FSBO For sale by owner advice for selling a home for sale by owner FSBO...without a real estate agent...and pocketing thousands in real estate agent commissions

 

Home Loan News:
Is it find the home and find the loan... or find the loan and find the home?
Real estate article by Noel Peebles, co-author of
For Sale By Owner Home Selling Secrets ebook. Explains pitfalls of home loans.

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Is It Find The Home
And Find The Loan...
Or Find The Loan
And Find The Home?


By Noel Peebles
Co-author Home Selling Secrets ebook

Most homebuyers go about the process of buying a home the wrong way! That is; they spend weeks, months and sometimes even years, searching real estate listings, driving neighborhoods and visiting open houses looking for the perfect home. Now I hear what you are saying. Surely, that is the logical thing to do? Isn't it? After all, the buyer gets to know what's available and which properties are for sale at a fair market price. Unfortunately, that is not usually the best way to go about things.

Now don't get me wrong... property searching does provide useful and essential research. The trouble is; doing that first, can mean doing things back to front. Why? Because, once the buyer has found the home of their dreams, they place an offer to purchase the property subject to obtaining a suitable home loan. That's where things can come unstuck...

It’s often only at this point, that they begin to shop for a home loan. All too frequently, the bank or lending institution declines the home loan application. The property falls outside the lending criteria and is deemed to cost more than the buyer can afford. The buyer therefore loses the chance to buy the dream home they searched so hard to find. The deal falls through simply because the buyer couldn't finance the purchase. The buyer is frustrated, the seller is frustrated and so is the inexperienced agent who chauffeured the buyer around for all those months.

Get the order right: Hunt the loan before the home!

The savvy buyer is the one who shops around for the home loan first. That way, he or she knows exactly how much they can (or can't) afford. The buyer can then confidently seek out only properties that are within their prequalified home loan price range.

The big advantage in prequalifying for a home loan is that it puts the buyer in a much stronger negotiating position. The fewer conditions of sale that are included in the contract the better.

The seller is likely to take a buyer with a secured a home loan commitment far more seriously, than they will a buyer who may need to have a home loan approved.

There are two methods of applying for a pre approved home loan. The standard way is to supply a home loan agent with your financial and credit history. The home loan agent will then "crunch the numbers" and "run the ratios" to calculate the level of borrowing that can be approved. A major flaw in this scenario is that the borrowers often forget to reveal all. They (conveniently) forget to tell about their 4 overdue credit card payments, their new car payment or they push their income figures beyond reality.

The preferred method is to first complete an application and provide income and employment records. The home loan agent would then run a credit report and actually submit the file to a wholesale lender for underwriting before receiving approval and commitment for a home loan.

The message is simple; get a home loan commitment first, then find your dream home. Getting the order right will save you money when negotiating the contract. And, not forgetting, it is a powerful negotiating tool when presenting an offer to purchase. As an African safari guide once told me, "you don't go tracking a lion, find him and then worry if you have any bullets in your gun!"

By the way - we weren't hunting lions to shoot… we just didn't want to be eaten alive!

© Noel Peebles, Market Leaders FSBO real estate books.

Noel Peebles is co-author of the best selling FSBO real estate book
"Home Selling Secrets Revealed."
For details http://www.forsalebyownerguide.com

Ex Real Estate Agent reveals the quick and easy
FSBO secrets to selling your own home...without an agent...
and avoid paying $5,971...$8,329...$12,963
or more in real estate commissions!

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FSBO For sale by owner advice for selling a home for sale by owner FSBO...without a real estate agent...and pocketing thousands in real estate agent commissions