1. Finances. There are multiple types of financing. Talking to a trusted loan officer that can help educate you and and get you pre-approved. I have several wonderful teams that I work with. Need to repair credit? Discuss a FHA loan? Contact me and I can point you in the right direction

 

Why do you need to be Pre-Approved and when should do it? Getting pre-approved for a mortgage shows the sellers that you are willing and able to buy a home. Many real estate agents want potential clients to be pre-approved before looking at houses. This may be frustrating for you, however, the pre-approval plays a vital role in the process. When you find the right home and wish to make an offer, most agents expect to see the pre-approval letter attached to the offer. This shows that you are ready and able to move forward. The pre-approval also gives you insight to the price range and what type of loan you qualify for. If you are considering buying a come, start contacting lends now to start the pre-approval process, or contact me and I can send you some recommendations.

 

2. Finding and hiring an agent. Are you able to look online at homes you may like? Yes, and you should, but, you should select an agent that is going to work for you. The right agent will listen to your wants and needs and do the legwork of scouring the internet to help you find the right home. Also, having your own agent means you have someone that is interested in protecting you. Calling someone of a sign or clicking an add will get you someone, but it may not get you the right one. Take the time to find the person will to work for you! Did I mention that a buyers agent if free to you? *In most situations buyer agent’s commission is paid by the seller. Why not use this service?!

 

3. Time to look at houses. Now that you have selected and hired an agent. The have helped you find homes that you are interested in. This is the fun and exciting part. You should have a list of needs and wants for your new potential home. A well as a list of the top 5 must-haves. Spend lots of time looking at homes on-line to get a feel for the different styles and what is on the market. Make it your goal to look at 10 homes or less before selecting one. This may sound counter intuitive, this is a huge step after, we have to see everything on the market right? Wrong. Obviously some people only look at a few before finding the right one and some look at much more. However, if you and your agent share the vision of what you want, the process should be easier so make sure you communicate your ideas to your agent. Another reason you don’t want to look at a TON of houses in person is it can become overwhelming. Eventually, all of the houses blend together and you can’t remember which one was you favorite or which one had the fireplace. That can make this exciting process feel overwhelming and I want to keep if fun for you and your family.

 

4. “I think I found the one”. Now what? If you think you have found the home you want to live in, I recommend getting serious and submitting an offer. Chances are if you saw it today and loved it, but need time to think, there is someone out that that saw it yesterday and thought it over and is ready to buy it today. In today’s market, it can be common to lose out on a house. It doesn’t feel great to miss out on what you thought was the one. In reality, there is no real way to guarantee that won’t happen, but timing is definitely one thing you can put on your side.

 

5. We did it! Offer has been submitted! Congratulations. Waiting for a response can sometimes feel like an eternity, but you made the leap so hang in there. Several different scenarios can play out here. Your offer can get accepted, the sellers can counter-offer (there could be multiple-offers or they could counter your offer), or they can reject your offer.

 

Counter-offer – This situation can happen if there are multiple offers submitted and they give everyone a chance to submit their highest offer or they counter your offer by renegotiating some of the terms in your contract (price, closing date, occupancy days, etc.)

 

6. Offer was accepted! Once an offer has been accepted, there are several contingencies that must be handled before the home becomes yours.

 

 A.) Home Inspection: They can cost anywhere from $200 and beyond, but I recommend getting one and finding someone that is throughout and trusted. The inspection is usually done with the first 10 days of accepting your offer. This gives you the opportunity to learn about the home and possible renegotiate for repairs you weren’t aware of.

 B.) Appraisal: Typically appraisals cost between $300 and $500. The appraiser is sent out by the bank to find the value of your future home in order to get the loan funded for your mortgage. If the house appraises for more than what the selling price of the home is, you don’t have to pay more, but you can be happy because that means you already have equity in your home! If it appraises lower than the selling price of the home, several things can happen:

1. If the appraisal was written into the contract as a contingency, you can withdraw your offer without losing your EMD because if did not appraise at agreed upon offer.

2.  Renegotiate selling price of home, if seller is willing

3.  Pay the difference out of pocket

*Your Realtor will help you decide which option is best for your situation.

   C.) Getting the loan approved: During this process, you communicate frequently with your lender to get your file prepared to go to underwriting. This can be a frustrating experience because you may have to update or resubmit documents. The best advice I can give is to simply do what they ask and do it in a timely manner. Your loan cannot get approved until all of your financial paperwork is current and in order. I tell my clients in the beginning (and during the entire process), keep your credit the same way as the day your got approved. That means no new credit cards or accounts, no job changes, or financial investments. If you really want that house, put your finances on a diet until closing day!

 

7. Closing day! Once your loan is approved and all documents have been reviewed. Closing day will be setup. This is the day you have been waiting for. Lots of paperwork to sign and unless you and the sellers have agreed on occupancy days (Sellers remain in home after closing and pay a set amount of money set in an escrow account), then you receive the keys this day. I usually recommend that my clients do not give their notice to current landlord until closing day has been set, to help avoid any future housing issues if for some reason closing has to be pushed back.

 

       Things to bring to closing:

1.  Your smile (cheesy, I know, but hey you’re buying a house!)

2. Photo I.D.

3. Certified check for closing costs (this amount will be given to you before closing)

4. Homeowners Insurance policy.

 

 

If you have any questions or if you are ready to get started, call or text me.

313-712-1334