Buying Process
Buying a home is one of the most important decisions in life. It will affect you emotionally, financially and personally; therefore, we highly recommend seeking professional advice from your trusted Realtor. This Real Estate expert, not only will know and understand the whole process of buying, but will also have the circle of influence composed of people with the right set of skills and knowledge to best support you every step of the way; from loan officers to inspectors, contractors, surveyors, insurance agents, and every trade in between. If you don't already have a real estate agent, now is the time to find one. Make sure you interview your Realtor! This is a great adventure and you must feel comfortable before you start the process.
Some buyers believe that calling the listing agent will save them money and perhaps get them a better deal; that is technically a misconception. Although the seller's agent can help you, their job will be to look out for the best interests of the homeowner, so it's wise to have an expert to make sure you're getting a fair deal too. Especially when in Florida, it is customary for the seller to pay the commission of the sale. This means that hiring your own agent to represent you in the purchase of your home, whether is a new construction or used home, it’s absolutely FREE to you as the buyer.
GETTING STARTED!!
Now that you are ready to buy, we are going to outline the steps involved in the process:
Cash buyers: This is the easiest transaction where you can save a lot of money in closing costs. We can provide you with a closing cost estimate comparison so you can see the difference and pros-cons about purchasing Real Estate using cash. Determine your budget, make sure you have proof of funds (last bank statement) since most of the sellers will require proof that you have enough available funds to cover the purchase price plus closing costs.
Financing Buyers: First, get pre-approved!!
Contact a loan officer to find out exactly what loan programs are available to you. They will help you find the best loan program available for you based on your credit score, income, and available funds for the down payment and closing costs.
GETTING PRE-QUALIFIED:
Are you qualified to purchase a home? If so, what can you afford, or how much is the max loan amount you are qualified for?
Available funds for a down payment? (There are available loans that can cover up to 100% of the sales price, 97.5%, 95%, 90%, etc)
How much will you need for closing costs and other payments? (The loan officer will outline the costs associated with buying a home, in addition to the down payment — some of these are: inspection, appraisal and survey fees, taxes, etc.) Closing costs are significatively lower for cash transactions.
Click here to read more information about financing including some useful mortgage
DECISIONS, DECISIONS!!
CONGRATULATIONS!! You have now decided to start the process of buying a home and achieving the American dream. The loan officer has given you the thumbs up to start YOUR house hunting!! Now, it is time to decide the type of property you wish to buy. Here are some of the things you should consider when making your list of WISH, WANT, MUST & PREFERRED:
What City, County, or particular area you want to live in?
Is there any specific neighborhood you like?
Lot and home size
How close to schools, parks, shopping, work, transportation, etc, you need to be?
Number of bedrooms, bathrooms, and garage stalls
Is there any specific property type, construction type or style you prefer?
What school district you MUST or WANT to be part of?
Having a list of your MUST, WANTS/WISH, and PREFER will help you and your Real Estate Professional to narrow down the search to the homes that will fit your criteria.
CHOOSING YOUR REALTOR®
As discussed above, hiring a professional REALTOR® is the most important step when purchasing a property. Your agent will represent you, work in your best interest, will educate you about the process of buying real estate, and provide invaluable negotiating experience to help you acquire your dream property at the best possible price and with the best possible terms.
Contact us to learn more about how we can help you achieve your American Dream of property ownership! We will work the extra mile to ensure you have your dream property where you want it and within your budget!
VIEWING HOMES
One of the most exciting aspects of buying Real Estate is visiting different properties in your price range and seeing houses in all sizes, conditions, and styles. It's the best real estate education of all. Once you and your Realtor start the search, your list might change and your radius of search might increase.
In this technology era, finding homes to tour has never been easier. It is crucial that you keep open communication with your Real Estate Agent. Feedback about the showings and the prospect homes you receive from your REALTOR® will help him/her better understand what is that you are looking for and get a better idea of your taste!
Work with your REALTOR® and have them send you properties directly
Take the reins and search for homes online on my website. (Click here = add link) to view properties. Ask me questions about any properties that you are interested in
It is recommended to always try to schedule showings 24 hours in advance. Sellers need some time to get the house ready for you! Last-minute showings are possible but should not be the norm.
