Steps to Home Ownership
Getting Ready To Buy
Preparing to buy a home can be exciting and terrifying at the same time. I’m ready to lead you in the right direction toward the home of your dreams.
You first may want to ask yourself:
1. What are you looking for in a new home?
2. How much cash do you have available and willing to invest in your purchase?
3. Have you talked with a lender regarding qualifying and obtaining a mortgage?
You may want to make a list or brainstorm about the features and amenities that you find most appealing.
Starting the Loan Process
It is important as a buyer that you establish some kind of financing before you begin to look at homes.
The pre-approval process is when a lender looks at all of your finances and determines the amount of money you could afford for a mortgage.
In order to get pre-approved for a loan, you need to contact a lender. If you don’t have a lender, I can help you help you find a lender that you feel comfortable with, and that offers programs best-suited to your needs. There several programs for first time home buyers offering 0 downpayment or low dowmpayment options.
After you meet with them they will be able to determine price range and right loan for you. They will send me a pre-approval letter – Then you're ready to start your home search!!
Click Here To Get Pre-Approved
Starting Your Search
Now it is time to start the exciting search for homes!
You may want to narrow down your search by asking yourself the following questions:
1. Where do I want to live?
2. How many bedrooms and bathrooms do I want?
3. What style of house am I attracted to?
4. What amenities do I desire (ex. basement, fenced-in yard, garage etc.)?
Searching for a home has become much easier in the recent years. We now have the Internet as a powerful home finding tool! You can customize and save your search on Property Watch, download MY AWESOME APP that works off GPS!
Finding Your New Home
Beginning the search for your new home can be a great feeling. It is important that you directly communicate with me about the desires you have for your new home.
You may want to first begin by making a list of the features that are most important in your pursuit of finding a home.
These could be:
Click Here To Start Your Search
Making an Offer on a Home
Selecting a home should be relatively easy once a home falls somewhere in your criteria.
You will want to inform me what you like about the house and make a list of your likes and dislikes of the property. Though you will most likely have done this already in a general sense, it is important to do it again for specific homes you have in interest in.
In the negotiation process you may accept the seller's asking price or make a different offer. It is not uncommon to go back and forth a few times.
The earnest money deposit is an important part of the home buying process. It tells the seller you’re a committed buyer, and it helps fund your down payment. Without earnest money, buyers could make offers on many homes, essentially taking them off the market until they decided which one they liked best. Sellers rarely accept offers without deposits. Typical Earnest Deposit is between $500-$1000. Assuming that all goes well and your offer is accepted by the seller, the earnest money will go toward the down payment and closing costs. In the event that something goes wrong with financing or with your inspections, you are covered in our contract contingencies and will get your earnest deposit back.
Apart from being a fancy word, contingencies are very important in the home buying and selling process. It is said that contingencies are “a buyer’s best friend,” but both the buyer and seller can benefit from contingencies. Contingencies are important because they can protect you against risk. A contingency is a provision in a home sale contract that requires certain things be done before the agreement is considered binding. There are many kinds of contingencies. Here are two of the most popular types:
· Financing Contingency: Conditions the sale on the buyer successfully obtaining the financing needed to purchase the house. With this contingency in place, if a buyer is unable to obtain a mortgage, they can walk away from the deal.
· Inspection Contingency: Conditions the sale on the completion of a satisfactory home inspection. If a buyer has included this contingency in the offer and they aren’t satisfied with the home inspection report, and unable to come to an agreement with the sellers, they can walk away.
Once you have an accepted contract on your new home you will have a period of time (typically 10 days) to complete to complete your inspection know as the contingency period.
Whole House Inspections are not required yet highly recommended. A licensed home inspector of your choice will perform a visual inspection of your property from top to bottom, including all the main systems. Typical price range is between $300 and $600. In the event that something comes back in the report that is unsatisfactory to you, we are able to re-negotiate price, work with the sellers for repair or repair credit or you can walk away from the contract with no loss to you.
Termite Inspections are required if there is financing involved at the buyers expense typically cost is $45-$85.
Lead Based Paint Inspections are recommended on any home built prior to 1978 and required by some types of financing.
Radon Inspections are not required but available to you if you would like. Cost varies. I can provide you with contact information from local companies.
If you haven’t already now it’s time for the completion of a loan application and specific financial documents including pay stubs, rental checks and/or tax returns, your lender or loan officer will walk you through every step.
If you are a first time home buyer be sure to ask about specific programs available to you.
You work hard to have a home; homeowners insurance protects you and your family from someone or something taking it all away.
There are many different forms of insurance:
Title Insurance - Protects you in the event that the title on your property has a lien, unpaid taxes, or other legalities that would make it invalid.
Homeowners' Insurance - Protects your home from fire, theft and other liable coverage.
Flood Insurance - Protects your home from flood damage.
Home Warranty - Offers buyers and sellers the peace of mind that should anything unexpected happen (due to normal, everyday wear and tear) of the home's appliances, heating, air conditioning, plumbing, and electrical systems, it will be repaired (or replaced in some cases). Home Warranties are available at a onetime charge and provide protection for 1 year. In most cases they renewable.
The closing process is always changing.
Typically closings usually occur within 30-45 days after a contract is signed by both parties. This mainly depends on the buyer's financing availability, successful home inspection completion, and various lender conditions (ex. title search, title insurance, termite inspections, surveys and appraisals).
Prior to closing, it is important for the buyer to take a final walk through the property to make sure the property's condition as not changed.
Once “clear to close” is issued. You will receive a settlement statement. This statement summarizes all the fees and charges that both the homebuyer and seller face during the settlement process of a housing transaction. Other things that are listed on the statement include the property's purchase, price the size of the homebuyer's mortgage loan, any peroration of pre-paid items such as taxes and HOAs, and any points or similar deductions that the homebuyer has incurred.