Buying a home is one of the most exciting milestones of your life. To prepare yourself for this moment, you need to know what to expect during the process. This step-by-step first time buyer’s guide created by your agent will help reduce the stress of buying a home and help you enjoy the journey as much as possible.
Unless you’re paying cash for your home, you’ll need to talk to a good local lender about obtaining a pre-approval letter for financing. The lender can provide answers to questions about interest rates, closing costs, loan products, down payment requirements, & monthly payment expectations. We can provide referrals for mortgage lenders if needed.
We’ll sit down with you to discuss your search criteria in detail, review available inventory, and answer any questions about the home buying process. This will maximize efficiency of your time looking at properties that meet your criteria and we can all be on the same page with your timeframe and goals. We’ll also sign the state required disclosures as well as a Buyer Representation agreement.
After the available properties are narrowed down to your list of favorites, we will schedule buyer tours to see homes that not only fit your criteria but also have great resale potential. Navigating the search process to help you make a smart investment is our priority.
Once you have found The One, we will review the comparable sales data to analyze the list price and come up with an offer strategy. We will review the sales contract and offer terms and present the offer in writing to the listing agent. You will be guided through the negotiation process and once terms are mutually agreed by buyer and seller, the offer will be revised for the seller to sign. Once the contract is signed by both parties, you will be officially under contract and initial earnest money of typically $1000-$2500 will be due.
My Goal is to Provide You With the Most Personalized Service That is Designed to Help You Buy Your Dream Home
You will have an inspection contingency typically, 5 or 7 business days to conduct an inspection after the offer is signed. We can provide referrals for professional home inspectors if needed. If any serious issues are uncovered, you can negotiate seller repairs or credits at closing to have the repairs done yourself. You will pay the inspector upon having the inspection.
You will have an attorney review contingency typically 5 or 7 business days to have an attorney review the contract after it is signed. We can provide referrals for local real estate attorneys if needed. If there is a condo association, this will be your opportunity to review all of the condo association documents, budget, and meeting minutes. Your attorney will negotiate amendments to the contract as well as formalize any inspection repairs/credits that the seller agreed to. You will pay for the attorney’s fee (typically $500-$850 or more for new construction deals) upon closing.
If you are obtaining financing, you will need to make a loan application upon receiving the contract. Your lender will let you know the list of financial documents necessary to provide to the lender including a couple months of bank statements, tax records, pay stubs etc. Once you feel confident your home purchase is moving forward after attorney review/inspection period, your lender will have an appraisal done on the property.
Now is the time to go back to the mortgage lender who pre-approved or pre-qualified you and choose your mortgage. You will be presented with various options based on your unique financial situation, including fixed-rate, variable-rate, 15-year, 30-year, or special programs such as VA loans or FHA loans. Work with your mortgage lender to select the option you feel the most comfortable with.
Your lender will have your new home appraised so they have their independent value of it. The appraisal is to ensure that all parties involved are paying a fair price for the house.
Get expert help with determining property values, crafting competitive offers, negotiating contracts, and more. Contact Ann Marie today to discuss all your real estate needs!
