As a Buyer, do you tell your Realtor your real budget? (Houston: movers, coop)

[houstonfan]

Be honest. Find an honest realtor. That is the best combo. But you be firm on what price you want for a certain house. And I agree with CJ, it's what your monthly payment total should be and down payment (b/c houses varies by HOA, tax, insurance, maintenance repairs, etc) A good realtor can help look at your budget, family situation and work those things out for you.
They only make 2-3% of the transaction (b/c a lot of times, the company they work for retain part of their commission) so most likely, it's not worth it for them to push you up 5% beyond your max, and not worth it for them to negotiate too hard down either.
I would not rely 100% on the realtor though. I would look at Har.com and look at everything a little above your maximum (assuming that you know you can afford more if you see that 'pefect' house) all the way down to $1. I would put in the zip and bdrms, yr built and other absolutes you need to reduce the hits. That way, you can alert your realtor to something you want to see and not just rely on them to find it for you. Because, occasionally, you might find that perfect house 10% above your budget and with some negotiation, your monthly payment may increase by just a few $, or that house has less tax/HOA than another house priced less so net monthly is the same.
One final thing, remember that the final decision is up to you, regardless of what your realtor says. Of course, a knowledgeable realtor is prob giving you correct advice so you're prob best listening to them but if for whatever reason you dont want to execute the deal, you can say no. If you have doubts, there are plenty of research tools out there. Ask your realtor to show you recent sales in that neighborhood to compare and ask them to justify their advice if you still have doubts.

[tmc300]

Thanks for all your advise and suggestions. Buying a house is getting more and more complicated. I first spent a lot of time searching in the internet for a good place to raise a family. Then search in the internet for quality & reliable home builders. Right now, I'm searching for an experienced, honest, and competent Realtor. The next step is finding which mortgage company to apply for loan. I hope the mortgage part is straight forward. Just fill in the forms and see how much are you approved for.

[loves2read]

IF you qualify for a credit union membership (if you don't belong to one already) you might see if they offer home loans--
or smaller banks in your local area vs a major bank--
go to bankrate.com and check for rating information on banks/credit unions--don't mess with anything that is not rated 4 star if you are in place as large as Houston

too many of the big/major banks are just drowing in their foreclosures right now--I don't think that is the place you want to get a long term mortgage--they will just sell it away anyway

[cheryjohns]

Good advice all. Loves2read is right - the worst three to deal with right now are Wells Fargo, Chase and Bank of America.

[Houston Home Boy]

Always tell your agent the truth! They don't want to waste their own time either if they know you can't afford it! Be leary. Don't go with the "top producers" they are the worst.

[City Love]

Originally Posted by cheryjohns

Good advice all. Loves2read is right - the worst three to deal with right now are Wells Fargo, Chase and Bank of America.

Those 3 are also taking forever in processing and underwriting!

Two current listings I have under contract have a buyer with Chase and another with Wells Fargo. Chase is going on 50 days already and Wells Fargo is at 45 days. We still haven't closed. I know this isn't always the case, but it's becoming more common.

The smaller banks have been much better at processing the loan.

As for the main question asked by the OP.

Tell your Realtor a price range, but that you prefer to be closer to a certain number. If you have a Realtor that you feel isn't looking out for your best interests, then change. There are countless good Realtors to choose from. It's just a matter of finding the right one.

[cyfairre]

Originally Posted by tmc300

Thanks for all your advise and suggestions. Buying a house is getting more and more complicated. I first spent a lot of time searching in the internet for a good place to raise a family. Then search in the internet for quality & reliable home builders. Right now, I'm searching for an experienced, honest, and competent Realtor. The next step is finding which mortgage company to apply for loan. I hope the mortgage part is straight forward. Just fill in the forms and see how much are you approved for.

If you are set on building or purchasing from a builder, you definitely should at least see what types of incentives they are offering for using their loan company. The rates builder's lenders offer are usually comparable to the lower rate deals on BankRate, etc., and mortgage rates can be negotiated.

[Houston321]

It's not that complicated at all actually. Settle down, take a breath, search for a floorplan that you like with a reputable builder and a recommended realtor. Get your loan documents in order and build your home. There is no need to play games, tell half-truths..etc to set up for a fierce negotiation and battle throughout the process.

Most builders are going to offer extra incentives for using their in-house lender, so be open to that as well. Just get quotes from a couple and compare/contrast the deals.

[sunny57]

[quote=tmc300;16197856] Right now, I'm searching for an experienced, honest, and competent Realtor. The next step is finding which mortgage company to apply for loan.

Applying for your loan should be your first step...may end up taking more time then you anticipated and sometimes surprising finds.

Finding a Realtor second....

Stay away from the brokerages that want both sides of the transaction... ie... agent/lender.... or brokerages that push their companies coop lender or title company. (Can't see it represents their clients "best interest".) Look for an agent that is local to the area you have interest in... they will provide a well rounded picture. Take sometime and create a pros & cons list of what is important to you... it will help refine your search & save you time. Be upfront with your agent about your likes vs needs. The art of buying or selling a home ... involves a lot more than the "sales" price.

Best of success...Sunny.

[cheryjohns]

Deutsche Bank foreclosures will no longer accept offers from people pre-approved by Wells Fargo, B of A, or Chase. Hilarious. The big banks no longer trust the big banks.

I have had good experience with iwayloan - competitive rate, low closing costs, speed and efficiency. At least the loan officer I deal with.

Back to the question, I agree there needs to be a ceiling - you don't want to look at homes above your desired limit. Not only is it a waste of time, it ruins the homes under that price. How can a $250K home look good after viewing homes $350K? How can a $350K home look good after viewing homes $450K? ....and so on....and so on.