| 11 Steps To Buying a Home | 10 Don'ts | Local Market | 1st Time Buyers |
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A Step By Step Look at Home Buying
Here are the 11 steps to buying a home. Step 1, Get Your Credit/Finances in Order
Your credit reports is a primary factor in determining what interest rate you will receive and how much the banks are willing to loan you toward the purchase of the property, so make sure you check it and ensure there are no issues before starting the property search process Know your financial history before you apply for a mortgage, as errors on credit reports are common and often require a lot of time to clear up. Step 2, Get Familiar with the Mortgage Industry
Have at least a bit of background about the loan process before you talk to a lender. I can help you find a lender that you are comfortable with and that fits your needs. Step 3, Get Pre-Approved for a Mortgage
Once your credit/finances are in check, apply for a pre-approved mortgage to establish how much house you can afford? It also helps if you are involved in a bidding war for a property, the potential buyer that has already been pre-approved will get preferential treatment from the seller. Step 4, Determine Your Wants and Needs
Grab a piece of paper and divide it into three columns. If you'll have a co-owner, have that person make a list too, but don't share ideas just yet. Column 1, List Must-Have Features · If the house must be located in a specific neighborhood or zoning district (zoning districts determine density and land use) · If the house must have 3 bedrooms, a 2 car garage, a large kitchen, a view. · If there must be no restrictions against a home-based business. · If the home must be one level, with few or no steps. · List every feature you feel is a must. Column 2, List Features You Would Like: · A screened porch or deck. · Whirlpool tubs, walk-in closets. · Swimming Pool
· Hurricane shutters or glass · List all features that are important to you--but that you might be flexible about. Column 3, List Features You Do NOT Want: · A home located next to a busy road · Certain types of architecture. · Homes that need a great deal of work. · List all features you absolutely cannot accept. Review your list. If your co-owner made a list, compare them to see if your priorities match. If they don't, you'll need to compromise, revising your lists so that both of you are happy. Making a list is a good exercise because it forces you to think about your wants and needs, but I can almost guarantee you that the list will change and evolve when you actually begin to look at houses. Even home buyers with an unlimited budget rarely find the "perfect" home. Step 5, Select a Qualified Real Estate Agents
Basically, there are many agents, all adhere to the professional standards or code of ethics established by the National Association of Realtors, but here are some reasons of what you should look for in an agent and why you should do business with me
· I am an accredited by the National Association of Realtors as an accredited buyers agent, trained to negotiate and advocate for you. · I will provide you with ample educational resources, information about the area, comprehensive MLS searches and information on listings you are interested in · I offer prompt and professional service, and I am dedicated to find you the property that is right for you · Ask me for referrals.Let my previous customers tell you if they were satisfied.
· I ONLY represent buyers, and have no conflicts of interest by trying to "play both sides of the fence". Step 6, Start Searching for a Home
As a Realtor, I have many tools at my disposal to help you through the process. I can help you by searching the multiple listing service (MLS) system to find listing that match your desired criteria, providing you with Comparative Market Analysis (CMA) reports, lend my knowledge of the area, school systems and more. You can also pick up House For Sale magazines and read classified ads in your local newspapers, surf the Internet for homes, or plan afternoon drives to preview neighborhoods if you live in the area. Hint: You can use my website to search and find and then I can show you any property in the area! Step 7, Handle Pre-Offer Tasks
Deciding whether or not you want to buy a house involves a look at its structure and its features, but there are many other topics that are every bit as important to your purchase. Step 8, Make an Offer
Here are some tips that can help you get the best deal when it’s time to make an offer on a home. No matter what your strategy is, you should have a very good idea of the home's market value before you make an offer. Lowballing it Be realistic, some seller's take a lowball offer as a personal insult and may not be as anxious to deal with you on your next offer. That's fine if low is all you'll go, or if the property is truly overpriced, but it can create problems with future negotiations. Being generous Come in too high and you may not find the seller's low point. Helpful Advice from your Agent One area I can help you is to provide you with enough information and advice to assist you in determining the best price to offer. I can run comparables for you, and will be involved in offer strategies. Finding Sales Information – See my page of helpful websites for the real estate consumer! Advertising gives you a feel for average asking prices, but your focus should be on recent sales prices. You'll find them recorded at the Lee County Property Appraisers website www.leepa.org or on multiple listing recaps of sold properties. Should You Have an Appraisal? Lenders will require an appraisal before issueing your loan commitment. A CMA (comparable market analysis) of recently sold properties by a competent Realtor will give you a very good idea of the market value of the property. If