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Buyers

TIPS FOR HOME BUYER


Why should you buy instead of rent?

BUILD EQUITY – Money paid for rent is money lost, but mortgage payments build equity in your home.  It’s an investment!

FREEDOM – The home is yours, so you can remodel, redesign, upgrade, paint, etc.  Your imagination is your limit.

Now let’s walk through a typical deal from beginning to end…

  • Buyers DO NOT pay realtor fees for standard residential purchases!
  • Mortgage pre-approval should be your first step.  This will give you a clear idea of your purchasing power, and you will also be ready to make that offer when you find your home. Know what price range you can comfortably afford.
  • Now it’s time to look for your dream home.  Seek and you shall find!  When you start your home search, be clear on your needs vs. wants. Eg: a living room vs. a swimming pool.  This will allow for more options and make the process a lot smoother!
  • If you love it, make an offer right away!  Desirable homes don’t wait around, and the early bird gets the worm really applies here.  Also, $10K seems like a lot, but if you are spreading it over a conventional mortgage loan of 30 years, it is less than $50 a month.  
  • If your offer is accepted by the seller, then it will be submitted to a Real Estate attorney of your choosing.  This means it will become Attorney Review in Progress (ARIP), and sellers can still show and accept other more competitive offers.  So, choose an attorney that will put your offer Under Contract as soon as possible so that it becomes binding on the seller.  Once it is Under Contract (UC), the listing will also be pulled from public Real Estate sites and searches.
  • A friendly reminder, NEVER EVER wire any money to anyone associated with your transaction!!!!  You should prepare checks and drop it off with your attorney for down payments.  Never anyone else.  
  • As soon as your offer is with the attorney, you must contact your mortgage lender to let them know which property you are buying as well as lock in your mortgage rate.
  • Now you are Under Contract and have 10 days to do a home inspection.  A home inspector of your choosing should be your next call!  Don’t wait until the last day, try to schedule it as soon as possible so you have time for negotiations, if any.  Your presence during inspection is optional.
  • The home appraisal, what your home is worth to the bank, is typically scheduled by the mortgage lender directly with your real estate agent.  This is a 15-minute meeting, and your attendance is not required.
  • Once the appraisal is completed, your Mortgage lender will notify you of your appraisal amount and mortgage commitment status.  Getting all your paperwork to your mortgage lender as early as possible is crucial for a timely closing!
  • After your mortgage commitment is issued, time to shop for a homeowner’s insurance, and schedule your utilities with the local providers of your new home.  This should be done two weeks prior to closing.  
  • When you are cleared to close by the mortgage lender and attorney, your real estate agent will schedule a final walkthrough right before you sign and take ownership of the property.  This is your opportunity to make sure all the agreed repairs, if any, are completed, and the home is left in “broom swept” condition.  
  • Now you are ready to sign with the attorney, get your keys and move in!
  • If there are no delays, the timeline from going Under Contract to closing is typically 60 days.

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