Preparing to Buy

Homeownership is a fulfilling and rewarding opportunity. People buy for various reasons, such as wanting to put their money into their own mortgage versus landlords or your family is growing and you need a bigger space.

When buying, it is helpful to know why you are looking to buy and shop accordingly. It could be for an investment property to lease, you are ready to relocate to a different area, or you are looking for elite schools.

Owning property, whether it’s your dream home, a rental, or an addition to your investment portfolio, can bring great equity for low risk.

Prior to us going shopping for your property, you will need to get prepared. You may already know how important your finances are with buying a home. But what do you actually need? Items like your financial statement, bank accounts, investments, debt, tax returns, pay stubs, and any savings or investments are what most lenders will look for.

Lenders will also review your credit rating. This will affect what type of property you can buy and at what price point. They will take three credit bureaus into consideration: Equifax, Experian, and Trans Union. Research experienced LENDERS that can advise you through the process.

Now that you’ve gathered and reviewed your finances and credit, it’s time to manage your finances carefully. The lender wants to see financial stability. This means not making a career change or a big purchase right before or during the home buying process.

Consult with a real estate professional to walk you through the right steps in becoming a homeowner. Your agent should be knowledgeable about the current market, have a team of professionals in their corner to aid in the transaction, and listen to your wants and needs to align with your real estate goals.

Your realtor is also someone who you will communicate and spend a lot of time with. They should be prompt, effective, and educated.

For such a large purchase, it is wise to have an expert there with you each step of the way, ensuring everything is being done correctly, in a timely and cost-effective way.

You’ve gotten all of your requirements in line - it’s time to go shopping!

Part of the preparation is knowing your reason for buying a home. This may narrow down your search depending on the answer. With your realtor, do some research on areas that may fit your needs and get familiar with those areas by taking a drive through the neighborhood.

Once you’ve got a few neighborhoods and homes narrowed down, reach out to your realtor for showings. When you have your top picks, ask them for competitive analysis and resale value to help make your decision.

You’ve made your decision. Now it’s time to place a competitive offer. A great realtor will advise you on the cost and expenses of the property and help you draft an offer letter to give you a leg up on other buyers.

You have an accepted offer and are ready to move forward. Your realtor will help you stay on track during the escrow, inspection, and appraisal phase by helping you keep your records, ensuring the buyer and seller are complying with the contract, and are meeting the deadlines in order to close on the agreed upon date.

A title company and escrow will be selected as a closing agent. The closing agent holds the deposit in escrow. They will do their due diligence on the property to ensure it is clear of encumbrances by the date of closing. They will review the title report and make sure everything is clear for purchase.

Inspectors inspect the property to ensure it’s up to code and your standards of living. This takes place in the timeframe agreed upon in the contract. You will review the inspection report, and either decide it is satisfactory and move one step closer or you request items to be fixed and/or renegotiated the price.

Just like with your realtor, keeping a great line of communication with the lender is imperative to ensure you provide any documentation they may need and request to fulfill your loan request. The lender will request an appraisal to be completed to ensure they are not lending more than the house is worth.

When you are close to closing, reach out to the lender to ensure they have everything they need to close on time.

Closing day is soon approaching. It is time to ensure all of your i’s are dotted and t’s are crossed. You will do a final walk-through of your future home to ensure everything is the same as when you last saw the home. If changes were requested, those should be completed, no items left behind, and everything agreed upon in the contract is included.

Don’t become worrisome if last-minute setbacks pop up. You’ve gotten an experienced realtor there to handle things and see you through to close.

We’ve now made it to the closing table! The closing agent provides all parties with the settlement statement, which summarizes the financial transaction for the buyer and seller to sign. If working with a lender, you will need to sign their documentation as well. Funds for closing can either be wired to the escrow or bring a bank check.

Now it’s time for your keys and a celebration!