PREPARING TO BUY YOUR HOME
Buying a home, weather it is your first or if you have bought several previously, can be in intimidating process. It is best to do it with a professional who has the knowledge and skills to finalize your purchase and get you into the home of your dreams. Here are some steps to remember.
1. Selecting a Realtor: Talk to others who have recently bought or sold a house. Select a knowledgeable and professional realtor. I am a full time, professional career REALTOR with extensive market knowledge. I work together with my clients to find the right home for them!
2. Meeting your REALTOR and establishing a relationship: I will meet with you and discuss your needs and analyze your resources. Once we establish your needs, if needed, I will refer you to financial institutions where you can obtain information get the best financing available. As a buyer, getting pre-approved by a lender is a vital part of the process. You offer won’t be considered without a letter of pre-approval from a lender. Pre-approval will also determine the price point where we can begin the search for your new home..
3. Finding the right home for you!: I will show you homes based upon the criteria that we have established. The more precise and direct you are with me, the more successful our search will be and the quicker you’ll be getting into your new home!.
4. Determining the seller's motivation: Once we have found a home that you are interested in, I will do the necessary calls and research to help determine whether it is a good match with your needs and financing. Then I will structure an offer. Sadly, not every house on the market is really ready for a deal. This can be for a variety of reasons but why waste time on one which is just parked on the MLS and not really ready for a sale?
5. Writing the purchase offer: I will draft the "Purchase Agreement" for you, advising you on protective contingencies, customary practices, and local regulations. At this time you will need to provide an "earnest money" deposit, usually from 1"-3% of the purchase price. The deposit check is not cashed until your offer has been accepted by the seller and these funds are used to open the escrow.
6. Presenting the offer: I will present your offer to the seller’s agent. The sellers have three options: 1) they can accept your offer, 2) counter your offer, or 3) reject your offer. My knowledge of your needs and qualifications will enable me to represent you in the best way possible.
7. Responding to the seller: We will review the seller's response. My negotiating skills and knowledge will benefit you in reaching a final agreement. If requested by the seller, I will guide you through the process of submitted a counter offer.
8. Opening escrow: When the purchase agreement is accepted and signed, we will open escrow. At this time your earnest money will be deposited. The escrow company will receive, hold and disburse all funds associated with your transaction.
9. Securing financing: Once the escrow is opened, your lender will be involved. You will most likely need to meet with your lender. I will help you to be prepared. Your lender will ask many questions and will need many things from you very quickly. One of your most important functions at this time is to provide all necessary documents to the lender as we will be on a very strict timeline to close per the contract period as accepted by the seller. Your lender may ask you for certain things more than once during the process. Especially bank statements and pay stubs. It helps to know that this is usual and customary and required.
10. Managing your money: During this time, it is very important to keep a good record of the money that goes into and out of your checking and saving accounts. If there is a large item (which your lender will tell you the dollar amount) either deposited or withdrawn, you will need an explanation for it. Create a temporary log of these items in the event you need to explain a large deposit or withdrawal. Any large purchase, such as a new car may affect the funding for your new home as it will have an impact on your debt to income ratio. Have an ongoing dialogue with your lender so that they don't have any surprises at the time of closing
Once y ou’ve done all you’re supposed to do with the lending process, your home loan is still contingent on other factors. This is the “contingency period.” This is the time allowed, per your purchase agreement, to obtain and finalize financing, perform inspections, and satisfy any other contingencies to which your purchase is subject. Some things you are responsible for and some things the seller is responsible for. Typical contingencies include:
Approval of the Natural Hazard and Zone Disclosure
Approval of the Seller's Transfer Disclosure statement.
Approval of the Sellers Property Questionnaire
Approval of the Preliminary Report from the Title Company
Approval of all disclosures as required by law
Loan Approval which hinges upon appraisal value of the property
Physical inspections of the property usually including Termite/pest report
Seems like a lot? Throughout the entire process, I will be guiding and explaining each step to you. You will have many questions and you will see that I will never tire of your questions. In fact you can ask me any question as many times and in as many ways as you need to in order to fully understand what you question. Truly, there are no stupid questions, so feel free to ask anything at any time.
Give me a Call and let’s talk! 951-233-2010