Buying a Home
Things to Consider
How are you paying for the home?
How are you paying for the home?
When buying a home there are many things to consider. Here's a list of what you can expect during the home buying process.
- Decide to Buy a Home
- Find a Realtor
- Determine Your Budget
- Get pre-approved for a home loan, unless paying cash
- Start looking for homes
- Make a list of homes that meet your needs
- Tour available homes with your Realtor
- Your Realtor submits offers for you
- Both Realtors negotiate terms, if necessary
- Go Under Contract!
- Due Diligence starts: Inspections, Contracts, Earnest Money, Wire Transfers, Repairs, More Negotations (possibly)
- Clear to close
- Closing Day
- Home Ownership begins!
How are you paying for the home?
How are you paying for the home?
How are you paying for the home?
Understanding how you're going to purchase a home is critical to the process of buying a home. Each method has different costs associated.
Cash buyers must provide proof of funds typically within a few days of going under contract. Cash buyers typically have the lowest closing costs.
Borrowers must have a "Pre-Approval" or "Pre-Qualification" letter from a lender indicating how much the lender will loan the borrower and what type of loan it will be.
All loans will require some oversight from the lender, called an appraisal. Assuming the home passes the appraisal, there are generally (3) kinds of loans.
Conventional Loans have few, if any, restrictions on what can be purchased and usually requires a down payment of 5%-20% of the purchase price.
FHA & VA Loans are backed by the Federal Housing Authority & Veterans Administration.
FHA Loans require 3.5% down payment
VA Loans require 0% down payment.
Both FHA & VA Loans have some limitations on what can be purchased with these loans.
Searching for a home & repairs
Searching for a home & repairs
Searching for a home & repairs
Searching for a home can be exciting and fun. As buyers start touring homes, many start to dream of themselves living in each home and how they would use the space for their personal needs.
Once THE HOME is found, we will help balance the features and benefits of the property that make it so appealing to the buyer with the true condition of the home.
When we look past the new kitchen, or the remodeled bathrooms we must remember that there may be underlying concerns with the home that need to be acknowledged before getting too emotionally attached.
Together, we'll help identify any potential issues that will require repairs from a licensed contractor. Keep in mind that not all repairs are equal. Some may be a simple $50 item. Other repairs may be $500 or $5,000 or more! If after the potential repairs are discussed and we choose to proceed, we will incorporate the potential repair costs into the offer to purchase.
Keep in mind each house is unique. Each seller may or may not be willing to address the repairs identified. This is where negotiations are critical for success!
Closing on the home
Searching for a home & repairs
Searching for a home & repairs
After all of the inspections are done and negotations are complete, we enter into a period of finalizing the deal.
This period typically lasts about 7-14 days. The mortgage team is finalizing the loan. The closing attorney is assembling all of the various pieces of information: Insurance, Taxes, Earnest Money, Home Owners Association Dues, Loans, Fees, Commissions and more.
All of that is wrapped up into what we call "Closing Costs". This is the amount the buyer has to "bring to the table" in cash to close the sale. Those dollars are wired to the closing attorney's office and applied to the amount owed by the buyer.
While this is happening, the Seller is taking steps to move out of the house.
Typically, within the last 24 hours prior to closing, the buyers have a "final walk through" to confirm that the home is as expected BEFORE they sign all the paperwork to officially close on the house. If there are any issues, now is the time to make those issues known. If there are no issues, we go to the closing attorney's office, sign the contracts and get the keys to the home!
If you're ready to let us help you, click the link to get started with your own home search.