The Buying Process
Believe it or not, buying a house should be and can be FUN! It all starts by finding the right agent. As your agent, my first priority is getting to know you and what you are looking for in a new home. Before we even begin the search process, I will take time to get to know what is important to you so that I can better assist you in narrowing down your options. Then the search process begins. Below are the steps we will take to start you down the path to your new perfect home!
Decide What You Want:
Before you start looking, make a list of what you want and assign each item a priority. Some areas to consider are the location, type of home, and age of the home.
Know What You Can Afford:
● Most loans require a downpayment. The amount varies, but 20% of the purchase price is typical. If you’re a first-time buyer or fall below certain income thresholds, you may qualify for affordable housing programs. Generally, a higher down payment means better loan terms and a lower interest expense on the mortgage.
● Qualifying for a loan: A lender will determine how much he thinks you can afford based on your income, employment history, education, assets (e.g., bank account balances, other property, insurance policies, pension funds), and debt. Check your credit report before the lender does to clear up any problems.
● Your comfort level: You don’t have to spend $200,000 on a home just because the lender says you can afford a $200,000 home. Do some math and determine what you’re comfortable spending.
Make an Offer:
You’ve figured out your home-search criteria and what you can afford. Now let’s go find a house and make an offer! This is where our relationship and communication become an invaluable part of this process. Knowing your wants and needs I will help you prepare a contract, negotiate, juggle inspections and option periods, and help carry your transaction to the finish line!
Secure Financing:
Unless you’re paying cash for the home, you’ll need a loan. Keep in mind the true price of financing goes beyond the interest rate alone. Consider items such as points, total lender fees, term of the loan, and penalties for early payment. The lender will likely require an appraisal to verify that the home is worth the cost of the loan as well as a physical survey. Repairs may be required. Insurance must be purchased. All these conditions and others must be satisfied before a transaction can close.
Close the Deal:
After weeks or even months of research and decision-making, you close the transaction, usually at the title company’s office. The title agent will ask you to sign many, many documents and will explain each one. You’ll present a cashier’s check or a wire to the seller, sign another document that itemizes closing costs (the lender will have given you an estimate in advance), and pay your share of the closing costs. In return, you will receive a deed, transferring ownership rights to you. Congratulations on your new home!
