BUYING

10 Steps to Making Home Ownership a Reality

Available Mortgage Programs: An experienced mortgage company should be able to work with you one-on-one to determine exactly which mortgage programs will meet your individual needs and what you can qualify for based on your personal information. Applicants with higher credit ratings and/or higher levels of financial reserves generally receive more competitive mortgage rates. But with hundreds of available mortgage programs, there is usually one to meet the needs of almost any home buyer. For those with excellent credit, there may even be a way to get a mortgage with 0% down. Call me before contacting a lender. Every transaction is unique and I am trained to assess your needs and am able to refer you to a lender, who specializes in cases like yours.

Terms of the Mortgage: Different mortgage lenders have varying price structures that can affect the amount that you pay for your home. An annual percentage rate (APR) includes the actual interest rate on the loan, as well as certain fees and costs associated with the loan. Because a customer may be paying points and other closing costs, the APR disclosed may appear to be higher than the actual interest rate quoted for the loan. Not all lenders calculate APR identically; however, it does give customers a relatively fair method of comparing price on their potential loans.

Pre-Qualified Loan: Even before the house hunting begins, home buyers need to determine how much they can afford. Mortgage companies or other lending institutions provide pre-qualified loan commitments. Sellers won't take an offer unless the prospective buyer has some assurance of creditworthiness from a mortgage company. Shopping for a home with a pre-approved mortgage enables a customer to negotiate as a cash buyer and submit an offer on a home with confidence that the mortgage will be issued and the sale will be completed.

Research the Marketplace: Be sure to go online to check for listings, neighborhood information, current mortgage information and home ownership services. The right amount of research will help you to better understand the marketplace and homes available in your price range when you're ready to work with a real estate professional.

Buyer’s Checklist: To help make the home buying process a little easier, home buyers should create a checklist of the important features they want in a home. Location and the number of bedrooms and bathrooms are usually important, year built, square footage and lot size. Other important questions to answer: What will the commute to work be like? Are there shopping centers, parks, and schools located near the home?

Select a Realtor (Buyer’s Agent): A Realtor represents the buyer's interests and helps identify homes that are for sale and in the right price range. The realtor also can help with such tasks as writing contracts, negotiating the asking price, and closing the purchase.

Make an Offer: Once you find the right house, make an offer. Your Realtor will make sure that your offer is contingent on two items: FINANCING & HOME INSPECTION. You may rescind, if you're not able to get financing or the property doesn't pass the home inspection, and the owner can't come to terms about how to fix the problem. Be prepared for multiple-offers from other buyers and counter-offer from the seller. Make an "Earnest Money Deposit (EMD)", which is a check that you'll give your agent to indicate that you're serious about buying the house. "The Seller's Agent" determines the amount of the EMD check, The check will apply toward the sales price if the deal goes through; if not, you get it back, provided you've done your due diligence within the required time frame. All offers have an expiration time frame pre-written in the contract of 72 hours. If an offer is accepted, it goes to the contract phase. The "EMD" Check is cashed at this time and ESCROW is opened. Escrow is a NEUTRAL party that makes sure both seller and buyer perform their parts. Seller discloses the condition of the house and buyer at this point may negotiate repairs or walk away from the deal. Buyer only has 17 days to do their due diligence, from the time escrow was officially opened. If deadlines are exceeded by buyer, buyer risks losing part or all of the EMD.


Documents needed in order to submit an offer:

1. Offer (prepared by Buyer's Realtor).
2. Pre-Approved letter (or Pre-Qual letter. Lender provides it)
3. Proof Of Funds (Bank statements with seasoned funds - funds must be in the bank for at least two months.).
4. EMD Check (Earnest Money Deposit amount to be predetermine by Seller).


Home Inspection: Making an offer contingent on an inspection by a registered home inspector can save thousands of dollars by avoiding unseen problems. Inspectors will check the house for any structural damage. In the contract with the seller, it should state any necessary repairs that must be made before closing on the house. Prior to closing, walk through the house and check that such repairs have been completed.

Homeowners Insurance: Lenders require homeowner's insurance to protect the new home buyer's interests as well as their own. There are many providers so shop around for the best rates. Check with your car insurance company first. They may be able to offer you a bundle package deal.

The Closing: This is where the seller and buyer sign settlement-closing papers to transfer the ownership of the home and all transactions are finalized. Congratulations, you are now a homeowner!