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Eight steps to buying your home

Eight steps to buying your home

1. Decide to buy.
Although there are many good reasons for you to buy a home, wealth building ranks among the top of the list. We call home ownership the best investment most people ever make. We believe when it is done right, home ownership becomes an investment that lays the foundation for a life of financial security. There are solid financial reasons to support your decision to buy a home, among these: equity buildup, value appreciation, and tax benefits.

Base your decision to buy on facts, not feelings.

  1. If you are paying rent, you very likely can afford to buy.
  2. There is never a wrong time to buy the right home. All you need to do in the short run is find a good buy and make sure you have the financial ability to hold it for the long run.
  3. The lack of a substantial down payment doesn’t prevent you from making your first home purchase.
  4. A less-than-perfect credit score won’t necessarily stop you from buying a home.
  5. The best way to get closer to buying your ultimate dream home is to buy your first home now.
  6. Buying a home doesn’t have to be complicated – there are professionals (like us) who will help you along the way.

2. Hire your agent.
The typical real estate transaction involves at least two dozen separate individuals: Insurance professionals, mortgage brokers and underwriters, inspectors, appraisers, escrow officers, Buyer’s agents, Seller’s agents, bankers, title researchers, and a number of other individuals whose actions and decisions have to be orchestrated in order to perform in harmony and get a home sale closed. It is our responsibility as your agent to expertly coordinate all the professionals involved in your home purchase and to act as the advocate for you and your interests throughout.

Seven main roles of your real estate agent:

A Buyer’s Real Estate Agent:

  1. Educates you about the market.
  2. Analyzes your wants and needs.
  3. Guides you to homes that fit your criteria.
  4. Coordinates the work of other needed professionals.
  5. Negotiates on your behalf.
  6. Checks and double-checks paperwork and deadlines.
  7. Solves any problems that may arise.

3. Secure financing.
While you may find the thought of home ownership thrilling, the thought of taking on a mortgage may be downright chilling. Many first-time buyers start out confused about the process or nervous about making such a large financial commitment.

From start to finish, you will follow a six-step, easy-to-understand process to securing the financing for your first home.

Four steps to Financing a Home

  1. Choose a highly reputable, local lender.
  2. Complete the loan application and get preapproved.
  3. Determine what you want to pay and select a loan option.
  4. Submit to the lender an accepted purchase offer contract.

4. Find your home.
You may think that shopping for homes starts with jumping in the car and driving all over town. However, driving around is fun for only so long-if weeks go by without finding what you’re looking for, the fun can fade pretty fast. That’s why we say looking for your home begins with carefully assessing your values, wants, and needs, both for the short and long terms.

Questions to ask yourself:

  1. How much space do I need and why?
  2. Which is more critical: location or size?
  3. Would I be interested in a fixer-upper?
  4. Would I be interested in new construction?
  5. What features and amenities do I want? Which do I really need?

5. Make an offer.
When searching for your dream home, you were just that – a dreamer. Now that you’re writing an offer, you need to be a businessperson. You need to approach this process with a cool head and a realistic perspective of your market. The three basic components of an offer are price, terms, and contingencies.

Price – the right price to offer must fairly reflect the true market value of the home you want to buy.

Terms – the other financial and timing factors that will be included in the offer.

6. Perform due diligence.
Unlike most major purchases, once you buy a home, you can’t return it if something breaks or doesn’t quite work like it’s supposed to. That’s why home owner’s insurance and property inspections are so important.

A home owner’s insurance policy protects you in two ways:

  1. Against loss or damage to the property itself
  2. Liability in case someone sustains an injury while on your property

The property inspection should expose the secret issues a home might hide so you know exactly what you’re getting into before you sign your closing papers.

  • Don’t sweat the small stuff. Things that are easily fixed can be overlooked.
  • If you have a big problem show up in your inspection report, you should bring in a specialist.

7. Close!

Just before closing day, you’ll sign documents that do the following:

  1. Finalize your mortgage.
  2. Pay the Seller.
  3. Pay your closing costs.
  4. Transfer the title from the Seller to you.
  5. Make arrangements to legally record the transaction as a public record.

As long as you have clear expectations and follow directions, closing should be a momentous conclusion to your home-searching process and commencement of your home-owning experience.

8. Protect your investment.
Throughout the course of your home-buying experience, you’ve probably spent a lot of time with your real estate agent.

Even after you close on your house, we can still help you:

  1. Find contractors to help with home maintenance or remodeling.
  2. Help your friends find homes!
  3. Keep track of your home’s current market value.

Congratulations…you own a HOME!