Buying A Home

Basic Steps To Your New Home

Buying property should be a methodical process. It involves certain steps in order to make sure the purchase a success. When approached with a clear understanding , and a plan in mind, it can be enjoyable. The following are typical steps the buyer must take to achieve their goals:

1. These days, it is a must to check with a mortgage company, or bank to pre-qualify. This helps to determine the amount of property you can afford before you start looking for one. Most companies offer you a locked in rate for a pre-approved loan for a specific number of days. Get pre-approved because you usually only have to pay for the credit check and it is often a requirement by the seller in later negotiations.

2. You should select a real estate professional to help with the property search process. Your agent should be able to narrow your search to the properties that fit your purchase price, your wants and needs, and the locations you desire.

3. Once you find a property you are interested in, you will need to make a written offer to purchase. The offer to purchase should be written by your real estate agent. You need to have someone who is helping you look after your interest in the transaction! Negotiations over the price, terms and conditions of the offer to purchase are done in this phase. It is important to make sure that you have adequately written contingencies to protect your interests and cover all important areas such as your ability to obtain financing, results of an inspection, closing date, clear title, etc. Many legal battles have been fought over earnest money. Have a professional explain your rights in the contract before signing.

Some sellers offer a home warranty package. This an insurance policy that usually covers replacement or repair in case of major appliance failure and most structural failures for a stated period of time. If not already offered, you could include it in your purchase and sale agreement.

4. When the offer is accepted by the seller, a contract is created. The next step is to take a copy of the offer to your loan officer. They will help you to move to the next stage in completing the financing for the purchase.

5. Next have the home inspected by a professional building inspector. The inspection costs usually run about $300 and should be one of the contingencies in your offer. Most contracts give you a set amount of time in which you must give a written response to the seller. You may request items which you want corrected, it is most likely negotiable who pays for repairs.

6. As you satisfy the contingencies in your offer to purchase, you may have to remove them through an amendment to the contract. Consult your realtor for specifics. It is a good idea to make a calendar of deadlines upon mutual acceptance of an offer. A missed deadline could cost thousands if major repairs are not spotted in time.

7. Once all of the contingencies have been resolved, you are ready to close on your loan and purchase the property. The date is usually specified in the offer to purchase. An escrow agent usually handles the closing of transactions and notifies you when your signature, or other information is required. Once again, call your agent or the escrow officer a few days in advance of the closing date to insure all is on schedule.

As long as all parties are cooperative, buying a home with me as your agent will be smooth sailing.