So, you are a buyer.  What does it mean to be a strong buyer?  Being a strong buyer is the difference between you getting the house/property or not.

There are a lot of buyers out there.  Agents are not too excited to take out buyers who aren’t qualified and working with a lender because the interest rates have taken dramatic changes in the past few months.  Not only do we want you to understand what you will be paying before you go looking, we want you to be able to bid on a great property when you see it.  As our inventory continues to decrease, the less time there is to make that offer.

Right now if you are in a conforming or an FHA loan (not a Jumbo loan), you can purchase a home with little money down.  When positioning yourself to beat your competition of other potential buyers, be prepared to disclose your credit score, or be prepared to put down more earnest money that requested to show your interest and your certainty that you want the property.  You can prepare yourself to put down 20 percent of the purchase price, this would make a seller hopeful that you are not going to back out because you don’t like your interest rate in the end.

Be sure who your lender is going to be and that you are working with them and not against them.  I was at breakfast and I overheard a buyer talking about changing lenders in the middle of their transaction. They aren’t even my client but I start to panic!  Are you kidding?  The repercussions here can be as little as purchasing 2+ appraisals ($600-$3,000) or worst case it could possibly mean losing the property and their earnest money to the Strong Buyer who is prepared to make it happen.

Most importantly the lender needs to be prepared to work for and protect their clients through the transaction.  They need to be compliant with the dates written in the contract, lock the interest rate, order the appraisal, and protect the clients best interest the entire way.  Pulling someone in during the middle of the transaction can mean extra costs the buyer isn’t prepared to pay.

Choosing a lender because of rates alone does not mean they are qualified to get the job done.  You need someone who is going to help you be the strongest buyer in the market.