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Home Buying Steps |
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GOING SHOPPING FOR A HOME
This is what you’ve been waiting for. Don’t forget to bring your “wish list” plus a notepad and paper with you. You will get to see first-hand what homes are currently available that meet the criteria you have requested. Appointments will be made ahead of time so it is extremely important to be on time. We will look at an average of 5-10 homes depending upon our time constraints. We can usually accomplish this in about 3-4 hours or less. We will most likely spend more time at some homes than at others. This is normal. We will be scrutinizing each home’s features, condition, and location. Sometimes, we may go back the same day to see a particular home that interests you a second time. It’s hard to predict just how long it will take to find a home that’s right for you! Sometimes, it happens the very first day out so don’t be surprised. You will “know” instinctively if it’s the right one!
MAKING AN OFFER
Once you have found a home that you would like to buy, an offer is put together that is given to the seller’s agent for presenting to the seller. Your offer will contain the price that you’re willing to pay, the date you would like to settle on the property, and all property inclusions that stay with the property like the refrigerator, stove, washer, dryer, draperies and curtains, etc. It will also state the type of financing that you’re obtaining, the amount of your earnest money deposit, any seller concessions, and any inspection contingencies that you may have. Included with your offer is the lender pre-qualify or approval letter. Don’t forget to bring your checkbook. An earnest money deposit, sometimes called a good faith deposit is necessary and is generally $1,000 every $100,000 of sales price. So a home in the $200,000 range will need a $2,000 deposit. This is credited to you at time of settlement and will be deducted off the amount of money that you will need. When the offer is finalized, it will be given to the seller’s agent for presentation to the seller. The seller will either accept your offer as written, counter your offer with changes, or reject your offer. We will negotiate the offer on your behalf following your instructions so it is important to be readily available. If your offer is accepted by the seller, your offer now becomes a fully ratified Contract of Sale. If your offer is rejected or neither party can come to an agreement, we continue your home search.
CHOOSING A MORTGAGE
Once we have a ratified Contract of Sale, it is time to finalize the loan paperwork with the lender. This generally needs to be done immediately or within a few days. There are numerous loan programs available ranging from the standard FHA, VA or 5%, 10%, 20% down conventional loans to 100% financing that require no down payment. The payback period can range from 10 to 30 or 40 years and can include principal and interest on the money borrowed or could be interest only payments. Interest rates can either be fixed or adjustable or a combination of both. We will assist you in making the decision to choose the loan program tailored to your needs. The lender will order an independent appraisal of the property’s value.
COMPLETING THE HOME INSPECTIONS
If your offer contained a provision for any home inspections, they are generally done within a specific time frame, usually within 7-10 days of contract ratification. Inspections could include a general home inspection, lead-based paint, radon, termite, mold, well, and septic. We will assist you in scheduling these inspections, attending the inspections with you, and if there are any deficiencies found help you to negotiate their repair by the seller. If we are not able to successfully negotiate the desired repairs, you are not required to continue with the purchase, and the Contract of Sale will become null and void and any earnest money deposit will be refunded back to you. However, the cost of the inspection is not refundable but this is small in the scheme of things since it helped to uncover property deficiencies.
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