Better Homes and Gardens Real Estate Life

Tag: homebuying

  • Steps to Buying a Home Series: Introduction

    Buying a home is the quintessential American Dream for many and the reality isn’t too far off the mark. Purchasing a home is one of the easiest ways for a family to attain wealth with minimal risk when the home is chosen strategically. The key is to understand the entire buying process and how each step can affect your investment returns. An informed buyer is a prepared buyer.

    What are the steps to purchasing a home? There is more to purchasing a home than scrolling and dreaming of homes on a website. It is taking informative steps, researching, interviewing lenders, agents, title agencies and more. It is understanding the market, finding desirable neighborhoods and feeling out the market demand.

    Looking at buying your first home? This 10-part blog series will provide tips and guidelines. Helping you understand the buying process, enjoy the experience and improve profitability of this purchase. We want to help prepare you on your journey to purchase your first home.

    Identify Your Goals. Understand the long-term wants for you and your family.

    • What are your goals?
    • How much can you afford?
    • What is the ideal home for my budget?

    Find the Right Lender. It often surprises people to learn that pre-qualification can take less than 15 minutes. We can make it happen in person, by video or by email. Even if you’re on the fence about if homeownership is right for you, you should meet with a loan officer and discuss options. Often, the issue is that people are not sure about their credit. But generally, if you’ve been working for the last two years and have decent credit, you can get into a home.. –Jamie Tapia, Alterra LA Area

    • Find a lender you trust, providing excellent service.
    • Get pre-qualified in a matter of minutes.
    • Receive a Loan Estimate, outlining the costs associated with your purchase.

     

    Agents, Home Choice & Offers

    • Find an agent with recommendations from friends, family and your lender.
    • Shop for the ideal home, considering budget, amenities and neighborhoods.
    • Discuss an offer with your agent. Consider all offer details. Be prepared to counter offer.

     

    Complete Home Inspections and Appraisal

    • Always perform a home inspection prior to purchase. Be prepared to spend $500.
    • Receive the home appraisal. This is the market value of the home and required by all lenders.

     

    Find Home Insurance

    • Find an insurance agent with recommendations from friends and family.
    • Research policies, ask questions about coverage situations and work with the lender and agent to see if additional coverage is needed (like flood, personal property, jewelry)

     

    Closing

    • The closing is the process of transferring ownership to the buyer. You’ll receive a Closing Disclosure (CD) a few days prior to closing. Read it closely.
    • At closing, you’ll sign all of the documents, transfer necessary funds and receive your keys. CONGRATS!

  • The Process of Home Buying

    Buying a home is a multi-step process that can be complicated, particularly for first-time buyers. It is crucial to be aware of each step, as competition can be steep: one misstep and the keys to a dream home could go to another family. Read on to discover the best path to acquire one of the greatest investments to date.

    Step No. 1: Decide on a REALTOR®

    A real estate agent and a REALTOR® are different.  While both must be licensed to sell real estate, a REALTOR® goes through numerous background checks and must follow a strict code of ethics, which is consistently enforced by local real estate boards. Another distinction between a real estate agent and a REALTOR® is that a REALTOR® is a member of the National Association of REALTORS®. Ask for referrals and read online reviews/testimonials. Interview multiple agents to find the right one. Look for agents who have realistic expectations and are experts in desired neighborhoods.

    Step No. 2: Get finances in order

    A three-digit credit score and credit report tell financial stories more than bank accounts do. Everyone must carry debt in some form, and the process of paying it can span a lifetime. Paying cash for everything results in a lower score than responsibly carrying debt. A steady job and income can bypass a bad score if prospective clients are willing to put down 10-20 percent. To improve scores, future homeowners should pay all bills on time. A single missed payment can stay on credit reports for seven years, with recent delinquencies impacting scores the most negatively. Additionally, credit limits should not be exceeded, and balances should be kept below 30 percent of the credit limit.

    Step No. 3: Apply for pre-approval

    A pre-approval letter is a statement from a lender demonstrating that one is a qualified buyer who sellers will take seriously once ready to make an offer. Unless one plans on paying cash, a mortgage pre-approval is a good idea before beginning the home-buying process.

