I've Found an Agent. So What's Next?

[DeMonte Hester]

Okay, so I've networked with a local agent and got signed up for email alerts! What would you guys consider the next plan of action?

[Michael Noto]

This is the general plan of action I take with my owner occupied and investor clients here in Connecticut and I would imagine the process is similar everywhere else. Of course this can be altered a little bit depending on the client but in general this is what you want to do.

1. Get Pre-Qualified: Contact lenders, find one you are comfortable with that offers the type of loan product you are looking for, and get pre qualified. Be sure to ask them what their process is for getting a pre qual letter to submit with an offer when you need one. Any offer you submit through your agent will need a pre qual letter attached with it. It will be the first thing your agent asks for when you tell them you want to submit an offer.

2. Comfort Level: Once you know what you are pre qualified for, then drill down to a monthly payment you are comfortable with. In general I find my clients are pre qualified for a lot more in terms of purchase price than they feel comfortable paying.

3. Market Analysis: After your budget is set work with your agent to see how that budget translates to properties available on the market in your target areas. A good agent will know most of this info off the top of their head if they are experienced.

4. Run the numbers: From there when properies pop up in your feed in your target areas, run the numbers on any info provided in the listing. If there are some gaps in the numbers because the listing doesn't provide them see if your agent can get additional info from the sellers. The biggest example that comes to mind is any current rents coming in from the building. 

5. Drive By the Property: Once the property checks the basics on paper, drive the neighborhood/street the property is located in and see if it is an area you would feel comfortable living in/investing in depending on your strategy.

6. Schedule a showing:  If the area and the numbers are good, inform your agent that it is a property you would like to go see and shcedule a showing.

From there after viewing the property you with the help of your agent will decide if it is a property you want to move forward with making an offer on which is a whole different topic to be honest. These are the steps to get started though. Best of luck. Let us know how your search goes.