BBB Midwest Plains: Secrets of successful homebuyers

Better Business Bureau (BBB) of the Midwest Plains recently hosted a webinar that featured experts from Nebraska Realty, Pinnacle Bank and First National Bank, who shared insights on the home-buying process. Here were the primary takeaways.

1. Steps to buying a home

   • Initial appointment to discuss the market.
   • Obtain pre-approval from a lender.
   • View homes and write a contract.
   • Perform inspections, finalize paperwork, and close the deal.
   • Key delivery and home ownership.

2. Pre-qualification vs. pre-approval

   • Pre-qualification: General estimate based on stated income and assets.
   • Pre-approval: Comprehensive review of financial documents, providing a more reliable estimate of borrowing power.

3. Real estate investment strategies for beginners

   • Start with purchasing a personal home or an owner-occupied multifamily property.
   • Utilize loan types that allow lower down payments.
   • Plan for risk management and seek advice from lenders.

4. Mortgage application documents

   • Pay stubs, W-2 forms, tax returns, bank statements, and details of any gifts or additional assets.

5. Importance of home inspections

   • Identify potential issues before purchasing.
   • Provides peace of mind and helps avoid costly surprises.

6. Value of having a realtor

   • Expertise in local market knowledge, negotiation skills, and handling paperwork.
   • Saves time and provides unbiased advice.

7. Impact of credit score on mortgage rates

   • Higher credit scores generally result in lower mortgage rates.
   • Understanding the four C’s: Character, Credit, Collateral, and Capital.

8. Current real estate market trends and predictions for 2024

   • Expect continued competition due to supply and demand imbalance.
   • Interest rates may fluctuate, but getting started now can be advantageous.

9. Benefits of pre-sale home inspections

   • Helps identify and fix issues before listing, making the property more attractive to buyers.
   • Reduces the likelihood of surprises during the selling process.

10. Making a competitive offer

    • Beyond price, consider loan type, contingencies, and seller preferences.
    • Offering quick inspection turnarounds and post-occupancy flexibility can make your offer more appealing.

11. First-time homebuyer programs

    • Programs like NYFA offer downpayment assistance and subsidized interest rates.
    • Early application for grants can be beneficial due to limited funds.

12. Mortgage process timeline

    • Typically takes 30 to 60 days from application to closing.
    • Pre-approval and timely submission of documents can expedite the process.

13. Home inspector services

    • Home inspectors do not typically perform repairs to avoid conflicts of interest.
    • Recommendations for contractors can be provided.