Get Prequalified - Getting
prequalified starts with talking to a lender (call or email us for a
suggestion). A lender will look at your credit scores, income, revolving
debts, and
how much money you have to put up for a down payment on the home. Once
they look at your financial situation they will determine the best type
of loan for you(VA, FHA, Conventional, Homepath) and what kind of
payment would be comfortable with. The reason to get prequalified is to
determine how much of a loan you can get that you are comfortable with
to ultimately decide what price range you will be looking to purchase
Make your wish list - Think
of how many bedrooms you are going to want and how many bathrooms. What
kind of lifestyle do you want? A condominium will offer shared ammentities
(pool, bbq area, clubhouse etc.,) with low to no exterior maintenance
as where a single family dwelling offers more privacy and space, but
more exterior maintenance.
Call your Realtor - We
are experts in the area and now that you have been prequalified and
made your wish list we are ready to start looking at homes on the
market.
Select your home - No
home is going to be absolutely perfect. Think of how long you plan on
living in the home and figure out how it will best suit your families
activities along with the layout of the home. Cosmetics can always be
fixed and it doesn't have to be pricey to get it looking fabulous.
Make an offer - Your
offer will depend on the current market situation. If there is a lot of
inventory (homes on the market for sale) you can be more aggressive
with your offer than if there is low inventory. In a time where there is
low inventory your offer may need to be at list price or sometimes even
over depending if its priced at market value or not. Your Realtor will
be able to guage and give you more guidance when it comes to writing
your offer.
Open Escrow - Once
your offer is accepted you will enter escrow. Escrow is a trusted
independent third party that acts as the mediator of the transaction.
Escrow makes sure that the obligations of the contract are dealt with
and the monies are distributed properly
Order a home inspection
- A home inspection is VERY important. This process occurs after your
offer has been accepted by the seller and it is now time to look deeper
into the home. You hire a third-party professional to give you their
opinion of the integrity of the home, large or small repairs that may
need to be done, code violations, age of the systems/appliances in
place, and things that may need to be fixed soon. This gives you an idea
of what is going to be involved in owning this home. Almost EVERY home
that is not going to be purchased brand new is going to have issues.
Don't let this scare you, it is part of owning a home.
Order an appraisal -
The lender you are working with will order an appraisal on your behalf
through the bank you are obtaining your loan from. The bank appraisal
will determine the market value of the home. If the home does not
appraise for the purchase price, the bank will refuse to make the loan
unless you can renegotiate the purchase price with the seller.
Remove contingencies
- A contingency is something that may or may not take place. For
example: in the home buying process you have a contingency period to
inspect the home with a professional home inspector. If you find a major
problem with the property you may back out of the deal, but if you want
to continue with the purchase of the property you must remove your home
inspection contingency. There are several other contingencies such as
appraisal contingency and loan contingency.
Final walk through -Your
final walk through usually takes place 5 days before you close the
deal and the house is yours. This walk through is important because you
want to make sure the home is in the same condition that you purchased
it. There have been times in a home purchase where the home had been
flooded because of a leak. By doing the final walk through you can write
in your final walk through form anything that was not the same when you
wrote the agreement.
Go to closing - Closing! At closing all funds for the loan as well as your down payment go into escrow and are dispursed accordingly. Escrow then sends the deed down to the county recorder's office and the deed is then transferred into the new home buyer's name. You are now a home owner and you get your keys to the new place!
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