3. GET A REAL ESTATE AGENT

Now that you've been preapproved for a mortgage, you know exactly how much you can afford to spend on a house. The next step is to find an agent. But why even use an agent? The reason is because the seller almost always pays for the commission for the sale of a house. That means that you, the buyer, are able to utilize the services of a Real Estate Agent for FREE. Pretty neat, huh? So you might as well use one.

A real estate agent has the tools to help you find a house that fits you and your budget. This includes access to more listings, educating you on the types of home loans that you might qualify for, assisting you with escrow requirements and eventually preparing the final contract for your new home. Plus, it sure helps to have a pro by your side when you're dealing with something as expensive as buying a house.

Here's the biggest tip you can get regarding agents: make sure that you are talking to a buyer's agent and not a seller's agent. For example, if you see a house you are interested in, don't use the agent representing that property to make the deal for you (translation: don't call the name on the "for sale" sign). That agent represents the seller and will try to make sure the deal is to the seller's advantage, not yours.

Where do you find an agent?

  • Look in the phone book under Real Estate. Duh.

  • Check out Real Estate ads in newspapers and magazines. Double duh.

  • Start with reputable agencies with names you're familiar with. That means talking to someone at RE/MAX or Century 21 before talking to someone at Bob's Realty R' Us.

  • Check to see if the realtor you want to deal with has a presence in the area in which you're looking for a house.

  • Ask someone who recently bought a house for the name of the agent they used. Then go out and compare.

  • Talk to a few and feel them out. Ask them for references. See if you feel they're being honest with you. Though the real estate agents' reputations are even lower than used car salespeople, there are a few good ones out there.

  • If an agent tries to pressure you into a house that you don't want, DROP THAT AGENT IMMEDIATELY. You don't have time for such silly reindeer games.

  • Make sure the agent you choose has been licensed by the state in which you are looking for a home. This is no time to deal with amateurs. Stick with the pros!

  • Hunting for a house can't be done in a hurry, so pick an agent you feel comfortable working with over an extended period of time.