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Buying
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BUYING
Thinking about buying? Whether you are buying a first or a third home, the process is a time-consuming venture and an emotional one. We’ve compiled this checklist to help you become a savvy buyer and find your ideal home.
1. Create Your Wish List
Before you starting house-hunting, develop a NEEDS vs. WANTS list. Everyone has a picture of an ideal home. This would include all the features you not only need, but have long desired. However, when it comes time to buying a home, the desires cost more. While it’s nice to think about having a beautifully landscaped backyard, or a solarium, perhaps even some built-in appliances, these are usually considered luxury items, which can add considerably to the price of your home. More details
2. Verify Your financial health.
Before you go shopping and apply for a home loan, it’s a smart idea to obtain a copy of your credit report from the three major credit bureaus and review the information. If there are errors that need to be addressed, it’s easier to address them before you have found a house.
3. Obtain Pre-approval.
Visit your financial or lending institution prior to home buying. Quickly, you’ll know the amount of mortgage you’ll receive. Be sure to get a mortgage commitment in writing. Most important, sellers will know that you are a serious prospect. Depending upon market conditions, a seller may lean towards an unconditional offer. You’ll have less negotiating power if you have to wait for mortgage approval. Banks and financial institutions have developed many programs especially for homebuyers, be that first-time buyers or those with equity in their homes. When you review your needs and objectives with a lending officer, you’ll be one step closer to purchasing your home. More details
4. Find the Right Realtor
Buying a home is a complicated process, with many people involved. From choosing the right mortgage, to finding a home inspector, to viewing available properties, there are many steps involved for even the hardiest person. With a professional realtor on your side, you’ll have access to these services, already in place, and highly recommended. Traditionally, real estate agents represent the sellers in a transaction. Find and verify a buyer’s agent, as a seller’s agent is less likely to negotiate the best price or contingencies for you. A buyer’s agent’s job and fiduciary responsibility is to you, the buyer. More details
5. Conduct Due Diligence
Although you will have enlisted the expertise and assistance of a realtor, you still need to conduct your own research and become an informed buyer.
- Location, Location, Location
- Ask for a written CMA
- Investigate the seller’s situation
- Insist on a written disclosure of all known defects
- Pay attention to "Red Flags"
More details
6. Make an Offer
When you’re ready to buy, move fairly quickly. That’s because good properties usually sell fast. This is especially true when there is a shortage of homes available. When you work with a realtor, you have access to the most current technology. As part of the MLS network,
a realtor has access to properties within hours of when they are listed. Technology works to your advantage. When a realtor knows your needs, they will notify you when properties that meet your criteria become available. Many realtors now have personalized websites which allow you to sign on a client, and receive notification of these listings via email. You save time and effort, and you can view only those homes that come closest to your needs. More details
7. Final checklist
Before you sign any document, be sure the property you are considering is free of all encumbrances. As a part of his or her services, your realtor can supply you with a copy of the title and updated survey to ensure there are no liens, debts, undisclosed owners, leases or easements against the title.
8. Escrow
Escrow begins when you have placed a deposit on the house and the seller has accepted your offer. Escrow ends when your purchase is registered in your county and you become the official owner of the house. Your realtor will help you select a title company and an escrow holder whose job is to act as a neutral third party that will help you through the purchasing process.
9. Conduct a Home Inspection
Once your offer is accepted, we recommend that you hire a home inspector. A professional home inspection is a wise investment. Protect yourself and do not skip this step. A home inspection is an inexpensive way to gain peace of mind, and guard your pocket book. A proper inspection will cover all areas of the house including foundation, electrical, heating, plumbing, floors, walls, ceilings, attic, roof, siding and trim, porches, patios, decks, garage and drainage. A professional inspector can give you an objective view of the property, with a written report, indicating the present condition and items that will need repair.
10. Appraisal & Close
Once you have applied for a loan, the lender will send an appraiser to visit the property. As for a copy of your appraisal. Verify with your lender within two weeks of closing to make sure the loan will be approved and processed timely. Your realtor will help you finalize the purchasing process. More details
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