BUYERS
The Start….
Finding the perfect agent: Look for an agent that will listen and take your wants/needs into consideration. Do they answer their phone? Return calls quickly? They don’t need 500 years of experience but do you feel they are knowledgeable? Can they answer your questions? Do you feel comfortable with them or do you feel intimidated? Do they bring snacks on showings? (this is optional). You may be working together for several months!
The Money….
Financing is the all important second step. A mortgage broker will know different loans/programs. Conventional financing? VA? FHA? First time buyer? So/So credit? A broker will go over financials, credit etc. You don’t need a perfect score to qualify! Once your broker gives you a thumbs up, let your agent know. Your agent will need a PQF (pre qualification form) from the broker to submit any offer.
The Search….
Tell your agent what you want: price range, wants, needs, must haves. Close to work? Education needs? 4 beds but 3 will do? Pool? A room for mom? Home office? Pink Kitchen? Neon green carpet? Stairs? Parks? Bus stops? Make a list of what you must have, what you would love to have and any dream amenities. Your agent will set you up on a “drip” search with your local MLS (multiple listing service). The MLS is the most accurate and up to date.
The Contract…
Once you and your agent have found that “perfect pad”, your agent will generate a purchase contract and go over it with you. There will be terms such as offer price, how much you will put down, type of financing, earnest money (money that is deposited usually with the title company). This may be $1000 or $100,000: it depends on your situation. This money is held and is used towards your down payment. This is also generally refundable depending on the outcome.
The Inspection Period….
This is often a 10 day time frame where you, the buyer, can conduct any inspections you like: home, termite, roof etc. A home inspection is not required but very much encouraged. This is not an exhaustive inspection of every aspect of the home. It is a visual inspection, inspectors don’t move furniture, rugs, etc. and they check heating/cooling, electrical, plumbing, bathrooms, roof, windows, most appliances. You’ll get a report on what they find concerning. You will sit with your agent and generate a notice to the seller of items you’d like repaired. Pick out the items you are most concerned with.
The Appraisal….
Most loans/financing will require an appraisal. Different from an inspection in that the appraiser looks at values. How does your property hold up value wise to others that have recently sold in the neighborhood? This determined value will tell you what your soon to be new home is worth. Lenders will usually only loan on the appraised value. Both an inspection and an appraisal are fees you pay and they are non refundable regardless if you go through with the purchase.
“There’s No Place Like Home”
Dorothy (Wizard of Oz)