10 Steps to Home Ownership

Buying a home is one of the most significant purchases you can make in a lifetime. It is essential to have an experienced agent in your corner, always looking out for your best interest that is knowledgeable about the local market and it’s ever changing inventory. A buyer agent’s fiduciary responsibility is to represent the buyer and to ensure that their interests are protected. After all, a seller has someone in their corner. A listing agent has an allegiance to the seller. Their goal is to get the seller top dollar for their home. There is incredible value in having someone working for YOUR best interests when buying a home.

Mortgage lenders recommend you do not stretch yourself beyond buying a home that is more than 3 to 5 times your annual household income. If you are not purchasing a home with cash, you will need a mortgage pre-approval provided by your mortgage lender. A lender will work with you to get a loan that meets your needs. Some buyers are concerned with keeping their monthly payments as low as possible, others want to make sure that their monthly payments never increase. In order to make your dream of buying a home a reality, you will need to save cash for your down payment, earnest money, closing costs, and home inspection. Don’t forget you will have taxes and insurance on top of your base mortgage payment!

• A Down Payment is typically between 3.5% and 20% of the purchase price.

• Earnest money is a money deposit you put down to show you’re serious about purchasing a home. It’s also known as a good faith deposit.

• Closing Costs for the buyer run between 2% & 5% of the loan amount.

• A home inspection can cost approximately $450 and up.

• Depending on your loan program and down payment amount, you may pay mortgage insurance. Homeowner's insurance is also required.

Study your credit report. Make note of any errors you see and talk to your lender about them. Compile necessary documents, including pay stubs, bank statements, and past tax returns. Determine how much of a payment you are comfortable with.

Once you know what you can afford and your debt ratio, we can go about getting pre-approval.

Credit score and financial documents in hand, you’re ready to start researching options for your home loan.

Take advantage of online aids. Find out if you qualify for a special loan, such as a VA, FHA, or HUD home buying program. Request quotes from multiple lenders and comparison shop for loans. You can comparison shop from a diverse group of reputable lenders in all 50 states, ranging from small, regional providers to larger, well-known brands such as Citi and Bank of America. You’ll get a personalized quote and can read lender reviews and ratings to help gain insights into which lender is right for you.

Make sure you get that mortgage preapproval letter — it’ll make you a more competitive buyer.

Note: Being pre-approved, unlike being pre-qualified, means you've actually been approved by a lender for a specific loan amount. You will need to provide documented financial information (income, statements, assets, debt & credit reports etc.) to be reviewed & verified by the lender.

Make a short list of the things you need to have in the house to be happy, and things you are willing to compromise on. Ask yourself how many bedrooms and bathrooms you'll need and get an idea of how much space you desire. How big do you want the kitchen to be? Do you need lots of closets and cabinet space? Do you need a big yard for your kids and/or pets to play in?

Once you've made a list of your must-haves, don't forget to think about the kind of neighborhood amenities you want (like access to the lake, resorts, hotspots), the length of your commute to and from work, and the convenience of local shopping. Take into account your safety concerns as well as how good the rate of home appreciation is in the area.

Your finances are in order, your ideal neighborhoods identified — next up is finding that perfect property and making a competitive offer. More importantly, one that is accepted over other offers. As more and more people looking to become homeowners, it’s important to prepare yourself for the mortgage process, home search, bidding wars, and what you’ll do next if you do not get the home of your dreams. We will assess any property’s market value with a CMA and determine what it's worth in the current market and then move forward with a Purchase Agreement Sales Contract.

A good rule of thumb to get your offer accepted in today’s market is to start strong. An earnest money deposit signals how serious a buyer you are. Express your willingness to work with the sellers’ timetable to go to closing. Connect with the seller. Limit contingencies. I will be there to facilitate the Offer & Negotiation Process. Ultimately we want an ideal home for you that fits your needs and your budget.

Once the offer has been signed and accepted, and then communicated back to you (the buyer), we will be under contract and escrow will open. Make sure earnest money deposit is delivered in the format and timeline agreed upon in sales contract. Be sure to review the title commitment once received from the title company.

Let your lender know that you are under contract and make sure to give them all the requested documentation on time. You will need to secure a home loan, send proof to your lender, and shop for home insurance options. We will request a list of what conveys with the property, schedule a home inspection, negotiate repairs, order an appraisal, input/neutralize any contingencies, schedule your closing, certify funds (don’t make any major purchases!), solidify both contract effective and allowable move-in dates.

During this time you will stay in close contact with your agent, lender, and title company.

Must be done with 17 days from date of Escrow Opening.

A home inspection can help identify deficiencies in a home you’re considering purchasing. If the inspection reveals problems are at work or repairs are needed, you may be able to negotiate with the seller to fix those issues through a Request for Repairs.

During the inspection period, we will schedule an inspection with a reputable home inspector to do a thorough investigation of the home. Once this is complete, the inspector will provide us with a list of findings.

Here are your options after a home inspection reveals problems:

Ask the seller to make the repairs themselves

Ask for credits toward your closing costs

Ask the seller to reduce the sales price to make up for the repairs

Back out of the transaction (if you have an inspection contingency in place)

Move forward with the deal

In order to negotiate for repairs or credits, start by getting an estimate from a local contractor or construction professional for how much the repairs will cost. If you’re working with a real estate agent, he or she should handle the negotiations on your behalf. Make sure your agent has a copy of the inspection report to use as leverage when working with the listing agent and their sellers.

Must be done with 17 days from date of Escrow Opening.

When your home is under contract, you can’t move forward with the sale until an appraisal is done on your home. The outcome can affect whether or not you make it to closing and whether the price in the offer is the price you’ll end up with on settlement day. I go the extra mile during this phase of being under contract, meeting the appraiser at your home, and creating an information packet that helps the appraiser have all the information he or she needs for a favorable outcome. You don’t want the appraised value of your home to come in below the price you’ve negotiated with the buyer, so I have a very specific process for making sure that doesn’t happen!

• Confirm that all contingencies are resolved.

• Transfer funds for closing, finalize mortgage. Don’t make any major purchases!

• Schedule the final property walk-through to make sure everything is in order and ready for you to purchase the home.

• Designate a safe, dedicated space to save your final paperwork and store them with your other important documents.

• Create an inventory of anything valuable that you plan to move, get packing materials, declutter, clean. Pack essentials separately for the first week in your new home.

• Set up your utilities to be transferred and turned on before closing (water, gas, electric, cable etc.)

• Get estimates from moving companies. schedule and reserve a moving company on your moving date.

• Change your address through USPS, your bank, subscriptions and other instances.

CLOSING DAY

Closing is when you receive your new home keys! You'll need to cover the cost of closing and the down payment. Typically, closing takes four to six weeks and during this time, purchase funds are held in escrow where your money is held safe until the transaction is complete. You will be connecting with escrow to wire down payment funds and closing costs.

FINAL WALK THROUGH

We will do a final walk through the home within 24 hours of closing to check the property’s condition. This final inspection takes about an hour. We will make sure any repair work that the seller agreed to make has been done.

We will be sure to:

• Sign closing disclosure, promissory note, and go over all other documentation including Title Transfer and Deed Delivery.

• Make sure all appliances are working properly.

• Run the water in all the faucets, flush toilets, and check for any possible leaks, run the garbage disposal and exhaust fans.

• Open and close garage doors with opener.

RECEIVE YOUR KEYS

Congratulations! It was a lot of hard work but you are now officially home owners!! Time to throw a party and get to know your new neighbors!