Want to know where to begin the home buying process? This guide will show you the high-level process for buying a home.
Whether you are moving across town or across the country the real estate market is a big place, and an experienced Agent can help you navigate it.
Tips for choosing a real estate agent:
Do Your Due Diligence
Research real estate agents online, read reviews, and get recommendations from family and friends. Most importantly, test drive them. Have them take you to a few homes and see what kind of value and skills they bring to the table.
Are they educating you on the process of buying a home and making sure you’re fully informed? Are they available to answer your questions and do they call you back in a timely manner? Do you feel your concerns are being heard?
Not all agents are created equal. Do not sign any Agreements unless you are certain they really are a great fit for you.Your lender will check your financial standing to determine how much you can borrow, how much you can afford, and which loans might be right for you.
Getting pre-approved for a home loan can be a daunting experience.
First, find a mortgage lender that you’re comfortable with. If needed, your Agent will be happy to provide a referral.
Applying for a mortgage requires a written application and supporting documentation; it can be a slightly intimidating process and there are a few things you should be ready for when meeting with your mortgage lender:
They Will Check Your Fico Score
Knowing your credit score will give lenders an inside look at your credit habits and history and will help them decide if you’re a good candidate for a loan.
Credit scores are ranked on a scale of 300-850 and the higher the better.
They Will Check Your Employment History
Lenders ask for a list of your past employers, how long you’ve been with your current employer, and what your annual salary or take-home pay is. They want to make sure you consistently earn money, with no major gaps in income, and can make regular mortgage payments.
They Will Check Your Assets and Debts
You’ll need 2 months of bank statements, your driver’s license, and pay stubs.
When it comes to house hunting online, there are lots of things a potential buyer can do to get a feel for a property by simply utilizing the tools that are available online. Your agent is a great resource to lean on and will send you listings that match what you’re looking for via the MLS. Your agent will also email you property information on homes you’ve favorited.
Create a list of your non-negotiables, such as monthly payment, location, style of home, etc. Once you’ve seen a few homes, re-examine your list and see if there’s anything you’d like to change.
Create a list of 10 things you want in a home. Keep in mind, these are not needs/must-haves. These are things that would be nice to have but aren’t deal-breakers if the home doesn’t have it.
If a property sweeps you off your feet, we’ll schedule an in-person showing.
Things to bring to a showing includes:
If you find a home that hits 70% (or 7 out of the 10) things on your “wants” list and hits all of your non-negotiables, write an offer on it!
When making an offer, keep your eyes on the payment amount – not the purchase price. After all, you’ll be paying the payment monthly, not the purchase price.
If your offer is accepted, have the home inspected. Your agent can recommend a Home Inspector, however, you’ll need to do on your own and do your due diligence when choosing an Inspector.
Make sure you read and understand the role a Truth in Sale of Housing (TISH) Inspection plays in your transaction.
Once the inspection is done, you can submit and negotiate requests for repairs, upgrades, or a reduction in the price of the home to allow you to make those repairs.
When negotiations are complete, the listing becomes “pending” and an appraisal is ordered by your lender, if applicable. If the appraisal results are good, your lender goes to work. Be sure to listen to your lender’s requests.
Review your loan estimate and closing disclosure. Make sure everything makes sense and bring up any discrepancies with your lender.
Within 48 hours of closing, do a 15-20 minute final walk-through of the property (this can be done the night before of day of closing) to verify that the work and inspection requests that were needed have been completed.
At the closing, the deed is transferred, the final loan application is signed, checks are disbursed.
You’ll need to bring your driver’s license (not expired) and a cashier’s check/wire/checkbook.
Lastly, get your keys, take a celebratory closing picture, and celebrate!
You’ll need to switch over your utilities and get ready to move. Preparing to move will include:
It’s time to move into your house, and start making yourself at home!
If you enjoyed working with your agent, be sure to leave them a review on Google to let other home buyers and sellers know about your experience!
We pride ourselves in providing personalized solutions that bring our clients closer to their dream properties and enhance their long-term wealth.