Mary's Real Estate News

Home Buying Tips For the Internet Age
by Brandon Cornett

The Internet has made the house-hunting process quicker and easier by putting a wealth of information at your fingertips. Literally. But many home buyers don’t realize the many ways that web technology can help them. So let’s take a look at some of the ways you can use the Internet to simplify your home search process.

1. Hire a Modern, Web-Savvy Agent

As far as Internet technology goes, there are two types of real estate agents. The first type views the Internet as a “gadget” that’s not worth their time to learn. They use the Multiple Listing Service (MLS), and only that service. They are not web-savvy, and therefore have a limited view of the real estate world around them.

The second type is part of the new generation of web-savvy real estate professionals. This agent knows the value of the Internet, and is “wired” into all of the major home-search websites, among other things. This agent can help you find and research properties more quickly by using the power of Internet technology. He or she is pretty handy with digital cameras, mobile devices, and other useful tools as well.

2. Use the Big Home-Search Websites

Over the years, real estate search engines have exploded both in quantity and complexity. These days, you can visit one of these websites and gain instant access to local property listings, recent sales data in your area, and more. This is an excellent way to screen houses before you visit them, which can save a lot of time.

For example, if you only saw a black-and-white photo of a home in the newspaper, you wouldn’t know what the inside rooms looked like. You would have to visit the property to find out. These days, however, you can use virtual tours and photo galleries to preview nearly every corner of a house. If it doesn’t match your needs, you don’t waste your time with a visit. Now that’s using technology to your advantage!

3. Use Your Local Newspaper’s Website

Most city newspapers have an online version of their news as well. For example, here in Austin, Texas, I can visit the Austin-American Statesman website to get information about the local real estate market, homes for sale, new subdivisions being built and more. Sure, the Sunday paper has a lot of this information. But why wait until Sunday?

4. Read Local Real Estate Blogs

Many real estate agents and companies have begun to use blogs as a way of publishing information online. A blog is like a website, only the information is presented in chronological format like a daily journal. Many agents use their blogs to publish updates about the local market, new homes they have listed and more. An agent’s blog is almost always more up-to-date than the main website. So they can be a good source for timely real estate info in your area. You can find them by doing a Google search for your city name plus “real estate blogs.”

5. Use Your Email Network

Do you know a lot of people who live in the area where you want to buy? Friends, family and coworkers perhaps? If so, send them an email to let them know you’re looking for a home in the area. If they see homes for sale in that area, they can email you about them. Essentially, you are creating your own house-hunting “army” to help you stay on top of things.

This can be especially useful in a hot market where homes sell fast. For example, imagine the following scenario:

Jane knows that her friend Sally is looking for a nice one-story home in the Shady Lane area. On her way to work one morning, Jane passes a “for sale” sign in front of a nice one-story home in that area. She pulls over to the curb, snaps a picture with her camera phone, and sends it to Sally. In turn, Sally emails it to her real estate agent who meets her there at lunchtime to view the property. This is a prime example of how technology can help you stay ahead of the curve when shopping for a home.

Citation Note: The original version of this article was written by Brandon Cornett. Brandon is the publisher of the Home Buying Institute, which includes one of the largest libraries of credit advice for home buyers.

Where to Begin When Buying a Home
by Brandon Cornett

Beginning a home search can be a somewhat disconcerting task. Perhaps the biggest question many first time homebuyers have is where to begin the process. Some people begin by looking at real estate magazines or websites, while others call real estate agents right off the bat. The process varies.

So, what is the best way to begin your quest for a new home? In truth, any way you begin the process is a good way, because the most important thing is to get started. After all, you will learn a lot as you go. But there are some things to keep in mind:

Do the Proper Research

Buying real estate can be an overwhelming experience for the first-time buyer. But you can make the process much easier simply by understanding it. Start with the lingo. By learning the terminology associated with home buying and mortgage, you will make smarter decisions along the way.

Set Your Budget

The best way to begin looking for a home is to first sit down with a mortgage lender to determine how a high a mortgage you can afford and be approved for. Remember, there is a difference between the loan amount you can be approved for and the amount you can actually afford. So in the end, only you can determine your home buying budget — not a mortgage lender.

When dealing with a mortgage lender you will want to provide him or her with an understanding of what mortgage payment you are comfortable making so they can give you a sense of the size of the mortgage that equates to, based on your credit, income and other factors.

Taking this step first will help “frame” your home search so you are only looking at homes within your budget range. Many first time homebuyers fail to take this step and therefore waste time and energy looking at homes that are well above their budget.

You can find plenty of websites that offer mortgage calculators, and these tools are a good place to start when determining your budget. Just keep in mind that the one variable you can never predict in advance is the interest rate. Only by speaking to a lender can you get a full mortgage quote that includes the interest rate (based on your credit history).

Get Pre-Approved for a Mortgage

Another reason you may wish to start with speaking to a mortgage lender is so you can be prepared to show a pre-approval letter to the seller. This gives them the confidence that you can buy their home, which is especially important for homes where more than one buyer makes an offer (i.e. a seller’s market). Do not confuse pre-qualification with pre-approval. Pre-qual is an informal process in which the lender tells you how much of a mortgage you might qualify for. Pre-approval, on the other hand, is a more formal review of your finances and is likely to reflect the actual loan amount the lenders extends to you. In other words, the person selling the home will pay more attention to the pre-approval letter.

Though there is no wrong way to begin a search for a new home, meeting with a mortgage lender first may be the best way to begin your search and find your dream home. Just remember to always keep an open mind when visiting each property and envision the possibilities. You must also stay realistic about your finances and do your best not to over-extend yourself by purchasing a home beyond your means.

Citation Note: The original version of this article was written by Brandon Cornett. Brandon is the publisher of the Home Buying Institute, which includes one of the largest libraries of credit advice for home buyers.