TOP FIVE: Buying in a tough market, Part 1. BEFORE you look at houses

Here are my TOP FIVE things a Maryland home buyer should do BEFORE even starting to look at properties:

1. INTERVIEW REALTORS. There are thousands of active Realtors in Maryland. If you don’t know one personally, no doubt you know someone who knows someone. But before you hire your friend’s aunt or your buddy that decide to get his license during Covid…find 3 to interview or at least have a phone conversation with. Hire a Realtor with experience! They should be able to suggest other professionals that they have strong relationships with (lending, title, inspectors, handymen, plumber, etc.). You’ll need this “team” through the process. Ask them what they think of the market and how they are best advising buyers in it.
2. FIND A LENDER. Your Realtor should be able to suggest the area’s best lenders to you. I always tell my buyer clients to get estimated “fee sheets” from any lender they are considering. If a lender won’t give you the time for an estimate or doesn’t ask you to show your financial situation, perhaps you shouldn’t consider them.   You need a lender with real knowledge and with customer service…even at 7pm on a Saturday! 
3. UNDERSTAND YOUR NUMBERS. I can’t stress this enough. I don’t care if you are a Maryland First Time Home Buyer or ready to buy an investment property, you must know your purchase power and what that actually means. This market is very fast paced. A property gets listed, and you must be able to react quickly! There is no time hesitation. You should have a solid grasp on your max purchase price and also the monthly payments and total settlement charges.  
   If you have spoken with a lender and you don’t have hard cost amounts to review, you are with the wrong lender. I’ve been working with Coastal Lending Group for over 15 years now. My buyers know the difference between “money down” and “closing costs”. They know their estimated monthly payments inclusive of taxes and insurance. When they are submitting offers and negotiating, they are 100% knowledgeable on changes of all costs.
4. KNOW YOUR TIMING. I have this happen frequently. A buyer calls me to start the buying process. I get them situated with a lender and they truly understand their numbers and limits. They want to start looking at houses, but their rental lease doesn’t end for another 6 months. Especially in this market, looking at houses right now makes no sense because they won’t be available by the time you are ready. Instead, you should drive to the houses you think you may like. Learn Maryland’s best areas. Go to the local grocery stores! This is also a great time to eliminate areas from your search.
5. WATCH YOUR SPENDING. Often times buyers do things that they don’t even realize hurts their buying power. In fact, Whitney Rice of Coastal Lending Group, just started giving her clients a list of things NOT to do. For example, now isn’t the time to buy a new car or miss a student loan payment. Put yourself on a budget. It’s so easy to go out and blow $200.00 on a night out and another $200.00 shopping on Amazon! Start socking that “extra” money away. Whitney will teach you what you can do to help AND hurt your credit.