The 3 Financing Tips This Realtor Wants You to Consider Before Starting Your Home Search

Sharad Gupta is the owner of Gupta Realty Group and is a member of the California.com Recommended Business Program, which highlights only the best businesses in the Golden State. To be featured, each business must be highly regarded, have a unique California story, and make a positive impact in their community. 

The first thing most people do when they decide to buy a home is begin the house-hunting process. While this might sound like a logical place to start, experience proves that looking at homes is one of the last steps you should take if you want to get the largest property for the least amount of money. 

In fact, shopping for the best real estate financing should start long before you start searching for a home. If you’re looking to become a homeowner, these are the questions to ask, where to get the answers, and how to best manage the home buying process.

3 Critical Questions to Ask Your Realtor Before Looking at Homes

When you're looking for an agent to help you find a home, make sure you get the answers to these important questions:

1. Can you get me a quick, easy, and free mortgage pre-approval?
2. Can I get preferred access to special low down payments, monthly payments, and interest rates?
3. Can I get special advance notice of listings that computer-match my home buying criteria?

The Financing Tips and Cost-Saving Benefits You Need to Know About 

1. Get Pre-approved for a Mortgage

Getting pre-approved for a mortgage—not just pre-qualified for a mortgage—will give you a number of important benefits during your home search. These perks include emotional security in the house-hunting process as well as insurance against rising interest rates in the marketplace. 

Pre-approval is easy, and can give you peace-of-mind when you begin searching for your dream home. Mortgage brokers can obtain written pre-approvals for you at no cost and no obligation. More than just a verbal approval from your lending institution, a written pre-approval is as good as money in the bank. It includes a completed credit application and a certificate which guarantees a mortgage to the specified level when you find the home you're looking for. 

Being pre-approved for your home financing means no last-minute rush to find enough money and good rates. With a pre-approved mortgage, you’ll still get the agreed upon rate if they go up, but you’ll receive the lower rate if they go down.

2. Receive Preferred Access to Special Low Financing

Agents that conduct hundreds of real estate transactions every year may be able to offer you certain negotiating advantages with lending institutions. These lenders are often anxious to do business with such agents and their clients, and may be willing to extend better than average rates.

This can make purchasing a home much easier and more affordable; many buyers can qualify for a minimum down payment and low monthly payments with these special terms. Therefore, many more buyers can own the home of their dreams much sooner than they ever thought possible.

3. House-Hunting Services

Most realtors offer a house-hunting service which makes it easier for clients to find the homes they want. These programs allow buyers to find out which homes on the market match their home buying criteria. 

To do this, you simply provide your agent with a brief description of the type of home you're looking for. Make sure to include your ideal number of bedrooms, price range, neighborhood, and any other items on your must-have list. Then you should receive advance notice and pictures of all the homes for sale that match your requirements. 

This service gives you a competitive edge because you’ll know which homes are likely to be of interest to you before other buyers even know they exist. Because you are there before most other buyers, perhaps you can even negotiate a better price. You can then drive by these homes, without the assistance of an agent, to see which ones you want to view. You can then narrow down your search by letting your agent know which homes you like and want to see more of.