If you are a first time home buyer in Crescent City, Del Norte County, California, there are three things you should do immediately:
1. Contact a Realtor(R) of your choice. If you don't have someone in mind, ask around, I'm sure your friends can recommend someone. You can also go on the Internet, look for Realtor(S) in your area, check out their websites and blogs and make up your own mind. Call the one you choose. Don't worry, it doesn't cost you anything! The Realtor(R) gets paid by commission out of the seller's proceeds of the home you purchase.BUT I HOPE YOU WILL CALL ME, HELLA ROTHWELL. I AM A REAL ESTATE BROKER RIGHT HERE IN CRESCENT CITY.
2. Get pre-qualified - and your #1, the Realtor(R) can recommend some that she has worked with in the past if you don't have one in mind. Don't be afraid to interview a couple, find out what they can do for you. They will talk you through the process. All of this won't take very long, a few days at most.
3. Down payment and closing costs: Based on the type of loan, you will have to show where this money will come from if you do not already have it in the bank. Some down payments are as little as 3.5% with some of the closing costs negotiated to be paid for by the seller.###
NOW THAT YOU ARE PRE-QUALIFIED, YOU KNOW HOW MUCH YOU CAN SPEND ON YOUR HOUSE.
After all, you don't want to look at homes that are too expensive. On the other hand, you might not spend as much as you are pre-qualified for. How much you eventually spend will depend on:
1. Which home appeals to you.
2. How high a mortgage you want to carry; how much it will cost you every month, for how long a term, at what interest rate, and how much you want to put as down payment. You may qualify for a loan with very little down. YOUR LENDER WILL GO OVER THIS WITH YOU.
NOW LET'S START LOOKING FOR YOUR HOME.
1. First, we search through the Multiple Listing Service to see what is available in your pricerange by clicking on Hella Rothwell's IDX/MLS Search Here you can input the $$$ amount, minimum to maximim, that you would like to spend, the number of rooms and bathrooms on your wishlist, and other criteria. This will give you an excellent idea of what's available.
2. Next, you and your Realtor(R) will start looking at homes that you have shown an interest in. After the first few, your Realtor(R) will get a "feel" what appeals to you, just by your comments.
3. When you find one that you feel can be your new home, you and your Realtor(R) sit down and discuss an offer. This offer will take into consideration:
A. How much you are willing to pay for the home, taking into consideration the parameters of your pre-qualification. This pre-qualification letter, by the way, will become part of the offer.
B. This offer will be sent by the Realtor(R) to the listing agent to present to his seller.
C. One of 3 things will happen: (1) The seller accepts the offer, and you open escrow with the signed contract, (2) The seller counter offers in which case you can accept the sellers terms or you make a counter offer to his, continuing until such a time as both you, the buyer and the seller agree to terms; or (3) The seller does not accept the offer. At this point, you could send in another offer closer to what the seller is looking for, or you start searching for another home.
Now that you are in escrow, time is of the essence to get several things done:
A. You will work with your lender to get pre-approved for this particular home; and the lender will send out an appraiser to value the property. The value may be higher or lower than your offer. If lower, you might try to negotiate a lower sales price with the seller. Or you might need to pay the difference in cash between the sales price and the appraised value.
B. Inspections need to be done, and disclosures received from the seller. If all of these are to your satisfaction, you will head towards the closing table.
USUALLY IT TAKES ABOUT 45 TO 60 DAYS TO GET YOU INTO YOUR NEW HOME!
HOPEFULLY YOU WILL CALL ME, AND I WILL HELP YOU PURCHASE YOUR FIRST HOME!!!
NOTE: The above scenario does not include REOs or Short Sales! Other issues come into play then.
***OFFERS ARE COMPLICATED AND CAN INCLUDE, AMONGST MANY OTHER THINGS, ASKING THE SELLER TO PAY FOR YOUR CLOSING COSTS!!!
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