Time To Buy!
A Digital Home Buyers Guide
1. Lets Work Together (1 Week)
Benefits of working with a Realtor and having buyer agency:
Purchasing a home is one of largest investments you will probably ever make. Throughout the buying process you'll face many decisions such as cost, location, finance, and insurance. Professional REALTORS® belong to the National Association of REALTORS® and conform to its strict Code of Ethics along with state and local regulations. Here is what REALTOR® will do for you:
- Educate your decision making
- Evaluate homes in the Multiple Listing Service
- Recognize and suggest easy fixes and repairs
- Supply information on taxes, costs, zoning restrictions, etc.
- Stay objective and not emotional to point out advantages and disadvantages
- Advise you on financial and personal data you'll need for a loan application
- Familiarize you with the closing process
- THERE IS NO COST TO YOU AS A BUYER TO TAKE ADVANTAGE OF YOUR REALTORS KNOWLEDGE AND EXPERTISE
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2. Qualifying to Buy (1 Week)
How Do I Get Pre-Approved to Buy?
After you have completed a loan application with your selected lender, the lender will begin the process of assembling and verifying all the information required for the underwriter to make the decision. This step requires patience!
Five Major Components of Loan Processing:
- Credit Check
- Verification of Income and Employment
- Verification of Deposit
- Verification of Housing Expenses/Rent
What are Points, Prepaids, and Closing Costs?
Points are a prepaid to a lender to decrease the interest rate charged for the loan. One point equals one percent.
Prepaids include items such as homeowners insurance, real estate taxes, and private mortgage insurance.
Closing costs are items such as loan origination fees, appraisals, title company fees, and processing fees.
Why Should a Seller Pay These Fees?
By paying some or all of these fees a seller opens the door to a greater number of buyers and improves the opportunity to make a sale.
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3. Learning the Lingo
Weighing Knowledge and Education:
REALTORS® try to be knowledgeable and a good teacher for their clients. While your REALTOR® aims to keep things as streamline and easy for you some terminology used throughout the buying process may trip you up. Familiarize yourself in our Free Glossary.
4. Tips To Finding the Perfect Home (Varies)
How do I know I've found the one?
Finding and buying a home can both me stressful and exciting all at the same time. It quite an adventure, and you show know it's not always as easy as seeing three houses and picking one like they do on HGTV. Here are some helpful tips to keep in mind when considering what home is right for you:
- Make a list of items that are the most important to you
- Determine what school district you'd like to be in
- Identify what style of home best fits your needs
- Determine when you'd like to move in
- How many bedrooms and bathrooms do you need?
- Does your significant other need a garage to spend some alone time in?
- Determine how far from work you'd be comfortable commuting
- When is the best time to look at homes?
Here are some additional questions to really challenge your home search:
- If we found the right home for you today, would there be anything keeping you from buying it?
- Who else has to approve the home for you to purchase it?
- How much work are you willing to put into a home? Or are you looking for move in ready?
5. Writing A Competitive Offer
What does it take to have my offer considered?
Writing your initial offer is a huge step in the home buying process. Here are some things to consider and things to expect to see if your offer.
- Who will be legally purchasing the home?
- How much are you willing to pay?
- Expect to supply earnest money right away
- Are you pre-approved for the purchase amount?
- What items in the house are staying/going?
- How will real estate taxes be worked into the purchase price?
- How will special assessments be worked into the purchase price?
- How quickly would you like to/can you close on the property?
- Don't forget you're granted a final walk-through before closing
- Will you want a Home Protection Plan?
- Are you familiar with Megan's Law?
- Does the home contain lead based paint?
- Are you going to do a physical home inspection?
- Do you have a home to sell prior to buying a new home?
- Would you like there to be special conditions to your offer? i.e. Paid off closing costs, prepaids, points, etc.
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6. What Happens After My Offer is Accepted?
Congratulations your competitive offer has been accepted!
Between the time the contract is signed and the closing, the buyers and sellers will do the following:
- If not pre-approved, the buyer applies for financing with a lender
- A home appraisal takes place to confirm that the value of the property is in line with the loan amount
- The buyer orders a professional home inspection
- The buyers financing is approved
- The REALTORS® through the buyers lender establish the date and place for closing
- The buyers and sellers contact utility companies to transfer services
- The closing takes place at either a title company or a bank
7. Sealing the Deal at Closing (~6 Weeks)
GIVE ME THE KEYS ALREADY!
The closing is the final step in obtaining your home. Closing costs usually include but are not limited to fees for surveys, publics record updates, appraisal, legal document work, title search, credit report, homeowners/flood insurance, loan origination fee, title insurance and more.
Before you close:
- Schedule a Final Walk-through
- Review all documents and your purchase agreement
- Know how much money -if any- you'll need to bring to closing
- Contact the utility company to hae services switched to your name
At the closing:
- Have a cashiers check or wire transfer for funds needed to close ($50,000 or greater is three days certified funds)
- Bring a photo ID
- Bring a flashy keychain to put your new set of house keys on
8. How Does My Realtor Get Paid?
Wait - did I overlook how I reimburse my REALTOR® for their hard work?
NOPE! REALTORS® are independent contractors and get paid on commission after closing of the transaction. All commissions are initially paid to the real estate firm by the seller. The real estate firm pays the REALTOR® a percentage of the total commissions received at closing.
This guide has been put together by a REALTOR® and does not guarantee accuracy on transactions NOT facilitated by an Alliance Real Estate Inc. Appointed Agent. If you have questions or concerns about your own transaction please reach out to your REALTOR® or this sites administrator.