the easy part!
Mistake #3 - Believing You Need Perfect Credit and 20% Down to get Approved
Nothing could be further from the truth. Even if you have bad credit, no credit or no down payment, you may still qualify for a loan. Programs like FHA and VA make it easy for anyone - even First-Time Homebuyers - to get the financing they need to afford their dream home.
Every month that you wait to apply for a loan, is a month where you put money into your landlord's pocket instead of investing it in your future. DON'T WAIT. It's never been easier or cheaper to qualify for a home loan than it is RIGHT NOW.
Schedule a NO COST Pre-Approval Session with us today by visiting my website. We can't wait to say 'Congratulations - You're Approved!'
Mistake #4 - Getting your loan from an Internet Lender
Large internet-based lenders claim that they have thousands of lenders under one roof fighting for your loan, and because of this, you'll get the best rates and fees. Now the question you need to ask is: 'If this lender is so cheap, how can they afford this million-dollar television ad campaign?' The truth is that you will likely pay similar costs whether you obtain a loan from the Internet or from an in-town lender.
And if you choose an in-town lender, you'll get a lot better service. Why? Simple - local companies are more concerned about their reputation and therefore will do a better job of serving you. Most of the people we deal with are referrals from previous clients who were so happy with our service; they couldn't help but tell their friends and family!
Mistake #5 - Working with the Lender your Realtor® Recommended
Many times, Realtors® will refer their clients to a particular lender. Sometimes, it's because they know that the lender is truly the best. But far too often, it's because the Realtor® has a special referral relationship set up with the Mortgage Company they are referring you to.
This is why you need to interview your mortgage lender. Don't just take your Realtor's word for it! We recommend that you read our special report: '7 Questions Lenders Hate!' to learn what questions you need to ask when interviewing a mortgage lender.
Mistake #6 - Working with a Lender Who Offers Few Loan Program Choices
Not all lenders are created equal. Some lenders, (even ones who 'seem small'), have a larger company who stands behind them with dozens, or even hundreds of loan programs. As a consumer, this is great news for you.
The more loan programs there are to choose from, the better your chance will be to find one that fits your specific needs. Be on the lookout for lenders who only have a few loan programs and try to 'size you up' to fit into one of their restricted loan program choices.
Mistake #7 - Not Understanding the Difference between Banks and Lenders
You need to understand the difference between banks and individual mortgage originators. Banks handle savings accounts, car loans, investment accounts, etc. Mortgages are just one of many services they provide.
We're different because we only deal in mortgage loans. We sleep, eat, and breathe mortgage loans and nothing else. Would you go to a general physician to have heart surgery performed? Of course not. So why go to a big bank, when what you need is a mortgage specialist?
Mistake # 8 - Believing that Lenders are your Enemy
Studies show that most American's would rather see their dentist than have an appointment with a mortgage loan officer. The likely reason is that they are afraid of rejection - afraid of the big bad loan officer who will stamp a big red NO on their application. This is far from reality. We don't make any money unless we can say YES. As a matter of fact, we love to say YES to people just like you.
Mistake #9 - Not Disclosing Everything to Your Lender
Everyone has had a few financial problems in their past. We understand. We've heard it all and seen it all. So, when you come into apply, just be honest and disclose any past financial issues. This will make it easier for the lender to gauge your situation and provide you with best loan for your needs. If you hold back information and the lender finds out later, it could greatly affect the speed and difficulty of obtaining your loan. Remember, honesty is the best policy!
Mistake #10 - Making Critical Mistakes Prior to Applying for Your Loan
Without the proper guidance, you are likely to make critical mistakes when it counts most - immediately before you apply for your loan. These mistakes may cost you thousands, or at worst, deny you the privilege of owning your own home. Here are some best practices. Within 6 months of applying for your loan:
Don't make any large purchases on credit (cars, expensive furniture, electronics)
Don't move large amounts of money around between your various accounts
Don't apply for credit cards or other loans
Make all of your credit card and other loan payments on time, every time
Don't switch jobs, as employment stability is a key factor in getting approved
BONUS! - Mistake #11 - Not Getting a Written Lowest Closing Cost Guarantee
All lenders are required by law to provide what is called a Good Faith Estimate of Closing Costs. Use this 'Good Faith Estimate' as a tool to find the lowest price. You should ask any lender you speak with for a guarantee that clearly states, in-writing, that they have the lowest bottom-line closing cost.