PREPARING AN OFFER
Once you find *THE ONE*, you will work with your agent to write up an offer to be submitted to the homeowner or their agent. If you're happy with the home as-is and are willing to pay the full price, creating an offer is fairly straightforward. However, you may request a lower price, ask for changes to be made, and add specific stipulations to the deal. A typical offer contains many of the things detailed below:
The offer amount: price you're willing to pay for the home
The offer type: CASH or Financing
The closing date
A list of items you want left in the home (such as specific appliances and home equipment)
Contingencies (specific things that must happen in order for the deal to take effect, like your inspections, appraisal, and loan approval)
APPROVAL AND NEGOTIATION
Once the offer is submitted, there are 3 possible scenarios:
Seller accepts: You can move on to the next step.
Seller Rejects your offer: If its too low and/or you are requesting additional items that seller doesn’t agree to.
Seller responds with a counteroffer.
In either of the last two situations, there is often room to negotiate. Your REALTOR will help you sort out what's fair, and will have a good idea as to what the homeowner may negotiate further on, though you ultimately have total control over what alterations you're willing to accept.
WHAT HAPPENS ONCE YOUR OFFER IS ACCEPTED?
Once the seller signs the contract, it's official!! You are now under contract.
There are many steps that still occur behind the scenes. Your agent will be able to introduce you to key players and will help keep track of where you are in the chain of events. Oversee the various agents and entities, as they handle the tasks that will lead to a successful closing:
Opening escrow: Deposit needs to be dropped of to the party that will hold it until closing (usually done through a third-party title company)
Home Inspection: Hiring a reputable home inspector who will spend several hours scouring through your new home to ensure that there are no surprises (consider hiring an inspector who is a member of one of the major home inspection associations)
Securing your home loan. Your loan officer will work diligently to get the loan approved with the mortgage lender
Locking in your interest rate if you haven't already done so (your loan officer will likely guide you as to when the best time is to lock in your rate to ensure you're getting the best possible terms)
Obtaining an appraisal of the home: All financing transactions involving a lender, require an appraisal to be completed.
Renegotiating the offer (if there are any issues observed by the inspector or the appraised value comes back lower than the purchase price, you may be able to request a reduced price for the home and/or have repairs made)
Obtaining a land survey: All financing transactions involving a lender, require a land survey to be completed. Survey determines the property boundaries, where exactly a particular parcel ends and the other begins. (This is completed at buyer’s expense)
Verifying title and obtaining title insurance This is completed through the title company or closing attorney
Obtaining property insurance coverages. Title insurance, home warranty, flood, and homeowners insurance
Performing a walk-through: Within 24 hr prior to closing, your agent should bring you back to the house to confirm any necessary changes have been made and that the property is as you expect and property condition is the same or better than what it was at contract date.
Review Closing Documents: It is highly recommended to verify all closing documents and make sure all the documents needed are included, names, and all information included are correct.
Review closing figures (amounts), Make sure all cash required to close and wire instructions to initial the wire are provided and reviewed before you head to closing.
Closing: Funding your escrow account
SIGN AND MAKE IT YOURS
Although it takes a lot of work to get to the final signing, it's worth it!!.
How long would my closing take?
It really depends on the type of transaction. If you are purchasing the property with cash, your closing package will be considerably small and closing will most likely take less than 30 minutes. However, if you are financing the purchase of the property, then we recommend some wrist exercises so you can keep up with all the signing!!As you will need to sign quite a few more pages (about 100 pages or more). Make sure you clear at least 1.5 to 2 hr of your calendar for the whole process.
Once you've signed all the documents and the money has been disbursed to the seller and all parties involved, then CONGRATULATIONS!!! you're a HOMEOWNER!!!
WHO'S INVOLVED?
REALTOR®: as your real estate professional, I am committed to helping you reach all of your real estate goals
Mortgage lender: the bank or firm that provides your home loan
Mortgage officer/broker: the person who works for the lender and helps you obtain a loan
Home inspector: the individual who examines the home for hazards and defects
Home appraiser: the person who gives an educated opinion as to what the home is worth
Title company: the agency that makes sure the home can lawfully be transferred, issues insurance, and may maintain the escrow account
Real estate attorney: optionally, you can choose to hire an attorney to review the closing docs
