guide FOR THE HOME BUYER
STEP ONE
Pre -Approval One of the f irst steps in the home b uying pro cess is to get your f inancing 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
NEAR WEST
UNIVERSITY HEIGHTS
A FEW THINGS
To Consider Betwe en the time you apply for f inancing 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 cre dit • Make a change to your bank accounts
B y the Books It’s imp or tant 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 b e negotiated that the seller pays the Buyer Agent’s commission. • In a New C onstr uction situation, it can b e 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.
FAQs 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.
WEST
T I P S F O R AT T E N D I N G A N
Open House If you cho ose to attend an op en house without your Buyer Agent, bring along his/her business card to hand out to the op en 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 star ted on the offer pro cess. Rememb er that the op en house host represents the seller.
U N D E R S TA N D I N G
Attorney vs. Realtor As you prepare to b uy 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 b e paid by the seller. • An attorney do es not have the exp er tise to help you determine the market value of a home. • An attorney is not by your side during the home insp ection and f inal walk through – your Buyer Agent would b e.
NEAR EAST
THINGS TO CONSIDER WHEN
writing an offer PURCHASE PRICE EARNEST MONEY CLOSING DATE DOWN PAYMENT AMOUNT INSPECTION CONTINGENCY MONONA
RADON TESTING
MAPLE BLUFF
What is Earnest Money?
Inspecting Your Home
• When you get an offer accepted,
• The insp ection is to determine
this is the check you write which will b e dep osited in a tr ust account for the duration of the transaction. At closing , this amount will b e applied toward your down payment. • In our area, earnest money is typically a minimum 1% of the purchase.
defects only. • A defect is a signif icant adverse effect that impacts the health and safety of future o cc upants or value and life exp ectancy of the prop er ty. • Budget $300 -500 for the insp ection. The cost varies by the size of the home.
ONE LAST STEP
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 b udget around $400 for the appraisal. The appraisal is ordere d by your lender.
THE BIG DAY
Closing To make this day off icial, bring these items along: • A cashier ’s che ck, 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 off icial photo ID (i.e. passp or t).
FITCHBURG
SprinkmanRealE state.com //
613 Williamson Street, Suite 202 | Madison, WI 53703