If they can't provide you such a guarantee, in writing, then you should find another lender. We guarantee our closing costs, in-writing. As a matter of fact, we are so confident that we have the lowest cost that we'll PAY YOU cold-hard cash if you can find a better deal elsewhere.
For more information, schedule a pre-approval or application appointment with us now. At our appointment, we will give you a form that guarantees the lowest costs, in writing.
Revealed! - 3 Negotiating Strategies of Top Sellers
In this report, you'll learn how to get the most money for your home when you go to sell. Learn how to negotiate properly and avoid the BIG mistakes sellers everywhere are making.
Negotiating Strategy #1 - Never Show Your Cards
Remember the old country song by Kenny Rogers that goes 'you've got to know when to hold 'em and know when to fold 'em'? It's true with Poker and it's certainly true in Real Estate negotiations. First, know what you are legally obligated to reveal to the Buyer and their Real Estate Agent. There are certain items you are required to divulge to potential buyers. Consult with your Real Estate Agent for more information.
Also, be realistic and somewhat flexible. FAR too many sellers will overprice their homes and their Agents won't do a thing to stop it. Why? The Agent knows that the home will eventually sell. So, it's to their advantage in some cases to get a higher selling price, which will mean a higher commission check in their pocket. So, don't be afraid to consult with your Agent and tell them that you want to sell your home in a reasonable amount of time, which might mean lowering the price a bit.
Once you agree upon a reasonable selling price, be ready for the Buyer's Agent to negotiate with you in an attempt to get the best price. NEVER tell the Buyer or the Buyer's Agent what your absolute 'bottom-line' price is. Let them guess, which will help you at the bargaining table.
Negotiating Strategy #2 - Not asking your Real Estate Agent this question
As your Real Estate Agent this question: 'Are you working for the same company/brokerage as the Buyer's Agent?' If your Agent works for the same company as the Buyer's Agent, they are required by law to share everything with each other regarding your transaction. If you tell your Agent something, he or she will be required to share it with the Buyer's Real Estate Agent. Can you even imagine how this impacts negotiations? The term for this is 'Dual Agency'. If you discover that your Agent is working for the same company the Buyer's Agent, you should keep to yourself as much as possible. For instance, if you are willing to accept $2,000 less for your home as a bottom-line price, don't tell your agent, because they will be required to share this with the Buyer's Real Estate Agent.
Negotiating Strategy #3 - Acting Too Quickly
Especially if you are selling in a fast-paced market, you might feel pressured to quickly accept an offer placed on your home by a particular buyer. There is no need to feel any pressure, or for that matter, to act quickly. It's in your best interest to slow down, review the offer, and make sure it's on your terms. Once an offer is made on your home, you are in the driver's seat (well, at least somewhat). You're not completely in control, but you have identified a person who wants what you are selling, which means you have a bit more flexibility. So, relax and slow down a bit. Never accept an offer 'today'. Always tell the buyer or buyer's agent that you want to talk it over with your Real Estate Agent first.
BONUS TIP #4 - Home Buying Strategy
If you are selling your home, statistics say that you will likely buy a home here or somewhere in this state. You will soon be on the other side of the deal when you become a home buyer. You're going to participate in the largest financial transaction of your life the next time you buy. Are you ready? Have you done your homework?
Are you aware of the supply and demand statistics of home inventory vs. sales made this year? Are you aware of what % of total homes listed for sale actually sold last month, and more importantly, how that statistic can positively affect how you structure your purchase offer? Have you assessed the best use of your cash and planned to maximize your leverage?
In short, have you prepared a Home Purchase Strategy? We participate in many real estate transactions every month. Over time, we've learned a thing or two. Our staff would like to help you develop your personal strategy and consequently help you save thousands of dollars in the process.
We call this our Home Buyer's Coaching Session®. We put our experience to work for you, preparing you to make an informed, money saving offer. We do this at no cost.