BUYER’S GUIDE
1. Paying too much
4. Better property coming up
As a buyer, you are in the driver’s seat and I’m here to guide you throughout the process. I’ll advise you on home value, help you minimize risks, and leverage your marketability to sellers.
Buyers often worry about the following:
Buyer’s Mindset
2. Something being wrong with the house
3. Losing a property
Guide to the Buying Process
2. Meet with Agent and discuss what you’re looking for.
8. Closing confirmed. Agent supports you at closing until the keys are in your hands.
6. Schedule inspection. Discuss results with Agent. Decide on any repairs needed.
1. Pre approval - quick and necessary to stengthen your offer
4. Go shopping! Look at homes with your Agent. Choose your home.
Next Steps
Each transaction is unique, so this will serve as a general and broad guide.
5. Make an offer. Negotiate offer. Get offer accepted! Contingent on inspection.
2. Complete initial questionaire on what you’re looking for on your dream home
3. Establish search criteria for your Agent
4. Review matches to your criteria with your Agent and schedule showings
1. Get pre-approved by lender or bank.
7. Inspection contingency removed. Bank orders the appraisal. Final financing set.
3. Agent will find and send options for you to review.
5. Make an offer!
• Your Credit History
Before lenders decide to preapprove you for a mortgage, they will look at several key factors:
• Credit Score
It’s a good idea to make a list of 3-6 homes to see at one time in order to make the most of your time during each day of showings. It is my job to be extremely available to you and flexible when it comes to scheduling showings. Your Agent needs to be quick, flexible, available and communicate well in order to find you the perfect home.
Think of a mortgage pre-approval as a physical exam for your finances. Lenders will likely poke and prod into all corners of your financial life as a way of trying to ensure you’ll repay your Atmortgage.ourfirst
As you search for a home, getting pre-approved for a mortgage can be an important step to take. Consulting with a lender and obtaining a pre-approval letter provides you with the opportunity to discuss loan options and budgeting with the lender; this step can serve to clarify your total house-hunting budget and the monthly mortgage payment you can afford.
Pre-Approval
As a borrower, it’s important to know what a mortgage preapproval does (and doesn’t do), and how to boost your chances of getting one.
• Going through the pre-approval process with several lenders allows a home buyer to shop interest rates and find the best deal.
• A seller often wants to see a mortgage pre-approval letter and, in some cases, proof of funds to show that a buyer is serious.
• After reviewing your application, a lender will offer pre-approval or pre-approval with conditions, or deny pre-approval.
• The first step is filling out a mortgage application and supplying your Social Security number so the lender can do a credit check on you.
• You’ll also need to provide extensive documentation of job history, assets and liabilities, income tax returns, and more. Selfemployed buyers may need to provide additional documentation.
• Employment history
• Debt-To-Income Ratio
meeting, we will discuss what you’re looking for in a property, your timeline and go over all questions. I will then ask you to fill out an intake form that will go even deeper into questions about your home search.
• Income • Assets and liabilities
From this information, I will set up a personalized property list based on your criteria. I’ll funnel all properties and pick the best to view. From this list, you can select homes that you like so we can narrow down the search! I will be sure to notify you daily of any new properties that become active on the MLS that fit your search criteria. With this fast-paced market, it will be important for both of us to keep an eye out for new listings and go see them in person as soon as possible!
The Offer
If we find a home that you want to make an offer on, I will typically review the comparable properties in that area to help you determine a solid offer on the home. I will then call the agent to find out what I can about the home and any current offers. From there, I will send you the following paperwork that you will need to review and sign:
In this market, any offers that you make have to be powerful. More times than not, a winning offer will typically be at asking or over asking depending on the number of offers you are up against in today’s competitve marketplace. The most important factors to get you under contract are having a competitive offer, a good lender to call on your behalf and to have the agent representing you build a good relationship with the listing agent.
Prior to submitting an offer, it’s important to find out how many offers are currently on the table, what it will take to be competitive.
1. ‘Exclusive Right to Buy’ - allows me to represent and advocate for you as your agent.
2. ‘Contract to Buy and Sell” - official offer that will be submitted to the listing agent.
Title work is also ordered and the due dilligence process begins.
Once an offer is submitted, it typically takes around 24 hours to hear back on whether your offer will be accepted. When both parties have signed the contract, you are then considered ‘under contract’ or pending. You will have about 48 hours from this point to deposit your earnest money. Earnest money is typically 1% of the purchase price and is considered a “good faith” deposit on the home. These funds are held in escrow at the title company and then used towards the buyer’s closing costs or purchase price at closing.
During this time, it is extremely important to be in contact with your lender. Make sure to provide them with any documents they need as quickly as possible. This will ensure we stay on track and can close on the agreed upon date. In order to make sure your loan is approved, we have to make sure your credit is protected and does not change. During this time, it is important to try your best to postpone any large purchases and make sure to not open any new lines or credit until we have closed.
Under Contract
The inspection cost is generally calculated by square footage, age of home and distance. Inspections typically range from $300 - $700 depending on the size of the home.
One of the most important steps in the purchase of a home is the inspection. This will cover all major systems of the home including HVAC, plumbing and electrical. The inspector will also inspect the windows, utilities, water pressure, foundation, and so much more. The inspection typically takes about 3-4 hours and will be scheduled a few days once you’re under contract. If you would like to attend the inspection, I typically tell my clients to show up for the last hour of the inspection. This way, the inspection has time to do their job and can then explain to you what they have found when you arrive. Some clients of mine prefer to be present throughout the duration of the inspection so they can wak around the home with the inspector. If you would like to schedule any additional inspections, please let me know so I can get everything scheduled close to one another. Other due diligence items to consider include radon testing, sewer scope, roof inspection, chimney inspection, termite inspection.
Due Diligence
Satisfy DependingConditions:onyour situation you will likely have some or all of the following condiitons to your purchase: 1. Financing 2. Home Inspection 3. Condo Document Review 4. Sale of Buyer’s Home - Contingency 5. Other Waive Conditions
Deposit: Once the Buyer and Seller have signed off on the Purchase Contract, the home is conditionally sold; this means the Seller must sell to you, however, the sale is not final until you (the buyer) satisfy all applicable conditions. The escrow deposit is usually held by the listing brokerage and will not be applied to the purchase price if you finalize the sale or will be returned to you if you do not waive conditions.
Your agent will let you know all of the details, but in a nutshell, here is what will happen next:
YourCongratulations...OfferHasBeenAccepted!
©2022 Residential Agent Inc. is an Equal Housing Opportunity service provider. Residential Agent Inc. and its affiliates do not guarantee the accuracy of square footage, lot size or other information concerning the condition or features of property provided by the seller or obtained from public records or other sources, and the buyer is advised to independently verify the accuracy of that information through personal inspection and with appropriate professionals. If your home is currently listed, this is not a solicitation for your listing. Residential Agent Inc. DRE #02068079
