Real Estate Wis-dumb!

Every time I blog, I try to share tips that I have learned from my 10+ years buying, selling, managing and flipping real estate. Today is no different! Today is about the importance of honing your craft! Too many people pick Realtors and lenders because they are friends and neighbors, of course that doesn't mean don't use your friends, it just means DO YOUR HOMEWORK! A good realtor will continue to hone their craft every year. They will not only sell houses, but they will also attend continuing education classes in areas that pertain to the local real estate market and the economy.

Here are some important ways to make sure you are getting the best REALTOR for you!
1. Check their references
2. Call their past clients
3. Check the State and County Board of Realtors website to make sure their license is in good standing!
4. Talk to friends and lenders to check realtor reputations
5. Have the realtor show you what they have represented for buyers and sellers over the last 24 month, if it similar to what you are looking for, that's helpful! If its not, think about whether or not you want this person helping you spend hundreds of thousands of YOUR dollars.
6. Your Realtor should be a wealth of knowledge not just a salesman!! He/She should thoroughly understand the market that you are shopping in. Good Realtors spend time looking at houses and knowing their market!

On the other side of buying real estate is the Lender or Bank. Most people have traditionally shopped for a lender based on interest rates that they lure you in with. Interest rates are important, but honesty at the beginning of the lending process could save you months of anguish in the end. I am here to say that not all lenders are created equal!!! Much of the current real estate crisis can be blamed on dirty banks and dirtier lenders!! Shop smart when looking for a lender, you aren't buying a used car, you are buying a payment for 30 years that will be the roof over your family's head!!! Make sure it is a commitment you are ready to make! Conventional wisdom still comes to play here... use your best judgement, if it sounds too good to be true, it probably is! Here are some tips for watching your back and finding the right lender, so you don't end up down the foreclosure road!!

Important tips for picking the right LENDER!
1. Ask the lender to provide you with a list of all the fees for their services as well as fees through the life of the loan.
2. Just as important as interest rates are POINTS, those are loan fees tacked onto the loan, that are really similar to paying a higher interest rate, but sneakier! So make sure when a lender gives you a quote that you are actually comparing apples to apples!
3. Check the lenders reputation, can they close the deal! With so many banks having trouble these days, you need someone to be straight with you from the beginning, can you afford what you are buying, can you pay all the fees and close the deal?
4. Get REAL about what you can afford! How much can you put down? Can you afford the payment? Does it include impounds (property taxes and fire insurance)? Is their mortgage insurance? Too many people over buy to keep up with the Jones' not realizing that getting an interest only or negative amortization loan will come calling in 3-5 years and your payment could double!!! Are you ready for that?
5. Don't be sold on a loan that is too risky for your family. Remember this is your HOME! Don't let the lender sell you the wrong situation for your family, just so they can get a $1000 commission on something you are stuck with for 30 years!

All the pessimism aside, I very strongly believe in the use of Realtors and good lenders, just do your homework, so you don't get stuck in a bad situation!

Good luck and happy home buying!