1. Find the Right Agent~ Buying a home is one of the largest decisions you will ever make. It is essential to have an experienced agent in your corner, always looking out for our best interest. A listing agent has an allegiance to their Sellers' and their goal is to get top dollar for the home.
A Buyer's agent main responsibility is to look after your best interests and get you the best deal. We provide information relating to value. market conditions, obvious defects or red flags with a home. We negotiate repairs and pricing on your behalf as we use our knowledge and experience to navigate you thru all the real estate paperwork. A Buyer's agent should have knowledge of the area where you want to buy, have great Google and Zillow reviews, and have excellent communication skills plus getting back to you in a timely manner.
2. Prepare your Finances~ Check your credit score. A mortgage requires a good credit score. Paying down credit card balances, and regularly paying your bills will help you raise your credit score. Do not apply for a new credit card or get a car loan while waiting for loan approval. When applying for a loan, the lender will want pay stubs, and 2 years of tax returns.
3. Get Pre Approved~ Just guessing how much home you can afford, is not wise. Pre approval, is when you are pre approved for a certain amount. Prequalified is not enough. Also take into consideration that even though you have been pre approved for a certain amount it still may not be in your best interest to spend that kind of money. What would happen if you got ill, or there was a death?
A down payment is your contribution toward the purchase of the home. This is different that earnest money. Earnest money states you earnestly want to buy a home and it is given to listing agent upon presenting the offer, or within 3 days. The earnest money will go towards the overall purchase price.
Down payments vary depending on loan and can range from 0% down (VA, first time home buyer) to 20% down.
4. Make an Offer~ When you find the right home your agent will present an offer, with preapproval letter, price, contingencies, earnest money, and closing deadline. Be prepared that a Seller may counter your offer in which you may accept or counter.
5. Executed Contract~ Once an offer is accepted and signed by both parties the contract is given to the title company to do a complete search on the property. This will discover any tax/loan liens, easements, covenants or any document recorded. The earnest money check will be given to the title company,
6. Order an Inspection~ During the inspection period, this is your time to do your homework. Hire an inspector, check with utility companies for average utility bills, and learn as much as you can on the home. After a thorough inspection is done, your agent and you will decide if you want to negotiate the offer. There may be radon, mold, roof or numerous other problems that you want fixed prior to purchasing the home, or money given to you by the Seller to fix.
7. Schedule your Move~ If renting give 30 day notice, contact moving company, start packing/decluttering, and keep track of expenses (they may be tax deductible) You may want to donate to a thrift store or have a garage sale. Get home insurance on new home, notify utilities of old home and new, forward mail. and notify friends and family.
8. Closing Day~ Final step in your home buying process. Before heading to the closing table, do a walk thru of the home, checking to see if inspection issues were fixed if any, and Seller is completely moved out. We will check with contract to make sure that any agreed upon items were done, ie. cleaning of home, windows, and carpet.
A few days prior to closing, you will receive a settlement statement, showing the exact amount that you need to bring to closing in a cashiers check or wire. Your driver's license is needed too. Be prepared that closing takes about 1 hour and to sign lots of documents. The keys to your new home will be given to you once the paperwork is recorded. Congratulations on you new home!
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