Locking in rates assures your lowest interest

If you do decide you want to lock in at a certain interest rate, you will need to complete a loan application and send it to your lender as soon as possible. This must be done so that your commitment doesn't run out before your loan is approved. Follow up and be se sure that lender is receiving all of necessary documentation. Get a property appraisal, which usually costs about $300, through your loan agent as soon as possible.

Don't obsess and miss a good real estate deal

Although rising interest rates can create more problems for home buyers, waiting and hoping for low rates is not necessarily a smart move. You may end up paying a higher price. Also, refinancing is always an option in event that interest rates come down.

(c) Copyright 2005 Madan Ahluwalia. All rights reserved.

3. Play Game of Nines

Before house hunting, make a list of things you want in new place. Then make a list of things you don't want. You can use this list as a guide to rate each property that you see. The one with biggest score wins! This helps avoid confusion and keeps things in perspective when you're comparing dozens of homes. When house hunting, keep in mind difference between "STYLE AND SUBSTANCE". The SUBSTANCE is set of things that cannot be changed such as location, view, size of lot, noise in area, school district, and floor plan. The STYLE represents easily changed surface finishes like carpet, wallpaper, color, and window coverings. Buy house with good SUBSTANCE, because STYLE can always be changed to match your tastes. I always recommend that you imagine each house as if it were vacant.

Consider each house on its underlying merits, not seller's decorating skills.

4. Don't Be Pushed Into Any House

Your agent should show you everything available that meets your requirements. Don't make a decision on a house until you feel that you've seen enough to pick best one.

Don't forget to check into SCHOOL DISTRICTS of area you're considering. Information is available on every school, such as class sizes, % of students that go on to college, SAT scores, etc. You can get this information from this web site.

5. Stop Calling Ads!

Please note - ads are sometimes created to make phone ring! Many of homes have some drawback that's not mentioned in ad, such as traffic noise, power lines, or litigation in community. What's not mentioned in ad is usually more important than what is.

For this reason, I want you to be very careful when reading ads. Remember that person writing ad is representing seller and not you! The most important thing you can do is have someone on your side looking out for your best interests. Your own agent will critique property with an eye towards how well it meets your needs and will point out any drawbacks you should know about. So whether you decide to work with me or not, pick an agent you feel comfortable with and enlist services of that agent as a buyer's broker. Then you become a client with all rights, benefits, and privileges created by this agency relationship, and you're no longer just a shopper. Did you know that many homes are sold WITHOUT A SIGN ever going up or an AD EVER BEING PUT IN THE PAPER? These "great deals" go to those people who are committed to working with one agent. When an agent hears of a great buy, who do you think he's going to call? His client, who he has a legal obligation to work hard for you, or someone who just called on phone and said "keep your eyes open"? So to get best buy on a property, I always recommend that you hire your own agent and stick with him or her.

(c) Copyright 2005 Madan Ahluwalia. All rights reserved.