Home Buyer Checklist
Buying a home can be both exciting and stressful. It doesn't matter if it's your first or next home there's so many choice and details. So it's important to find a Real Estate Agent who can help you navigate through the process. The Buyer's Agent can recommend Lenders, Home Inspectors, Various Contractors as well as help you find a home, negotiate terms and so much more. So what are some of the items that need to be done before, during and after to become a homeowner.
Get Pre-Approved with a Mortgage Lender
Before beginning the home buying process it is recommended to get pre-approved with a Mortgage Lender. For this you may use a Mortgage Broker or a Bank or Credit Union. Part of the pre-approval process your mortgage professional will pull your credit scores, check your credit history, calculate your debt-to-income ration, gather income, financial and person information. This information will determine what types of mortgage loans you qualify for and amount of money you are able to spend for a home.
Searching for a Home
Once you have been pre-approved for a home loan the search begins. Your Real Estate Agent will discuss your housing needs (the location, size, number of bedrooms, features and more). With this information your Buyer's Agent can set you up on an automatic home search through the local Multiple Listing Service or MLS. This automatic search will send notifications of homes within your search via email. When a home of interest comes on the market your Agent will be able to set up an appointment to view the home. Once a home has been identified it's time to make an offer.
Making an Offer
Once you have identified a home you would like to purchase your Buyer's Agent can advise on local market conditions and can make an offer. This offer will include the purchase price, earnest money, home warranty, financing terms, closing date and contingencies. This offer to purchase is given to the Seller's Agent who will present it to the home seller. If the seller accepts and signs the offer to purchase it becomes a contract. However the seller may counter the offer and make changes in the purchase price or terms.
Once the terms are agreed by both the Buyer and Seller come to an agreement the offer to purchase becomes a contract. The next step is to have the home inspected by a Licensed Home Inspector The home inspection is done during the option period and allows the Buyer to counter-offer on needed repairs or terminate the contract if an agreement cannot be made.
About two weeks after the home has been under contract the next step is the home appraisal. The home appraisal is ordered by your lender. The appraisal process compares the home to similar homes that have recently sold. With this information the Appraiser will determine the home's value. If the home does not appraise for the sales price and is short the buyer can renegotiate the purchase price or terminate the contract.
During this time the Title Company is doing a title search which examines any claims or incumbrances on the property or defects on the title that would prevent the seller from conveying the property to the title.
Once the title company, lender are satisfied with the property meets their criteria it's time for closing. At the closing the title person will have the needed documents from various legal documents, your mortgage and required payments made by a cashiers check that include your down payment, closing costs, prepaid interest, taxes and insurance. Once the home has been funded it becomes property of the buyer. For more information about buying a home contact Allen Deaver of Asset Realty today.