Well you have found yourself here in search of your new home. Whether you are a new home buyer or have bought and sold many properties in your life, I hope you find this information of the home buying process useful. The following connections take you through the step by step process of buying a home and you are welcome to follow along or jump to the information that you are specifically looking for. So let's get started!
Step I - Initial Consultation
----------------------------------------
Here is where we begin your journey to buying a home. Whether you are a first time home buyer or a seasoned pro who has bought and sold several homes, this step is vital to establishing our lines of communication. During this conversation we will go through an overview of the different areas that you would like to live. We will also discuss what characteristics you are searching for in your new home. (i.e. - number of bedrooms, baths, etc.) In addition, I will outline my responsibilities to you, as your agent:
To diligently locate property that meet your specifications through MLS, for sale by owner, new construction, and any other method to find your house.
To diligently represent and advise you on price, location, features and amenities. To assist you with the negotiation strategy for the selected property through a written CMA and to present all offers to the seller's agent. To be available to view properties with you.
To safeguard and protect any confidential information on your behalf. To disclose to you any positive or negative features of the property that may affect any future sale. To assist you in the negotiation process and once signed, helping in securing additional services (i.e. - financing, inspection, etc.). To assist you with the review of the inspection report. To provide information relating to the approximate closing costs, down payment, and monthly payments required for the transaction. To accompany you through the final walk-through and assist with any problems discovered. Monitor the progress of your transaction throughout. Disclose to you any material non-confidential information that would affect your decision to purchase the property. Finally, I will provide you with your Buyer Toolkit. Again, whether you are a first time home buyer or are experienced in the world of "homes for sale," the toolkit will help you keep all of the information, and your thoughts organized.
Now on to our next step......
Step II - Getting Pre-Approved
----------------------------------------
The second, and one of the most important steps, is getting pre-approved for a mortgage. Now don't be scared, a mortgage pre-approval does not bind you to anything. It is a very quick and painless process that usually takes a couple of hours to a couple of days. All it does is specify the mortgage amount that you are eligible for. This is important for you to know to help determine the price range that is available to you. Please feel free to use my MORTGAGE CALCULATOR to help get you started. In addition, when we submit an offer on a home, it helps to strengthen your position when the seller is assured that you will more than likely get the financing for the house. By doing this step before we look for houses, we are able to act as soon as we find one that we like. This helps eliminate the possibility of losing out on a house that we find because someone else, who has already been pre-approved, comes in a puts an offer in while we are waiting for your pre-approval to be done. I can provide the names of a couple of loan officers for you to talk to so that you can have a comparison to choose from.
Now on to our next step......
Step III - The Home Search
--------------------------------------------------
Here I will provide you with real estate listings of homes for sale. We will start broad so that we do not exclude any possibilities. You will then select your favorite 3-5 homes for our initial home tour. It usually takes about 3 houses for you and I to fully assess what traits you want and need in your new home. At this point, if we haven't found your dream home, we can narrow our search to hone in on the area and type of house that you are looking for. I will provide you with consistent updates of homes coming on the market and if you are too busy to see a home right away, I can preview the home to see if it meets your specifications. It is important to note that after we view each house I will ask you, "Why not this house?" This will help clarify what your needs and wants are.
O.K., we have found the house you want. I will then do a quick Comparative Market Analysis of what other homes are for sale, under contract, and what has recently sold in the area. This will help us determine an appropriate pricing strategy for the offer. Once we have come up with a price we will sit down and fill out the purchase and sales agreement. I will review each part with you as we go through, starting with the property information and all fixtures that are included in the sale.
Next, we will cover price, down payment, and the financing you will be using. Finally, we will go through the rest of the contract and contingencies that you may want to add or delete from the contract. After we have everything filled out, I will take your offer and present it to the seller's agent. I will then assist you through the negotiation process until we have an agreed upon offer. Once we have an accepted offer your earnest money will be placed in an escrow account.
We are now, "Under Contract" and can move on to the next step.
Step IV - Under Contract ... Now What
--------------------------------------------------
We've written the offer, it has been accepted, and we've deposited the earnest money. Now what? Now we go through the inspection and appraisal phase of the agreement. Next, we have the professional inspection. Here we will have five to ten business days (what ever is agreed upon in the purchase and sales agreement) as well, to have a certified home inspector go through your home to make sure there are no defects in the house. If we do come across anything, we will negotiate with the selling agent and the sellers as to how the repairs will be taken care of. Once this is done, our next contingency will be the financing. Since we will have already gotten the pre-approval, all you have to do is submit a formal application. It will usually takes about 2 weeks to get the full approval as the bank will want to do an appraisal of your new home to make sure it meets the amount you are asking for. Provided that you do not have a home to sell of your own, we have met all the contingencies and are almost home.
Now on to our next step...
Step V - Closing Day
--------------------------------------------------
We have fulfilled the promises that we made in the contract, (i.e. - received financing, inspection approval, appraisal, etc.). Now we come to the closing, where you take posession of your new home. Before we get there, I want to make you aware of what will be going on. First, the lender will be securing the funds for your loan. Second, all issues that we became aware of during the inspection will be taken care of. We will do a final walk-through the home before closing to ensure that all repairs are taken care of. Most importantly, the title company and your attorney will be reviewing the title of your new home to ensure that it is free of any past liens or encumbrances. When that is completed and the title is shown to be "free and clear," either the lender or the title company will prepare the closing statement for you. This is where you will find out how much money you will need to bring to the closing. In addition to the purchase price, loan origination, as well as other fees. Lenders are required by law to disclose all settlement costs related to a transaction to prevent abusive or hidden costs arising at the closing. All of this is done to provide for a smooth and clean closing.
Once we get to the closing, usually held at the title company's office, a closing attorney will be present to review all of the documents to ensure that everything matches up. You will sign your loan documents and the seller will sign the deed over to you, give you the keys, and Voila', you have your new home.
Now on to our next step...
Moving Day
Step VI - Moving Day
---------------------------------------------------
While we will have actually prepared for this before the closing, we obviously can not actually move until afterwards. First thing we will want to do is make sure all of your utilities will be up and running on the day you move in. I will provide the information for your local utility companies to you in your Buyers Package.
Moving can be a very stressful time, so please do not hesitate to call if you need anything. My goal is to make this as stress-free and exciting for you as possible
I hope you will enjoy our time together searching for the perfect home. And please if you know of anyone who is in need of my services, or would find my website useful, have them contact me or let me know and I can contact them.
I can reached at 352-427-3935