    Step No. 4: Know the difference between wants and needs

    Real estate agent will not know where to begin if a prospective client does not. Start thinking about must-haves. They can range from location to the number of bedrooms. Wants can include a pool or a guest home. Compromises are the things one is willing to exchange for needs. For example, a great school district can be attainable if the number of bedrooms is reduced.

    Step No. 5: Begin the home search

    Open houses will become a favorite activity when a real estate agent begins showing homes that fit criteria. This is a fact-finding mission. Take notes and jot down ideas about what is liked and not liked. This will streamline the process and give real estate agents all they need to know to make a happy homeowner.

    Step No. 6: Check off mortgage approval

    An accepted offer will begin the closing stage of the home-buying process. A lender will give the final approval for the purchase and specify the closing date. This is not the time to celebrate by splurging on big ticket items. Unexpected expenses can show up without warning. Paying property taxes or insurance for the first full year on the closing date might be a noted point.

    Step No. 7: Get a home inspection

    A good home inspector will audit the house from top to bottom, literally. They will look at the basement and the roof and everything in between, including the heating system, plumbing and windows.  Given that purchasing a home is likely one of the largest investments a person will make, don’t skip this critical step.  If repairs are necessary, this can be negotiated with the seller before the final sale.

    Step No. 8: Prepare to close

    Once at the final step in the process, one can pat themselves on the back for a job well done. The closing table is the desired location where the deed will be transferred from the seller to the buyer. John Hancocks should be ready because there could be hours of paperwork. An attorney or settlement agent will most likely be present.

     

    May your new home be the happiest one on the block.

  • 5 Tips on How You Can Survive a Seller’s Market

    Searching for the perfect home can be challenging, regardless of the market, and even more so when it’s a seller’s market. It can feel like you’re constantly hitting roadblocks and meeting dead ends, as the sellers are in full control.  However, all you need is a bit of momentum, encouragement, and these five tips from our Ask a Pro expert Karlton Utter to survive a seller’s market and find your perfect home:

    1. Come to the Table Prepared with a Prequalified Loan

    Be fully prepared with a prequalified loan as soon as possible. Obtaining a prequalified mortgage shows sellers that you are a serious buyer who is able to meet your end of the sale to close the deal. This puts you on an entirely new playing field, with a little more control than what you would have had without a prequalified mortgage.

    2. Be Taken Seriously by Bringing all the Paperwork

    Show the sellers that you’re not kidding around. In a seller’s market, it’s important to show them that you mean business and that you and your offer should be taken seriously. Show up to the table with not only a prequalified loan but with all the paperwork that supports the proof of funds, such as an approval letter from the lender. Actions speak louder than words, and this will definitely entice the seller to work with you!

    3. Be Flexible and Discuss Compromising

    In a dry market, it’s important to remain flexible. Placing too many limitations on the real estate market will make it even more challenging to find a home. Widen your horizon within the real estate market, as this could introduce you to new homes that you would have never seen otherwise. Being more flexible can also make the process of buying a home easier. If you are hesitant to look outside of your pre-determined boundaries, it’s important to consider compromising. You may be required to give something up – such as a desired feature in a home – just to stay within the area you’re set on. Sometimes by compromising a little, you could have it all and possibly for less.

    4. Be Readily Available to Sellers as Much as Possible

    With so many buyers looking for homes, timing is essential. It’s important to remain readily available and open for communication with your sellers, and be prepared to make a move on an offer at a moment’s notice. Make it a goal to respond quickly and follow up on requests – or just follow up to get updates if you have not heard back. Communication is not only important for timing, but it also builds rapport with your seller. This can make the difference in getting the offer and property that you want.

    5. Don’t Play Hard to Get

    Now is not the time to play hardball. A seller’s market leaves very little control to you as a homebuyer. As such, you need to be willing to follow the seller’s lead, as opposed to challenging it with bullheaded negotiation tactics that work in other situations. Limit the contingencies, make a bold offer and if the sellers make a counter offer, proceed carefully by negotiating from there.

    With the proper approach, you can find your ideal home – at your ideal price – even in a seller’s market.