you do order a pre-purchase appraisal, be prepared to wait 2-3 weeks and pay in the range of $300-$400. What about tax values? Tax valuations are not a good measure of a property's market value. Your community might have a general guideline, such as tax value = 80% of market value, but the figures are not usually reliable. Ask your local tax assessor for details about your specific area. Take a look at a home's tax value, but never assume it matches the market value of the property. Other factors that affect price · How long has the house been on the market? If only a short time the sellers might not too motivated. · How does the house compare with others for sale in the same neighborhood? · Is the house in need of repairs or massive updates? Updating items such as insulated windows, plumbing and electrical systems, kitchens, and baths can be costly. · How much time is left in the roof? · What about the neighborhood, do you foresee home values climbing, staying the same, or possibly taking a downturn? Bottom line Analyze each home's condition and compare it to others on the market, but your final offer will likely involve a good deal of gut instinct. Is it the house for you? If you've been searching for a home for awhile, you will probably know the answer to that question the minute you walk in the door. Step 9, Home Inspections and Other Tests
In some states, home inspections are accomplished before the final purchase contract is signed. In other states, inspections take place after an offer is finalized. No matter when you do them, it's critical to decide which inspections and tests you want to perform. Talk with your real estate agent or other advisor to find out when inspections should be handled and if additional types of testing are important for your specific area. Step 10, Avoiding and Correcting Last Minute Problems
As your closing date nears, everyone involved in your real estate transaction should check its progress on a daily basis, because staying on top of things means you'll know immediately if there's a problem. I make it a point of communicating in a timely manner with lenders, appraisers, inspectors, surveyors and title companies to make sure everything is on schedule. Step 11, You're on the Way to ClosingThe culmination of the real estate buying process is called the closing also called settlement, the event that transfers ownership of the property to you. |
10 things not to do 1. Don't Make a Major Purchase If you are depending on a mortgage to move in, don’t make any major purchases until after the closing on the home (fight the urge to get a new car to put in your new driveway). An increase in your debt to income ratio reduces the amount of monthly income available for your mortgage payment. Using cash to purchase the car could also create a problem, since banks consider cash reserves when approving your mortgage. If you must make a major purchase before closing, talk to your loan officer before you do it. 2. Don't Change Jobs Unless It's Necessary Lenders like to see a consistent job history. They aren't usually as nervous if you change jobs within the same field, but it's better to stay put until the keys to the house are in your hand. 3. Don't Let Your Emotions Take Over Be realistic. No home is perfect, especially older homes. If the seller refuses to do a small repair, don’t let it kill the deal on a home you truly love, realize It's not unusual for new owners to take care of some repairs themselves. Keep a cool head during the entire home buying process, especially during and after an inspection. On the other hand, don't fall so much in love with the house that you'll buy it no matter what needs to be done--unless you're absolutely sure you can handle it emotionally and financially. Decide what type of repairs you can realistically tackle, then stick with the decision. 5. Don't Forget to Switch Utilities That sounds simple, but you'd be surprised how many people forget to apply for utility service at their new home. Call the utility companies as soon as you have a contract. Find out how many days lead time they need to switch the service, then get back with them when you have a firm closing date. For information on Pine Island Utilities, see my community resources page. Don't forget to discontinue services at your old home. 6. Line Up Your Hazard Insurance Acquire hazard insurance as early as possible, as it’s another often-forgotten task that buyers scramble to take care of at the last minute. Lenders will ask to see an insurance binder showing you have coverage at the closing. Homeowners, windstorm and in some cases flood insurance will be required on Pine Island. While it's great to be friendly, but don't get into too many long discussions with the sellers, because it could cloud your judgments. Remember, this is their home. A casual statement about "ripping up that ugly carpet" might be enough to keep the seller from negotiating with you about repairs or other issues that crop up. 8. Don't Panic if the Appraisal Comes in Low At least not at first. There are some things you (and your agent) can do to correct the problem. As a buyers agent, I always provide the appraiser with comparable sales in the neighborhood, because some appraisers are not familiar with the specific Pine Island market. 9. Don't Go It Alone As your agent, it's my duty to track many of the day to day details that involve the lender, the seller, or the seller's agent. 10. Don't Ignore Lender Requirements Know what is expected of you and take care of it. For instance, a Certificate of Eligibility is required to move forward on a VA loan. That's something you must handle yourself. Answer lender questions and provide required paperwork as quickly as possible--your closing depends on it. ____________________________
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