By now I think we all know that foreclosures are up, which is driving prices down, which is encouraging buyers to get out there and buy “bargain” homes while they can — sales are up in 17 states, including Nevada. 

One huge group of buyers is the first time buyer. They see that they can now often buy a house for what it had cost them to rent. They see that interest rates are low. They don’t have to get out from a house that’s worth less than what’s owed on it to take advantage of the current market. They see that $8000 first time buyer tax credit. 

There’s exciting news about that credit now: it looks as though it can actually be applied directly to the downpayment. This is brand new, not yet finalized, and details of the program aren’t available yet. No word on what paperwork has to be filed with whom, nor how long it will take to get the downpayment into the escrow account. This means buyers get the benefit now instead of next April. Remember, you’ve got to buy by November to take advantage of this.

Obviously, first time buyers are not experienced in buying a house. They can get caught up in scams. They don’t know what is normal in a real estate transaction. They don’t know what needs to be done to protect their interests. They don’t necessarily know what to look for when evaluating properties. That’s where a Realtor comes in. But with so many people calling about these homes, how does the Realtor know you are serious, and not just looking? How do you make her excited to work with you?

Here’s how to set yourself apart. Before you ever call a real estate office, talk to your bank about a mortgage pre-approval letter. This does three things. First, you will know exactly how much you can afford — or let you know you can’t really afford anything yet. What’s the point of wasting a weekend looking at homes it will turn out you can’t buy? Second, if you do find that dream house, you will need that pre-approval letter to show the sellers that you are serious, “ready willing and able” buyer. Third, it lets the Realtor know that you are organized enough to have thought about the fact that you need a mortgage to buy a house. Have that letter in front of you when you call the real estate office for the first time, and let her know what it says.

If you can’t talk to your bank, or think better deals can be had elsewhere, there’s still a way to impress your Realtor that you mean business: ask your Realtor up front who she recommends to get you that pre-approval letter. She has worked with a number of mortgage brokers, and can probably give you a short list of reliable people she trusts to get the job done. This will tell her that not only do you understand what it takes to buy a house, but that you trust her judgement.

I am available to help a limited number of first time buyers. If you seriously want to buy a home, I want to help you do it! I will save you time by asking serious questions about what you need and what you want in a home before we ever start looking at listings. I’ll tell you what the real estate market is doing and advise what to do about it with no nonsense. To find out more, call the number at the top of this page, or click the “Contact Me!” link in the sidebar.