Prudential agent guides clients through home-buying process

     Some first-time home buyers, partly due to carelessness and ignorance, make costly mistakes during the home-buying process, according to Bill Margita, a real estate agent with Prudential Americana Group, Realtors.
      Margita suggests home shoppers become educated consumers before making a decision.
      "From the moment you think about buying a home, start planning," Margita said. "Home-buying is a time-consuming and demanding process, and it behooves you to utilize your management skills early on."
      He suggested home shoppers start by requesting a copy of their credit reports to check for mistakes, and if they are renting to check their agreement for an early release clause.
      "During this planning phase, consider your life over the next five to seven years," he said. "Do you plan to start a family? Will an in-law eventually move in with you? Will you be working from home? The number and layout of the rooms you require will depend on your answers.
      "If you qualify for financing based on a dual-income, will you be able to survive on one salary in order to fulfill a long-range plan, such as one parent staying home to raise a child? Once you've answered these questions, establish a plan. Then direct the process with reference to the plan. Don't let the process dictate to you."
      First-time home buyers may need the assistance of a real estate agent.
      "Find someone who is willing to explain the entire home-buying process -- from viewing homes to negotiating, to financing, to escrow and closing -- in detail, and explain it again until you understand it," he said.
      Asking an agent to explain loan and contract terms may help avoid unwanted terms and lead to a better deal, Margita said. All documents should be reviewed before signing a contract.
      "When you decide on a deal, get every detail in writing, in particular, the lock-in rate, points and fees, and request a copy for your file," he said.
      To avoid buying a home that is too expensive for their overall budget, he recommends buyers track personal expenses for a few months and find an expense level that fits.
      Getting preapproved for a mortgage, not just prequalified, is also important.
      "Prequalification only tells how much you can afford," Margita said. "Preapproval goes a step further. Your lender will thoroughly evaluate your application, including verifying employment information and financial disposition, then clear you for a loan of a determined amount. Having your loan pre-approved gives you a sizeable advantage: Your new status as a cash buyer makes you more attractive to the seller.
      "Just because you've been approved for a certain amount doesn't mean you'll feel comfortable with monthly payments at the high end of the range."
      Objectivity is also important.
      "Curb appeal can be a powerful force," Margita said. "It's the first-time home buyer's kryptonite."
      He suggests looking at different types of homes. With each one, list positives and negatives, measure the rooms, visit the area at various times of the day, and observe traffic patterns. A home purchase is more than what's within the property line. Zoning and development plans can change the image over time.
      "Think about how long you plan to own the house," Margita said. "Would it be difficult to resell? List the negatives. Could you eliminate or reduce them?"

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