Steps to Buying A Home in Todays Market:
1. The first step in purchasing a new home must positively be speaking with a lender. Consulting with a lender is free and may only take a few minutes. It can be done over the phone or if you prefer in person. He will ask a series of questions to get you prequalified for your loan. You can ask him questions about property taxes, impound accounts, monthly payments and many other topics. Getting prequalified is extremely important as it tells you and your realtor things such as your correct price range and whether you need to ask for closing costs when you make an offer on a home. A letter from this lender is also required to be sent in with the offer in today's market, Basically, you cannot put an offer on a property without one.
2. The next key step in your purchase process should be deciding on the size and location of your home. Your dream home may be right around the corner! You must take into consideration the pricerange given to you by the lender in deciding both of these important things. How many bedrooms do you absolutely have to have? How many bathrooms? One story or two, a pool? The list is endless. Then, decide on the city you wish to be in. Does the city have homes like you want, or are they too expensive for your budget? Is there a neighboring city that is as good with possibly better homes for less money? Everyone wants a good deal!
3. After you've decided how large and where, the next step would be to look at some homes on the computer. If you like, I can send you send updates with homes just like you pictured when decided the size and area. The updates can be sent daily, or as many updates as you want during the week. This is done through the MLS. Or, if you prefer, on my website, on the listing page, you can search for yourself by clicking the "Create Your Own Search" tab. During this time, we will discuss foreclosures and short sales. I will educate you on what this means to your purchase process and timeline.
4. Finally, after all that has been done, the part you've all been waiting for! Previewing Homes! After you've chosen some listings that caught your attention, we will meet and take a look at them. Looking at homes can be time consuming and confusing, but at the same time exciting and filled with endless possibilities. I try to limit the amount of homes we see in a day to ten or less. This is so you don't lose track of which homes actually are a possibility for you and which had the best features for you. I also recommend that you bring a digital camera so you have photos to refer back to. I will provide a flyer with each property that has space for you to take notes as well.
5. Wow, we have now found your dream home and it's time to make that offer. Together we will look at comparable properties and those prices. We will look at the difference between those other homes and the one you wish to purchase; does it have upgrades, is it a fixer, etc. I will also discuss the type of sale with you; foreclosures and short sales have different trends than a regular standard sale. Once we have determined the price we wish to offer, I will prepare the residential Purchase Agreement for you and get it signed. The offer will then be presented to the listing agent along with a copy of your 3% deposit check (the balance of your deposit and possibly closing costs will be due before escrow can close), your pre-approval letter from your lender, and your fico scores from your credit report.
6. Typically a standard sale will have counter offers. The seller will usually come back with a slightly higher price and it's up to you whether you accept that or "counter back". This process can go back and forth, but ultimately yoiu get to decide how much you are willing to pay and whether you agree to any of the sellers other terms.
7. Your offer has been accepted! Now the clock starts ticking. Your deposit check will be submitted to the escrow company within three days of the acceptance. We also have certain time periods to get things done, such as the inspection and request for repairs, the loan approval, etc. All of the time periods re outlined in writing in your original offer contract, the Residential Purchase Agreement. I am in charge of making sure we stay on that schedule or asking for time extensions if necessary. During this time, there will also be quite a bit of paperwork to be signed by both yoiu and the seller. I work closely with the other agent to make sure that all signatures are done in a timely manner.
8. About one week before closing we will do the following:
9. You've done your inspections, signed your loan documents and it's time to close! Closing occurs when the loan monies have been paid out and the title or deed has been recorded with the appropriate county. After I receive confirmation that this has occured, I will personally pick up the keys from the sellers or their agent and deliver them to you.
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