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First-time home buyers receive tips on how to enter local market


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Wednesday, May 18, 2011

Buying your first home is one of the most important decisions you will make. To prepare yourself, you need to first make sure your credit history is in order; select a highly skilled real estate professional who can help you through the process; decide on the type of home you are looking for; and then, learn how to clinch the deal.

Members of the Silicon Valley Association of REALTORS® gave potential buyers tips on each of these topics last weekend in Cupertino. The last segment of the seminar was presented by The Housing Trust of Santa Clara County.

Presenting advice on credit, Richard Miller (Proficio Mortgage Ventures), Kenneth Chan (HSBC), and Jimmy Kang (Bank of America) said now, more than ever, a buyer's FICO score is very important. Miller recommended that potential buyers check their FICO score at least once a year to make sure their credit report is accurate; six credit cards are ideal; and make sure debt on each credit card is no more than 30 percent of the allowed credit. Chan informed international buyers of requirements for buying property here in the U.S. Kang talked about the different loans available for buyers.

A panel of REALTORS® with Chris Alston (Keller Williams Realty), Nina Daruwalla (Coldwell Banker), Grace Keng (Re/Max Real Estate Services), and Moise Nahouraii (Referral Realty) informed prospective home buyers that these days, in addition to having a good credit rating and history, they need to get pre-approved by a lender before they start looking at homes or contacting a real estate professional. They differentiated between a REALTOR® and a real estate agent, indicating REALTORS® pledge to abide by a Code of Ethics. They reminded buyers there is no "perfect home," but with the help of a REALTOR® who is knowledgeable and employing good negotiating strategies, one can find the best property for the best value and clinch the deal.

Strategies for clinching the deal depend on the comfort level of the buyer. They include: have your agent present your offer in person to find the motivation of the seller and possible areas where the seller has flexibility; make your agent request you are willing to look at a counter offer; be available to communicate with your agent quickly during the offer presentation process via phone, email, fax, or in person to sign additional paperwork quickly since your signature is required on any counter offers; put down a higher than normal deposit; put a maximum amount of down payment;  agree to a shorter contingency period for inspection and financing; offer incentives to the seller, like free rent back; purchase the home "as is."

Dan Lachman, program manager of The Housing Trust of Santa Clara County, then shared information on programs that provide financial assistance to first-time home buyers, including the Closing Cost Assistance Program (CCAP), the Mortgage Assistance Program (MAP) and Equity Share Co-Investment (ESCO).

"Almost 80 percent of all home searches today begin on the Internet. With just a few clicks of the mouse, home buyers can search through hundreds of online listings, view virtual tours of neighborhoods and homes," said Tess, Crescini, chair of the local trade association's Equal Opportunity Committee. "Many prospective home buyers don't realize a lot of preparation is needed before their search. We hope we were able to educate them about these important steps, so their home buying experience can be successful."

The City of Cupertino co-hosted the weekend's seminar with the Realtors in observance of Affordable Housing Week. Also represented at the event were counselors from SurePath, West Valley Community Services, Neighborhood Housing Services Silicon Valley, Project Sentinel and Habitat for Humanity.

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The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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