guide For The Home Buying Process
STEP ONE
Pre - Approval One of the first steps in the home buying process is to get your financing pre -approved. In doing so it... • Gives you credibility • Helps determine the price range you can afford • Strengthens your offer and gives you leverage in a multiple offer situation
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UNIVERSITY HEIGHTS
A FEW THINGS
To Consider Between the time you apply for financing and the time of closing, DON’T... • Make a job change • Make any large purchases (vehicle, large furniture, etc.) • Omit debts or liabilities from your loan application • Originate any new inquiries into your credit • Make a change to your bank accounts
By the Books It’s important to know who pays for what when it comes to agent fees. • The Buyer Agent’s commission is typically paid by the seller*. • In a For Sale by Owner situation, it can be negotiated that the seller pays the Buyer Agent’s commission. • In a New Construction situation, it can be negotiated that the builder pays the Buyer Agent’s commission.
*Please discuss the commission with your agent— every situation is unique.
MIDDLETON
BENEFITS OF BUYER AGENCY • Your Buyer Agent represents you and carries out the duties that are important to you. • Your Buyer Agent provides you with opinions and advice pertinent to your transaction. • Your Buyer Agent negotiates solely on your behalf.
FA Q S How long does a Buyer Agency Agreement last? You decide. Can an agent give their professional opinion of a home’s market value if they don’t have a Buyer Agency Agreement with you? No. Should you work with the Listing Agent to draft an offer on a home? You can, but remember, the Listing Agent represents the best interests of the seller.
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TIPS FOR AT TENDING AN
Open House If you choose to attend an open house without your Buyer Agent, bring along his/her business card to hand out to the open house host or let the host know who you are working with. If you decide you want to submit an offer on the home, contact your agent with questions or to get started on the offer process. Remember that the open house host represents the seller.
UNDERSTANDING
At torney vs. Realtor As you prepare to buy a home, you might consider how an attorney measures up to a realtor. Here are a few differences: • You pay attorney fees – often by the hour. The Buyer Agent’s commission can be paid by the seller. • An attorney does not have the expertise to help you determine the market value of a home. • An attorney is not by your side during the home inspection and final walk through – your Buyer Agent would be.
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THINGS TO CONSIDER WHEN
Writing An Of fer Purchase price Earnest Money Closing Date Down Payment Amount Inspection Contingency Radon Testing
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WHAT IS EARNEST MONEY? • When you get an offer accepted, this is the check you write which will be deposited in a trust account for the duration of the transaction. At closing, this amount will be applied toward your down payment. • In our area, earnest money is typically a minimum 1% of the purchase.
INSPECTING YOUR HOME • The inspection is to determine defects only. • A defect is a significant adverse effect that impacts the health and safety of future occupants or value and life expectancy of the property. • Budget $300-500 for the inspection. The cost varies by the size of the home.
THE APPRAISAL
Before your lender approves the amount they are willing to give you, an appraisal by an unbiased professional is required to assess the home’s market value. Plan to budget for the appraisal. The appraisal is ordered by your lender.
C L O S I N G D AY !
To make this day official, bring these items along: • A cashier’s check, made payable to the title company, for the remainder of the down payment and closing costs, or prearrange to have funds wired. • Your driver’s license or official photo ID (i.e. passport).
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Yo u’re b uy i n g m o re t han a ho u s e . Youʼre investing in family memories, dreams, and a new lifestyle. Sprinkman agents have got your back.
CHAS MARTIN TEAM
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