Florida Home Buyers and Investors Blog

It appears that pricing is starting to reach the point in which buyers realize they can afford to purchase a home for what they are paying in rent.  We are getting calls every day with buyers seeking affordable property and they are finding them.

Having new buyers enter the market is great, but there is a catch.  Lending requirements are stricter than before and these new buyers are unaware of the pitfalls and new lender underwriting practices.  Some of these new restrictions are self imposed and other due to pressure from the Federal Government.

Making an offer on a property at a great price is wonderful only if you are prepared well in advance.  We see too many tenants thinking they can just walk in, make an offer, then go out and get a loan.  Unfortunately it does not work that way any longer.

You need to prepare, and have your Team in place.  That Team consists of your Mortgage Broker and Realtor as well as additional services which may be needed later on in the transaction.

Work with your mortgage broker to guide you through the new lending requirements, get all your paperwork in, and receive a Pre-Approval or Commitment Letter.  This is the most important document you need when negotiating a transaction with a seller.

Sellers want to ensure they potential buyer is qualified and prepared to close.  The stronger the buyer, the better deal you will get.

As always, CASH is KING.  Those with CASH and can close quickly, can in most cases get the best deals.  The next best thing is a Commitment Letter from a lender along with a sizable deposit of 5%-10%.

Once you have your loan approved, it's time to start working with your Realtor to find the bargain.  It is recommended that you have loyalty to your Realtor as they are you best asset to find discounted property.  Calling multiple agents will work against you.  Realtors are professionals just like you.  Do Not Waste Their Time.  Also, working with a Realtor as your Buyers Agent is preferred over a Relator that is working both sides of the transaction.  Your Buyers Agent will work with you to structure the transaction to your benefit.  I recommend signing a "Buyers Broker" Agreement.  This ensures your agent is working completely in your best interests.  The typical Commission requested will be 3%-5% and reduced by any compensation paid by the seller.

Now go out and start getting your team in order!  The deals are out there just waiting for you to make the offer.  Don't you want to be in the drivers seat during the next Real Estate Boom!