Let’s Get Started!
Buying a home is one of the largest financial transactions you will experience in your life. From the beginning steps of financing to signing on closing day, you must have best team of professionals on your side to ensure a smooth process.
As your Realtor®, I will help you feel confident throughout the homebuying journey and will clearly outline each integral step and party that take place and participate in the transaction. Are you ready to buy a new home?
Let’s Get Started!
Tackle Your Finances
1) Before buying a home, you must be financially prepared. To begin the process, start saving for a down payment. While most buyers believe you must have 20% saved, there are many programs that allow a mortgage down payment of 3%, 5% or 10%.
2) While you are saving for a down payment, check your credit report to identify areas of improvement. We are assigned a credit score between 350 and 800. The higher your score, the better chance at a lower interest rate and approval. Those buyers with damaged credit risk being denied of a home loan until debts are remedied or resolved.
3) Now that you have saved for a down payment and your credit score is in good shape, it’s time to find a lender and get pre-approved. During this process you will meet with a loan officer to go over your debt to income ratio, assets, and income to determine what amount you will be granted approval to purchase. This is a great time to connect with a local Realtor® to be introduced to their network of preferred mortgage lenders.
Why Hire a Realtor®?
1) A good Realtor® has a thorough understanding of today’s Current Market Conditions and Trends and can help decipher what they mean to you as a buyer and help them work to your advantage.
2) Pricing is a significant aspect of your offer to buy. A trusted Realtor® can help you examine comparable sold properties and investigate various pricing models to help you present a competitive offer.
3) Throughout the entire transaction, you need someone in your corner to negotiate in your favor and understand key strategies to help you and the seller come to terms and help close the deal.
4) Today’s real estate transactions are heavily regulated and require a great deal of Disclosures and Paperwork to protect all parties. You need someone who is detail-oriented and well-versed in state forms on your side.
5) Buying a home is full of emotion and many things come up during the process. Having a trusted Realtor® with Education and Experience can keep you stress-free and on track to closing regardless of what might arise.
Understand the Buying Process
With your pre-approval in hand and a plan in place, you get to experience the fun of home shopping. Together, we will discuss what specifications you want in a home and what areas of town best fit your needs. Next, you will be set you up to receive instant notifications of new listings from the area MLS. Additionally, I will scour off market properties to help you find the home of your dreams.
When it comes to submitting an offer, there is much more to consider than just purchase price. Together, we will ensure you are in a position of strength and can make an informed decision when executing an agreement.
Ratified The period when parties in a contract accept and acknowledge agreed upon terms.
Comparative Market Analysis (Comps) A detailed look at recently sold properties in the same area to determine your desired Purchase Price.
Earnest Money is money paid to a seller and held in an escrow account until closing when purchasing a home. The deposit represents a buyer’s good faith to buy the home and is typically, 1% of the purchase price.
Closing Costs are comprised of a combination of fees that include loan origination, appraisal, taxes, insurance and all items related to applying for a home loan and transferring the property into the buyer’s possession.
Due Diligence is a period of days agreed upon between a buyer and seller that allow the buyer to conduct inspections and investigate the property before moving forward with the purchase. Buyers commonly perform home inspections, CL-100 or pest inspections, investigate property associations and request surveys during this time period.
Contingencies are items that have to be fulfilled in order for the transaction to proceed. Common home buying contingencies include a buyer selling their home before purchasing another, home inspections, financing, and appraisals.
When purchasing a home, re-sale or new construction, various inspections are recommended and encouraged. A licensed professional can conduct a thorough inspection of all major home systems such as electrical, roof and attic, plumbing, appliances, general structure and others to ensure you are purchasing a property that meets your needs and the expectation of the home you have seen. Home Inspection prices begin at $350 and can increase depending on the size of the home. Additionally, a home inspection is a contingency to the purchase agreement and must be completed and repairs negotiated within the due diligence period agreed upon in the contract.
Once you have a “ratified contract,” you have a defined number of days to apply for your home loan. When all documents are provided to your lender, the loan goes through underwriting. This process is conducted by a professional underwriter who uses specialized software to analyze your information and documentation and determine the outcome of your loan application.
Home loans can be contingent on an appraisal. If you are financing your home, it is often required by the lender. An appraisal is an opinion of value in regard to size, condition, function and quality. A licensed real estate appraiser will visit and inspect the property and then research similar homes to determine the “fair market value.” Following this research, the appraiser will report a final opinion of value to the party requesting the appraisal. In a competitive real estate market, appraisals help ensure buyers don’t overpay for a home.
After your loan has been fully underwritten, you are given a final loan approval or “clear to close.” Once clear to close has been issued, your lender is ready to fund your loan and will work in conjunction with your attorney to prepare final paperwork for all parties to review.
Today is the day you go from home shopper, to home owner! Before signing on the dotted line, you will do a final walkthrough. Together, we will walk through the home one last time, to ensure all of the seller’s belongings have been removed, repairs are complete, and any appliances and fixtures that should remain are still in place.
Who will be at closing?
- YOU (the buyer)
- ME (Buyer’s Realtor®)
- CLOSING ATTORNEY
- LISTING AGENT AND LENDER occasionally attend
- Earnest Money Deposit: 1% of purchase price
- Home Inspection: Starts at $350
- CL-100: $75 – $200
- Appraisal: Varies but typically $400 – $500
- Closing Costs: 1% – 3.5% of purchase price
- Down Payment: To Be Determined