Buying a home is one of the most important investments you will ever make
with your time, money and effort. Knowing what to expect helps to take some of
the anxiety out of making that investment.
Taking the time to be organized will help you buy with confidence.
If you are
going to need a mortgage, shop for a lender first. Ask friends, relatives,
co-workers or your real estate agent for recommendations. Talk to several
lenders to find out what they have to offer. Different companies can write
different kinds of loans and a good lender will be looking for the best type of
loan for your situation. Be careful about allowing too many lenders to pull your
credit report. Even though you may never taken out a loan with that creditor, to
many inquiries into your credit history can potentially have a negative effect.
Determine
how much home you can afford. Most reputable lenders will "pre-qualify" you for
a mortgage with a phone call. This will tell you what price range to shop for a
home in. This is an important first step. It allows you to look for homes that
you can afford and eliminates the possible disappointment of looking at homes
that are out of your price range.
Check your
credit report. There are several web sites now that will allow you to check your
credit report on-line. Be careful to use one from a legitimate source. If there
is any misinformation on the report, begin immediately clearing that up. This
will save you time with your loan application. If you need to make a loan
application before it is cleared up, most loan agents will assist you in
straightening out problems.
After
pre-qualifying, decide if now it the time for you to buy. If it is, take the
next step and fill out that loan application. Gather all of your financial
information, as it will be needed by the lender. Your lender will ask you for
things such as income and asset verification and tax records. Get pre-approved
for a loan. This is buying power. It means that the lender has looked at your
personal financial information and determined they can make you a loan. Ask them
for a commitment letter. Sellers may ask for a commitment letter before
accepting an offer on their home.
Choose a real
estate agent. Preferably one from Teel and Waters. Ask for referrals from
friend, family and co-workers. A good real estate agent will be able to find you
the homes that are on the market that suit your needs. Look for a professional
that knows the market area. Talk to them about your minimum requirements in a
home and about the desires of your heart. They can help you determine if you are
being realistic in your house hunting. Remember: no agent represents you until
you decide to engage their services.
Now you can
start looking for a home. The real estate agents at Teel and Waters have access
to information through our local multiple listing service in all areas of
Okaloosa and Walton Counties. In just a few moments, we can have a list of all
current listings in your hands. We also have the capability of emailing you with
new listings as they become available.
From the homes
available, decide which ones appeal to you. Schedule an appointment with your
agent to go look at the homes. TAKE NOTES. One mistake buyers make is not paying
attention to detail in homes they may want to buy. Take notes on the homes that
interest you. Write down things you like and things you might want to change.
After looking at several homes, you may forget which feature you liked best
about each home. This will help you narrow your search and focus your decision
making process.
You found it. It
is the perfect home for your family. You are ready to make an offer. Meet with
your real estate agent. Be prepared to sign an offer to purchase and deposit
money into escrow. The amount of the escrow deposit can be discussed with your
agent. Different properties will require different escrow amounts. As a rule of
thumb, $1000.00 or 1% of the purchase price is to be expected. Make sure you
understand all documents that you sign. Your agent will present the offer to the
seller's agent. The seller can accept, decline or submit a counter offer. Your
agent will handle the negotiation process for you, based on your
instruction.
The offer is
accepted. Your agent will assist in coordinating the inspections, repairs, and
closing details.
There are many
different aspects involved in closing on a home. Most lenders require an
appraisal, a termite inspection and a survey at the minimum. This helps to
insure you and them that the home meets the value of the mortgage. They will
also require title insurance. The title company will research the property for
possible defects in the title and insure against their findings. They will also
coordinate the closing for you.
You will receive
a copy of a closing statement. This is normally ready one to two days prior to
closing. Even though your agent should be able to give you an estimate of what
it will cost you to close, this document is the final figure and is prepared by
the closing office. Be prepared to come to the closing with a cashier's check
for the required funds. .
Schedule a final
walk through on the day before closing. Check the property thoroughly. Once you
close on the property, it is yours. The seller will normally not have any
further obligation for repairs after the closing occurs. If you find a problem,
make sure it is resolved prior to closing.
Come to closing
prepared to read and sign. Never sign any paperwork that you don't understand.
The closing agent should be able to help you understand the paperwork. If you
are not sure about something, consult a professional. Real estate agents are not
attorneys and cannot give legal advice.
Have the
utilities turned on, move in. Enjoy!
