Before reaching this stage, however, the first step is to do an analysis of the buyer's financial situation to determine an affordable price range, says Degnan. Considering that a seller receives a lot of multiple offers, buyers who have a pre-approval on a mortgage are in a much stronger position than those who do not. Degnan says a common concern among first-time buyers is making sure that they receive good value in a home. Degnan says most homebuyers also need assistance when it comes to understanding how much home they can afford. Of course, it works both ways.
Some buyers discover that they have to go a little bit lower than they first believed.
That's why counseling through a mortgage broker is so valuable. A consultation of this type also opens up the possibilities of flexible financing programs. Adjustable rate mortgages, as opposed to the cost of a 30-year mortgage, open up many possibilities for buyers. Carmen Mastrangelo, of Better Homes and Gardens, points out that the wide use of the Internet has had its good and bad points. I like to think of real estate services as the off-ramp of the Internet.