You’re pre-approved! Now, go buy a house, but don’t do it alone!

You’ve sought the knowledge and professionalism of a mortgage originator to get pre-approved for a mortgage.  You now know what the current rate is, you know how much you need for a down payment and closing costs, and you’ve got a letter in your hand that says you can buy a house for $XXX,XXX.  Now you’re ready to go “house shopping.”  But you’re not working with a realtor.  WHY NOT?!!

Many home buyers, especially first time buyers, don’t realize that the seller of a home pays the realtor’s commission.  That means that if realtor Joe Smith has a house listed with a 6% sales commission, he is willing to split that commission with any realtor that brings a buyer to the home.  So if you’re working with realtor Mary Jones, she brings you to Joe’s listing and you buy it, Joe splits the commission with Mary.  Mary will assist you with negotiating the price, filling out the proper forms, recommending an inspector, and most importantly, Mary knows the laws necessary to make sure you are legally protected as a home buyer.  Joe does know them as well, but Joe’s responsibility and first obligation is to his seller, so while you may think it’s ok to just call the agent whose name is on the sign in front of a house, you still want someone working on your behalf and yours alone.

If it turns out you don’t like the house that Joe has listed, you can have Mary do a search on the MLS for the specifics of a house you have in mind and in your price range.  If you want three bedrooms, two bathrooms, fireplace, swimming pool, finished basement, etc., Mary can look that up in the MLS and get you a list of houses that meet your wants and needs.  You may think that you can do that yourself with the internet, but if a house goes on the market today, it may not hit the internet for a day or two.  In the meantime, another buyer who is working with a realtor will get to see it before you and might beat you out on the home of your dreams.

Summing up, you wouldn’t try to get your mortgage without seeking the help of a qualified professional, don’t do it when you’re ready to buy your home.  The service is literally free and priceless!