Using Your Leverage as a Homebuyer

Many Americans work tirelessly through life’s obstacles to obtain a piece of the real estate market. The reality is that buying a home is both exhilarating and exhausting, and the process presents a number of challenges that affect people from all walks of life and all socioeconomic classes.

photo credit: Neil Kremer via photopin cc

Whether the challenge is completely understanding your mortgage agreement or wrapping your head around the hidden costs of real estate transactions, it helps to understand what you’re up against. It’s never been more important to use your leverage as a homebuyer to find simplicity within a situation that is very complex. You are the one putting the money on the table, and it’s imperative that you know exactly what’s going on during each step of the journey.

Below are the main areas that you should focus your attention on, with the point being to utilize the homebuyer title to your advantage. After all, it could save you thousands upon thousands when closing day comes around.

1. Mortgage agent relations

For many people, a mortgage is the only way to acquire property. Lump sum payments up front for such a significant transaction do happen, but it’s rare. Due to the fact that most everyone enters a lending agreement, it’s a critical focus point for people to use their leverage when dealing with mortgage agents.

A mortgage agent should be a resource for you and your home buying process. Oftentimes mortgage agents are viewed as people that try and manipulate buyers into higher lending fees or questionable agreements. Similar to any other profession, there are surely those people somewhere within the industry. However, it’s your job to be proactive and work in unison with your mortgage agent, because the strong majority of them there to help you. He or she should be viewed not as an obstacle to your housing dream, but rather the gatekeeper of your financial success.

Focal point: Whether you’re a first time home buyer dealing with a traditional lender or a Native American applying for an HUD 184 home loan on tribal lands, the principle is the same. You need to focus your attention on working in harmony with your lending agent. After all, if you’re like the majority, you wouldn’t be able to buy a house without a mortgage.

2. Within the market

As a homebuyer, you are one of many people that control the market. Sometimes people feel pressured into buying a certain house for a variety of reasons. Whether it’s because a listing convinced them which property was their dream home or CNN.com printed that the housing market was going to boom next week, it’s all hearsay and outside opinion.

You are the person that is putting the finances on the table and you are the person that will be living in the house. You need to utilize this leverage to your benefit and not let the market directly dictate your decision. It would be foolish to say that the market doesn’t matter, but it’s wise to understand that the market shouldn’t decide what house you buy. It can guide you in a certain direction, but not seal the deal.

Focal point: Whether you’re reentering the market or testing it for the first time, try and remind yourself that if it weren’t for hardworking people like you, there wouldn’t be a market. You have every right to be picky with listings and take your time with each step along the winding road of prospective homeownership.

Homeownership is the pinnacle of many Americans’ lives. The beauty of the situation is that the decision is all up to you. It’s always nice to have a reminder that emphasizes the leverage that homebuyers inherently possess. While everyone’s situation is unique, the principles of this advice can surely be applied in some way to your situation.

 

About the author: Tim Richmond loves real estate and the idea of homeownership. When he’s not planning his next DIY home renovation he writes for 1st Tribal Lending, a provider of Native American home loans.