The Buying Process in a Nutshell
GET A CRYSTAL-CLEAR PICTURE OF YOUR FINANCES
Buying a home should be an exciting and gratifying experience. After all you are going to make one of the biggest purchases of your life. However, before you start surfing the web in search of your dream home, get a crystal-clear picture of your finances. To do so, make a list of all your sources of income such as wages, salary, bonuses, tips, Social Security, child support/alimony, your savings, and anything that would appear on your credit report such as recurring monthly expenses (rent, mortgage, utilities, credit card/car payments).
GET PRE-APPROVED FOR A MORTGAGE
Once your list is complete, you will need to get pre-approved for a mortgage. Caution: A pre-qualification and a pre-approval are two different things. A pre-qualification means that the loan officer has reviewed the financial information you have provided and believes you will qualify for a loan. Pre-approval is the second step in the loan process, which is a conditional commitment to loan you the money for a mortgage. So be ready to provide the lender with bank statements, pay stubs, tax returns or other documentation if you are self-employed. If you qualify, your loan officer will provide you with a pre-approval letter stating the amount for which you are approved.
HIRE ME
Next, hire me as your REALTOR®. I will guide you through the entire buying process. I will always put your best interest first. I conduct myself in the highest ethical standards, always demonstrating integrity and honesty. I pride myself in going above and beyond to achieve the highest in client satisfaction.
LET’S MAKE A WISH LIST
Now that you are pre-approved and have me by your side, let the home-buying adventure begin! Together, let us define what your new home looks like. Make a wish list with your “needs” and “wants.” I will provide you with a detailed list of desirable home features along with a series of questions regarding schooling for your children if applicable, your commute, amenities you might want in your new community, etc.
The next step is for me to adapt your wish list to your budget and provide you with a series of potential homes for you to consider. Simultaneously, I will constantly be on the lookout for additional homes matching your criteria as they become available on the MLS (Multiple Listing Service), a platform available to real estate professionals only where homes for sale are listed before they appear on public real estate apps.
LET’S HIT THE ROAD!
Ready to tour the homes you selected? Let’s go! As we tour these homes, I will be listening carefully to further unveil which criteria are of prime importance to you. Once you fall in love with a home, I will provide you with a report of comparable properties recently sold in the area. This report will reveal whether the home is well-priced for its condition.
Once you are ready to make an offer, I will walk you through the entire document, explaining every single section. No question will remain unanswered. You will sign it electronically and have your earnest money deposit available in the event your offer is accepted.
OFFER ACCEPTED BY ALL PARTIES: CONGRATULATIONS! BUT DON’T KILL THE DEAL BEFORE CLOSING!
You are officially under contract! From this day forward and until closing, there are a certain number of precautions to take to avoid the deal falling through. Until you close on your new home, your loan officer will scrutinize your finances and your life circumstances. Therefore: DO NOT change your familial status, DO NOTquit, or change jobs, DO NOT switch from salary to commission, DO NOTmake unusual bank deposits, withdrawals, or transfers, DO NOT co-sign for anybody’s loan, DO NOT make large purchases, DO NOT open new credit cards or take out new loans. Each unusual expenditure will work against your credit and could weaken your position to obtain a loan. Pause any new credit activity and keep paying your bills on time.
NEXT STEPS: INSPECTION & APPRAISAL
Unless you already know a home inspector, I can provide you with a list of home inspectors for you to select from. Depending on the outcome of the inspection, we might ask the seller for repairs or credit at closing. Please note that a cracked switch plate is considered merely “cosmetic”. Items to be on the lookout for are mostly health and safety-related such as the structural integrity of the home.
The loan officer will order an appraisal to verify that the value of the property matches or exceeds the loan amount.
Simultaneously, the title company will order a title search to check the property’s ownership history to make sure the current owner has a complete ownership stake in the property, without any legal claims against it. If everything goes well, the loan officer will review your file one last time and provide final loan approval.
LET’S CLOSE THE DEAL!
Closing usually takes place at the title company. This is when you, the buyer, pay the seller and officially take possession of the home. CONGRATULATIONS! You are a homeowner!