12 Steps To Buying Your Home

So you want to buy a home.  Even if you have no idea where to start, with the right Realtor the process can be   simple. Maybe even enjoyable! 

I will break down the steps so that you know what to expect.  Along the way I will put in some descriptions to help.

You And Your Realtor:

The Initial Interview-  The initial interview is where I meet with clients for the first time face to face.  There are many items that help me help you.

• Pre-Qualify-You can save time with this if you have a preferred bank or a lender that has been referred to you.  When it comes time to write an offer the seller will want to know that you are qualified to buy.
• Determine your needs and wants- Looking at homes on the internet is fantastic! However, you may find that once you get inside the home you feel quite different about it.  As an experienced Professional I have come to learn floorplans and often time have the chance to show homes multiple times. Getting to know your expectations is important.
• Printout Possible Homes-After viewing homes online we can print them out. Heck! Let's even go see a few! 

Consult A Loan Officer-Once you find a Loan Officer that you would like to work with you should meet them too. Here is a list of items you may need eventually.  It may be best to gather them now.

• W-2's for the past 2 years for everyone that you wish to be on the mortgage.
• It is possible, especially if you are self employed, that you will need signed tax returns for the past 2 years also.
• Paycheck stubs for the past 30 days to verify income
• 3 Months of Bank Statements for ALL accounts
• Copies of cancelled Rent/Mortgage checks for 12 months
• Make a list of all of your debts with account #, minimum payment due and approximate balance owed
• Some Loan Officers charge you up front for the credit check
• Some Loan Officers charge you up front for the Appraisal. The appraisal is basically what the bank thinks the home is worth and costs generally between $325 and $400

House Hunting-Now for the fun Part!  After our first meeting I will have a good idea of what you are looking for.  You will have a better idea as well once you see a few homes.  The House Hunting part may take a while depending on how many homes are available in the area you are looking.

It is important to keep in mind average utility costs, price of homeowner's insurance and property taxes during this part.  They could all significantly affect the price of the home you purchase.

Don't be afraid to ask your Realtor to look at several homes.  We want you to be happy when you move in and have no regrets!

Write an Offer-As a Realtor I make sure to take plenty of time going over the entire contract and all of the addenda. It is important to understand what you are agreeing to. You will need anywhere from $500 up to 1% of the negotiated price for earnest money. Yes, they will cash the check.

Negotiations-There are many points to negotiate. Not just price. Here are a few:

• Earnest Money
• Closing Date
• Title Company
• Closing Costs
• Home Service Contract
• Non-Realty Items i.e. Refrigerator, Washer, Dryer

Once the negotiations are agreeable to everyone the offer will be signed and it will then be an executed contract.

Inspections-I highly recommend you being at the inspections.  With a good inspector you will know the house inside and out, all of the flaws and extra features.

• Structural and Mechanical inspection goes over electrical, plumbing, roofing, about anything you can think of with the house itself. The price varies on size.
• Wood Destroying Insects-If the home has termites you want to know now so the sellers can treat for  them and repair any damage if any.
• Depending on what these reports find you may need to hire additional inspections. A couple being Foundation and a/c and heat.

Repairs-Inspection reports have a way of making a home sound like it is falling down which is a great reason to attend the inspection.  Some items are more important than others.  You will need to figure out what repairs you wish to ask to be completed by the seller.  These repairs will then be negotiated.

Mortgage Company-By now your lender will have a copy of the contract and other items. Now they can work on the loan itself.

• Your lender will order an appraisal of the property. I recommend doing this after repairs according to this list. If the inspection goes awry, you will have spent money on a home you won't buy now.
• Survey-This is will show easements, building lines and anything else that pertains to the lot
• Your mortgage company will finish up the details of the loan and draw up all documents for closing.

Closing Scheduled-Realtors typically schedule the closing.

• HUD Statement-this is the settlement statement that shows how much money you will need to bring to closing. It is important to have this ahead of time as you will need a cashiers check to bring to closing.

Final Walk-Thru-Absolutely!  Once the home is empty you will see all of the imperfections that were once covered by furniture and other items.

• Were all of the repairs completed to your satisfaction?
• Is there any damage from the owners moving out that need to be addressed prior to closing?
• Your Realtor will be with you to answer questions

Closing!-Time to celebrate!  After you sign all of your mortgage documents of course.  By the time you leave the title company, you will be a proud homeowner!

Congratulations! 

Choosing the right Realtor to represent you makes this process a lot more smooth and soon you will be opening the Doors To Your Dreams!