We have over a decade of experience providing loans for successful rehabs, refinances, purchases, and new construction projects. We are local, and we know what it takes to win at Houston real estate.
To buy real estate is the largest single purchase most people will make in their lifetime. When you commit to buy real estate, you should be as educated about the process as possible. It pays to be cautious, yet proactive. A single mistake in the process to buy real estate can cost thousands, if not hundreds of thousands of dollars. We want to make sure that you are informed of some common mistakes so that you don’t make a bad investment. Here are some things to consider when buying real estate:
One of the best things you can do when you buy real estate is to select a good real estate agent. A real estate agent will not cost you any money upfront, as he or she is paid by the seller out of the proceeds of the sale. The services that a good real estate agent provides are priceless. It would be a mistake to try to purchase a home by yourself without representation. To try to save a 3% commission and use it to save 3% on the purchase price of a house is a foolish strategy some people play. If you have little or no experience in the real estate field, the results can be catastrophic. Purchasing a home involves a lot of complicated rules, contracts, disclosures, and other minutiae. And unfortunately, the average person just doesn’t have the time or experience to navigate.
Better yet, find a good buyer’s agent when looking to buy real estate. An exclusive buyer’s agent represents only buyers and never the seller. By selecting an exclusive buyer’s agent, he or she will make sure that your interests are protected. When purchasing a home, you can expect the process to have a hiccup somewhere down the line. To have a smooth purchasing experience from beginning to end is the exception rather than the norm. An exclusive buyer’s agent will help you get through these problems. They also dispense advice so that you can make a good decision when the process takes a bad turn.
When you have your agent selected, you should select a good mortgage company before you buy real estate. Select a mortgage company separately from your real estate agent. Some agencies have in-house mortgage companies and other related services. Be wary. The best financing terms to buy real estate can be found on your own without the help of your agent or his brokerage. Shop around for a mortgage company and pay special attention to the fees being charged, not just the interest rate. The best mortgage will have the most advantageous combination of rates and fees, coupled with good service throughout the life of the loan. Before you make an offer to buy real estate, have a pre-approval in-hand. Not only will you gain leverage for negotiating the terms of the purchase, but you will also shorten the lending process dramatically by handling many of the details up-front.