The Buying Process
Purchasing a Home is a huge decision for most people. For that reason, I want to share a few basic suggestions so you can plan and prepare so you know what to expect.
1. Select a Realtor: Yes, I am a Realtor so I am partial to using a Realtor in searching and purchasing a home. The reason are many, but I will run down a short list here. a.) a good to great Realtor will assist you in making intelligent decisions for steps 2 & 3 below. Many good Realtors will assist you and know all the various loan programs that are best suited to your circumstances and can refer you to several great mortgage lenders and banks. A good honest Realtor will also advice you on the pluses and minuses of neighborhoods, schools, deferred maintenance that you may not notice and much more. They can also set you up with powerful search technologies and let you in on a multitude of homes at your convenience, conduct tough negotiations to get you the best possible price, recommend inspections and more. You want an experienced and knowledgeable Realtor that knows the market and can spot a great value that will fit your wants and needs. By the way, your Realtors services are paid by the Seller so make sure to take advantage of the services that a Realtor can provide.
2. Obtain a pre-approval for the mortgage: It is very important that before you look at any homes, you contact a lender and find out the loan amount you qualify for and what type of financing is best for you. Most Realtors will require a lender letter when an offer is submitted to make sure the buyers qualify before they take the house off the market. Again, most Realtors can help can recommend a lender that can help you get a competitive rate and terms.
3. Define Your Wants and Needs in a Home: Now that you know the price range of the home you can afford, You can now start to plan what you need and what you want in a home. Determine your needs first such as: number of bedrooms, commute drive time to work, schools if you have children, square footage, lot size, etc…Then outline your wants assuming you can satisfy your needs in your price range. Typical wants may be: acreage, newer versus older, 2 car garage versus 3 car garage, etc…
4. The Home Search Process: After you selected your Realtor as outlined above, the best and most efficient way to begin the home search process is to have your Realtor set you on a custom computerized assisted home search that will scan the entire market for homes everyday seeking out the best homes that meet your basic needs. After you preview the home online, your Realtor will set up various appointments to preview the neighborhood and inspect the inside of these selected homes.
5. Purchase Offer and Negotiations: Here is where a good Realtor can save you lots of money. Your agent will ensure that the written contract is filled out correctly and will perform a analysis of the neighborhood to make sure you get the best possible price. Make sure your agent is representing you as a buyer’s agent so they can represent your best interests. After the offer is presented, the Seller has one of three choices: reject the offer, accept the offer as written, or counter the offer. If there is a counter-offer, here are some of the typical things that you and your Realtor may have to negotiate: price, possession, repairs, personal property included, etc…
6. Due Diligence and Inspections: After your offer has been accepted, your agent will oversee all the details such as financing, inspections, appraisal, title work. Some of the above have timeframes such as inspection completion, formal mortgage application, etc. Your agent’s experience in this area will be invaluable in making sure that everything is completed on time and in a professional manner.
7. Closing and Possession: As the closing date draws near, your Realtor will contact the Title Company to make sure all the necessary documents are being prepared and are complete and accurate and delivered in a timely manner. Once the lender documents have been delivered to the Title Company, they will prepare the HUD (closing statement) that shows the amount of money that will be needed. Sellers sometimes will pay a portion of the buyer’s closing costs known as concessions which would of been written in the original Purchase Agreement. The HUD will reflect these agreed upon costs. If possession occurs at time of “Closing” then ownership of the property is transferred to the buyer immediately, utilities would of already been transferred from the seller to the buyer in advance to prevent disruption of service. The sellers will bring all keys and have all their personal possessions removed by close other than what was outlined in the Purchase Agreement. If the buyer has agreed to allow the seller to occupy the property for an alloted amount of time, then utilities will be called a few days before move-out date and seller and buyer exchange phone numbers to pick up keys, etc…Sometimes the buyer will charge the seller an occupancy fee that is also outlined on the Purchase Agreement. Usually the occupancy fee is determined by what the buyer’s per diem interest per day on their mortgage. In this marketplace, the average possession time is 30 days after close if the homeowner was still living in the home.
If you or someone you know have any further questions about purchasing a home or are interested in purchasing a home, you can EMail me at: jaynesellsyourhouse@gmail.com or call me at 616-291-1673.
