Steps To Buying A Home
Buying a home should be the most wonderful, stress free , and fun experience of a lifetime. In order to make sure you have that great experience, I have set a few steps to assist in making life easier.
Step 1: Approval - Speak with a lender of choice the get your approval underway. This is to let you know if you are ready to buy or what needs to be done to prepare you to be buyer ready. The lender will pull your credit, gather necessary documentation from you (W2's, taxes, bank statements, pay stubs, etc). The will let you know what amount of loan you can afford based on credit, credit score, and debt to income.
Step 2: Choose a Realtor or Real Estate agent to assist you in your home search. They are looking out for your best interest. They guide you through the process, making sure time is managed appropriately to meet dead lines, explaining and executing documentation, negotiating, setting up Inspections with 3rd party vendors, pricing, closing arrangements with attorney, communicating with your lender, and any other areas needed to assist you as a buyer, making the experience easier on you.
Step 3: Home Search your agent will sit down with you to gather information on who are involved in making purchase decisions. What specifications you want in your home, such as bedrooms, baths, neighborhood/area, one/two level, garage, large/small back yard, HOA fees or not, these are just a few. Once you have decided on what's most important, then your agent will set up you a listing book account so that you both can search and communicate daily. Showing appointments scheduled and the search begins.
Step 4: Negotiations once you and your agent have located the perfect home, it's time to negotiate. An offer to purchase is filled out, due diligent or earnest money fee is forwarded to the listing agent to present to the sellers. Whenever the buyer and seller have come to meeting of the minds and agreed price is accepted, with both parties signatures, the home is now under contract.
Step 5: Meeting Deadlines a contract is in place, now it's time for buyers agent or buyer to schedule all necessary inspections of buyers choice to be completed by due diligence date, if buyer chooses to handle, then agent make sure buyers have completed task in timely manor. Contract is forwarded to buyers lenders for processing of loan. Closing Attorney is selected and informed of hire to place closing on their calendar. Loan Officer contacts attorney to schedule title search and orders appraisal with appraiser.
Step 6: repair request Once all the inspections are completed the buyer has the right to ask for reasonable repairs of the findings on inspections by the due diligence period. Sellers may or may not agree. If they don't agree and buyer wants to walk away, then they can and should receive their earnest money back. If buyers are okay with findings or sellers are willing to fix the items, then the sell continues on. Sellers fixes the items requested, informs buyer agent that items have been completed (must be completed before closing).
Step 7: Walk Through about a week before closing the buyers and agent will do a walk through of the home to make sure everything is still in tact and agreed repairs have been performed. If so, then wait for closing. If there are still issues with agreed repairs, make sellers agent aware to correct any issues.
Step 8: Lender's Final Approval once the lender has processed the loan in full, appraisal and title search is of satisfactory they will approve closing date or let us know what date has to be changed to (if applicable). They will inform the buyer of any closing cost fees that need to be brought to closing in certified funds. (Pre & Post closing fees).
Step 9: Closing Day buyer is to bring required funds in certified check to attorney's office at scheduled closing time. Attorney will go over and have clients to sign their loan documentation, cut the checks to the sellers mortgage company (if any) and to sellers, cut commissions to listing and selling companies, record the deed, pay any 3rd party vendor that receipts were provided for, and give the buyers their keys to new home.
Congratulations!!! You have purchased your new home.
At anytime the lender can pull your credit, call employer, and request documentation up to closing date and time. Please make sure you do not have any credit extended or have your credit pulled for any reason, do not buy anything on existing credit cards, do not quit your job or change jobs without consulting your lender, continue to pay everything on time as this could hinder or postpone the closing, because it changed your credit situation