Your first home purchase can seem like an overwhelming task but it is really not that hard. Here we go.
Step 1 - Research professional Realtors in the area you would like to find a home. That is a pretty easy task now with the internet. Just Google your City, State, Real Estate and then begin to check out their websites. You will want to look for several items on the website:
a) A good Realtor website will have an excellent search engine capabilities for you to search all the homes listed on the MLS - not just that Realtors' listings. It should have mapping and ease of use!
b) Info about the agent - not just that he or she is a nice person and the "best" agent - but info about their accomplishments, education, and experience. Even time as a Realtor can be a poor indicator as their spouse may bring home the paycheck and they only work "part time". You want a Realtor who is full time, does lots of closings every year, and has the education and experience to protect your interests.
Step 2 - Let your Realtor help you select a local Mortgage professional who can help you get pre-qualified for a loan.
a) I said local Mortgage professional for a reason. You want someone local for several reasons but most importantly because you and your Realtor will be able to hold their feet to the fire. It is hard to hold someone off in cyber space accountable. Someone who never has to see you or the Realtor again is much more likely to over promise and under deliver. In addition the local lender will know all the parties to the transaction like the attorney, appraiser, and processors. They are much more likely to be able to call up the appraiser and say hey "Bob" could you go ahead and get the appraisal done for us because we are in a time crunch.
b) Use a major bank Mortgage department for your loan rather than a loan broker. A broker is really just a middle man. At one time a broker could sometimes find a "special" loan product to fit you but not anymore. Everyone basically has the same loan products so I recommend going with a major player like Wachovia, Wells Fargo, GMAC, or Suntrust in our area as they have the resources to close your loan fast and on time. You will be dealing with the people making the loan and not a middle man. Ask your Realtor who to use - they should know who can close a loan smoothly.
Step 3 - Go find a house! Use your Realtors home search website to find homes you might like and show these to your Realtor. This will help him/her understand the type of home you like but don't fall in love with these because they may look different when you get there. Let your Realtor suggest other possibilities that they think may fit you as well. It is a collaborative effort. Keep an open mind! Only so many homes will fit your criteria and price range - so once you establish which ones those are - it is simply a matter of choosing the one that fits you the best.
Step 4 - When you find your home - make an offer! Have your Realtor pull up area comparables and talk about negotiating strategies and what things are important to you like time frame, seller paid closing costs, home warranties, and other items that are important to you in the purchase.
Step 5 - Contract to Close - If you have chosen a good Realtor and Mortgage team this portion should go smoothly. Most of the horror stories you hear are because the client chose some fly by night mortgage broker who couldn't deliver what he promised. Things to remember here are:
a) Go ahead and get the lender all the documentation they ask for as soon as possible. They cannot submit your loan without all documentation.
b) Cooperate with all inspections and other items in a timely manner. Real Estate contracts are time sensitive.
Step 6 - Close and move in your new home - Closing is simply a 1 hour process at the lawyers office where you sign all documents to take responsibility for paying your mortgage loan and the seller gives you good title to the house. The lawyer is there to make sure everything is done in proper and legal manner so that everyones interests are protected and you receive clear title to the home.
Congratulations! You are new homeowner!
Comments(3)