You have to think of your realtors as people you need to outwit -- they have their own schemes, and you should be able to see through them in able to secure the best purchase for yourself. After all, it wouldn't be a fun-game if it were so easy, yes? Just like how it is with any game, this one should not go without a "walk-through" or a "cheat sheet," as it is called in game parlance, that would enable you to better assess your odds and plot out your victory. If you are a total newbie to the "house search" game, refer to these three basic rules:
Rule #1: Never base your projected mortgage expense on 100% of your income. When your agent asks you for a budget, it is wise to give a figure that is around 50% or so lower than what your actual take-home income is; that ought to give you enough stashed away for other basic necessities. Always take emergencies into consideration during your house search, like unwelcome eventualities that would need hospitalizations or a potential lay-off from your present job, which would adversely affect your payment routine. And, no matter what you choose to invest in, always save at least 10% of your take-home income -- this is good practice..
Rule #2: Don't waste your time with agents who sell houses priced above your budget. These are seasoned agents who think they have you all figured out and you could shell out some more than what you say you could if they showed you a dreamy package to invest on. Naturally, if they sell high, their corresponding sales commission is bigger. Commissions are an agent's lifeline, and no sale means no commission. When an agent relentlessly pursues your case, encouraging you to make a loan so you could "finally purchase your dream house," consider it as "cheating" in this game of house search and immediately announce that you would want to talk to another agent. That ought to bug cheaters off.
Rule #3: This is one of the lesser-known ways of bagging the game in your favor -- it is called acquiring a house through owner-financing loan.
What is "owner-financing"? As the name implies, it is where you, the buyer, do away with middleman and deal directly with the seller/owner of the property you want to purchase. For this, you plead with the seller to accept some earnest money (usually10%-20%) from you as down payment and, for a higher interest on your remaining balance, request the owner to allow you to pay in trickles on a monthly basis because you oh-so-want-that-property but, honest to God, that's all you can afford. You don't have to shed a tear for this to be convincing - just drop that silly grin off your face and sport a cat-begging-for-food look in those eyes.
This is definitely the wisest path for you to go but, as you can see, most sellers feel that this deal is not in their best interest so you would rarely find a seller who'd agree to owner-financing. The trick in winning this game of house search is for you to locate one seller/owner who'd be desperate enough to enter into such an arrangement with you just so he could finally sell his property without waiting some more or spending some more on advertising it.
The point in this "house search" game is to get yourself settled in at the soonest possible time with the least amount of financial discomfort. When you find a seller who'd agree to owner-financing, man, you've made it!
