First Time Homebuyers:
So, you are thinking of buying your first home. You are probably excited, nervous, over-whelmed, and maybe a little confused over all the steps in the Buying Process. You are not alone, everyone when buying their first home regardless of age feels much the same way. This section will break down the buying process into smaller, more understandable steps to relieve some stress and maybe make it a little fun.
Find an agent that is dedicated to you:
You should feel like your agent is looking out for you. At first it may be a little difficult to do, but in the course of talking, emails, and meeting you will feel it. If you do not feel the commitment- find another agent!
Get pre-approved.
What is it?
"Pre-approval" means you have met with a loan officer, your credit files have been reviewed and the loan officer believes you can readily qualify for a given loan amount with one or more specific mortgage programs. Based on this information, the lender will provide a pre approval letter, which shows your borrowing power. This is important so you and your agent know how much of a home to look for. It can be heartbreaking to find your dream home and then find out it is out of your reach.
Make a list:
Make a list of the important things you are looking for in a home, such as location, size, and features (# bedrooms, garage, basement, etc). Then place a 1 - 10 alongside of each so that your agent will know which items are a necessity and which items you can be flexible on.
Look at homes:
Your agent will send you a list of homes based on your criteria. After you pick some homes to see (try to narrow it to about 5-6 for a tour) call your agent to set it up. Always bring a pen and a tablet incase there are no flyers to take from a house. You should write on either the flyer or notepad items you do and don't like for each (some people take photos) so that you can remember which home had which feature. If you like more then one home after a couple tours take a second look to determine which one best suits you.
Make an offer:
Once you have chosen a home it is time to make the offer. Ask your agent for a list of other homes in the area that are active, pending, and recently sold. Go over these thoroughly with your agent looking at things like price, days on market, features, inclusions, and any settlement help given. Based off these things you and your agent will get a feel as to what to offer. If your offer is not full price you might get a counter-offer. Keep trying to negioate a win-win situation, where the buyer and seller both feel that they have given a little.
Inspections & Contingencies:
Once you have a fully signed contract it is time to move onto your inspections and contigencies. Ask your agent if they would recommend anyone for the termite, radon, home inspection, and mortgage (they will probably know a few of each). After each inspections if there are no problems that contigency will be removed. If you have anything come up in the inspections go over them with your agent and decide which items you need to have corrected. An addendum will be made requesting the seller to correct these issues. The seller can accept to do this and you will have the opportunity to see them finished after completetion, or they can decline to correct any issues and you will have to decide if it is still worth proceeding with the sale or if you should look at more homes. The mortgage will require you to bring in documentation for the lender to secure financing.
Closing:
You will choose an attorny for settlement and your agent will get them the contract and other documents needed for closing. Usually the day of or night before you will do your final walk through the property to see if its condition has not materially changed. At settlement the sellers and you will sign all documents transferring title of the property. Seller will give you the keys to your new home.
