Oh So Many Moving Parts in the Homebuying Process
We last left Sally looking in the refrigerator of a seller’s home while her friend Hadley was looking at the condition of some of its features with her agent. Hadley has wisely chosen her agent based on the talents and skills she brings to the process. She hopes this will produce a better result for her in buying a home. But we will see.
As they walk through the kitchen area, Hadley thinks of something about the kitchen in her apartment–it does not have a garbage disposal and she hates that! She checks to be sure this home has one. The agent smiles knowingly. “Lots of people focus on correcting the things they hate the most about where they are living now,” she noted. “I once lived in a home with only one bathroom and I would only look at houses with 3 bathrooms for a long time when I started to shop. That was a mistake.”
“But that reminds me: what is your lease termination situation? We need to be sure to tailor the purchase date for your new home to your best advantage so you are not paying rent and mortgage payments at the same time. IF that is at all possible,” she added. “Sometimes we have to give a little on the closing date in return for a better price.”
Hadley stopped trying to find the disposal switch and turned to face her agent. “I never thought of that!” she commented. “I guess
I am on a month-to-month now but I really haven’t read the lease lately.”
“We need to do that,” her agent noted. “Why don’t you send me a copy and we can decide what your rights are. Maybe we can call the landlord and see if he would be willing to let you end on the day you buy your home.” “Is that possible?” asked Hadley. “I have had success with that in the past for my clients,” her agent informed her.
“Wow!” Hadley was impressed. She thought a minute more and asked: “What other timing issues do I need to consider?”
“Well”, her agent replied, “the timing of the mortgage is key. You do not want to have to incur any lending charges until after you have inspected the home and come to a final agreement on what things have to be repaired, etc. Sometimes you have to terminate at that point so you do not want to have started the loan process yet. Then you have to make the closing date far enough in advance to give the lender time to obtain the appraisal and do all the underwriting, but not too far so that the rate expires.”
Sally perked up at this conversation, having spend the last few minutes reading the diplomas on the wall in the den. “Gee, my agent did not tell me these things when I bought. And we did have an issue with the rate. We had to pay extra money to extend the ‘lock period’ or something like that. And I was never sure we got a very good rate anyway. We used the lender at the real estate agent’s offices.”
• Buying a home is so much more than finding it. There are trip points at every step along the way.
• Seasoned agents know how to address the possible problems before they surface.
• Using an affiliated lender is not a guarantee of the best terms. Shopping the loan is the best way to get the best rate.
• An exclusive buyers agent will most likely think of your needs more often and with more expertise than an agent who has a realtionship with the seller.
To avoid these issues and others when buying a home, use the services of an experienced, trustworthy exclusive buyer’s agent. Sage Realty is one of the ONLY exclusive agencies in the Philadelphia metropolitan area. Even if you are buying in another market, ask us to refer you to the best EBA in that area. If you are a first-time home buyer, your fears will be eliminated. And if you have bought a home before, you will have a completely different experience. Contact Sage today.