So you’ve decided to buy a home….

There are many reasons and advantages to buy a home. The main one being it is a great tax benefit and also it is the “American Dream.” Homeownership is very rewarding and can, at times, be very difficult. That is why you’re planning and budgeting before you purchase is very important and will help you in being ready for the new home. Feel free to look through the tools on my website for more calculators and budget planners. Keep in mind, this is an overview of the process and there are steps that you will be in your unique situation that will require more documents and addenda that are not mentioned in this overview……

Budgeting and Planning….

Figure out what your monthly income is and gather at least 3 months of current pay stub, last year’s W2, and your credit card balances and debts. Get a budget of all of your monthly bills. Once you have these items together, you will call a Mortgage Broker of your choice to meet with you and go over what you will be qualified for and what you can afford. If you do not know any mortgage brokers, I will be glad to refer you to three or four that you can interview. Once you meet with the Loan Officer you will start the process of pre-qualification. They will need you to fill out a loan application and look over your papers. After they have looked over your information they will advise you on what you are pre-qualified to purchase. You will want to get a Pre-Qualification letter from the Loan Officer stating what you are able to purchase. Once you have received the letter, you will meet with me.

Our first meeting….

We will meet after you have a pre-qualification letter, so we have an idea of what price homes you will be able to afford. I will then have you sign a buyer’s representation agreement which will enable me to represent you and not the seller. If this agreement is not signed, a REALTOR’s ethical duties are actually to the seller of the home.  I will then begin preparing a profile for you including wants and needs that you have on your home.  I will also include the number of  bedrooms you will need, how many bathrooms, will you need a home office, a game room, or media room, or any other items you would like to have in your new home. After we have made a profile for you, I will then run a search on the Multiple Listings Service and locate several homes which meet your needs and are in your budget. I will then preview the homes ahead of time to gather more info on the property and the area.

Our first day looking….

We will meet at a time that is convenient for your family at the office and go over what properties I have located for you. We will go over what each home has and which area it is in. I will also provide you with local info on each home including the school district, tax info, and area attractions. We will then drive to each home and figure out which home is best suited for your needs. During this process you will discover what else you like and dislike on each home, and will help narrow your results for future outings. It may take several weeks of looking to find the right home for your needs. I will be there for you during the whole process to answer any questions and help in locating your new home.

After we have found the perfect home for you and your family, we will write an offer on it. I will go over the entire contract with you so you are very informed, and you are comfortable with the decision. I will collect the Earnest Money check from you to deposit with the title company, and the option check (generally from $100-150) and then fax over the contract  to the seller’s agent or the builder and then it is time to wait. We will usually have a couple of things happen after they seller receives the offer; they will accept the terms and conditions that will put forth in the contract, they will counter-offer the offer you submitted, or they will send a letter of request to send in a new offer. If they counter-offer, you will have to decide if the counter-offer is acceptable and sign off on the changes or counter-offer back to them with another offer. If they accept the offer you submitted then the process of purchasing begins.

Option Period…          

In the contract, you will generally have an option period of around 10 days that will give you time to have inspections done on the home. At this time you will need to complete the rest of the documentation required from the Mortgage Loan Officer in a prompt fashion. You will generally have 20 days to obtain full loan approval if there is a requirement for it in the contract according to the terms of the Third Party Financing Addendum. I recommend having pest inspections, foundation engineers, a certified home inspection and any other inspections that would be related to the property during that time. Once your inspector has given his report on the property, any items that need to be negotiated into the contract to be repaired or replaced should be done during that period. When the seller accepts the amendment to complete the necessary repairs then the contract moves forward. You will then need to start going through the checklists that I provide you with in order to close and move in.

Closing Day is around the corner           …..

When the financing is all in line and the title company has all of the documentation they need we will schedule a closing date and time. On the day of closing you will need to bring a cashier’s check or cash for the down payment and the closing costs, whatever is required from your lender. You will also receive a HUD-1 a day or two before closing, which will show all of the fees charged to you on your purchase in an organized breakdown. You will also receive the total amount that you will need to bring to the title company the day of closing.

Closing Day is here….

On the day of Closing on your new home, you will need to schedule around 1-2 hours for the closing. You will sign a multitude of papers; I will be there as well as an Escrow officer to answer any questions you may have about the paperwork. After the closing you will wait to hear from the lender or the escrow officer about when the funding takes place. Once your lender and the seller are funded and dispersed from the funds of the sale, you will be able to take possession of your new home. The only thing that may delay the moving date is if you have a Seller’s Temporary Residential Lease included in your purchase contract. If that is on your contract, there will be a specified number of days in which the buyer will remain in the home after closing and funding.

Congratulations!!!! You are a home owner!!!