You have decided to buy a home.
Step 1 – Getting Financing
- If you plan to finance your home purchase, start the mortgage loan process well before starting your home search and before starting the bidding process.
- Investigate loan options that best suit you. Talk to financial institutions, mortgage companies and/or savings and loan institutions to look at what kinds of loans are available, and compare rates.
- If you are a first time or VA home buyer you may qualify for mortgage programs with little money down, low interest rates or federal programs that give preferentialinterest rates.
- When you have settled on a type of loan and a loan institution, get lender-approved and get a pre-approval letter and the contact information for you lender to your realtor. To do this, a loan officer will need to review your credit files anddiscuss with you how much you can borrow. This will help you determine what price range to consider when shopping for your new home.
- Having a reduced debt load and a good credit history will be helpful in getting a better loan and rate. You may wish to discuss with your financial institution, ways to improve your credit score to get an even better rate.
- Show your pre-approval letter to your real estate agent when you begin shopping for a home.
- Threets & Associates has several Preferred Lenders to get you pre-approved. Contact us for details and to start this process.
Step 2 – Selecting Threets and Associates
Most homebuyers enlist the services of a real estate agent or broker to help them with this complex process.A real estate agent is a person licensed by the state to handle real estate sales. A broker, also licensed by the state, is the person who may own a real estate company or has overall responsibility for the agent’s actions.
The buyer’s agent is generally paid a commission by the seller. This agent can research homes in your price range and with your specific needs in mind. Agents can preview the homes for you, narrowing the list for you to see saving you time and money. They will assist you in negotiations when you are ready to make an offer on a house. The agent will write up a contract that presents your offer and any terms you may require. The agent will presents the offer to the seller or their agent and negotiates any counter offers between you and the seller.
As with homebuyers, most home-sellers enlist the services of a real estate agent for a number of reasons:
- Threets & Associates has been selling real estate for over 15 years
- We will walk you through the Buying process from start to finish
- We know the market and can help you determine a reasonable price when offering on a home
- We will assist you with negotiations with the Seller
- We will review disclosures, Inspection reports and make sure all details are taken care of
- Threets and Associates will save you time, money, stress and aggravation
Step 3 – Maintain Great Credit
- Throughout the househunting process, you will need to maintain a good credit standing. A few tips to help you do just that include but are not limited to the following.
- Do not open any new loans, new credit cards, charge up existing credit cards or make any large purchases.
- If your credit is below par, there are companies that can assist with credit repair. Contact us for more details
- Shopping & Showing–If you find yourself looking at a lot of homes it can become easy to forget after a while what you liked or didn’t like about each home. In order to keep track during your house hunting process make sure you use theThreetsand Associates Home Comparison Chartfor each scheduled viewing.
Step 5 – Buyer Offer Process
So, you’ve found it – that perfect house that fits all your criteria in your price range and you’re ready to make an offer. Threets and Associates will assist you in deciding on the most appropriate offer.
- Sometimes it is OK to make an offer that is lower than the asking price, but if you are in a hurry to buy and your heart is set on a particular house or you know that there are other offers on the table you will need to offer the full asking price.
- Current market conditions suggest that the buyer be prepared to bid higher than list price. Try to remember chances are you’re not the only ones who have seen and/or desire this home.
- Whatever the circumstance, our professionals can help you decide once you’ve reached this point.Together, we will write an offer and present it to the Sellers or the Seller’s agent with your best and highest terms and conditions.
- Try to look at buying a home like buying art. Each one can be unique in so many ways and although we would love to get it at a steal, market desirability and competitive bidding will always prevail
Step 6 – Earnest Money
- Once you’ve determined your offer price you’ll need to decide on the size of the deposit to make with your offer.
- This earnest money deposit should show the seller you are serious, but not so large you are placing significant funds at risk because sometimes negotiations can take awhile and your funds will be tied up during that time.
- Threets and Associatescan help you decide the size of the deposit that is appropriate at the time of making the offer.
Step 7 – Seller Negotiations
Now that you have sent your offer and your earnest money deposit to the Seller,you will begin the negotiation stage with the Seller or their agent.
- Seller will have three choices: accept, reject or counter the demands made by the Buyer.
- Threets & Associates will handle this phase and advise you of any demands the Seller has. Once negotiations are complete and your final offer is accepted you will enter into the next phase, which is the escrow phase
Step 8 – Escrow
Now that your offer has been accepted, you begin the escrow phase. This is the timeframe set to complete your loan, all inspections and close out the transaction (transfer the property from Seller to you). Please remember that “Time is of the essence”. Failure to meet important timelines will place you in breach of your contact and place the Seller at a superior negotiating position.
- Threets & Associatesworks closely with your Lender, Title Company and Inspectors to complete the escrow phase.
- We will advise you of the important calendar dates (contingency periods), schedule inspections, appraisals and review disclosures with you.
- Once all inspections and appraisal are completed, the Buyer will remove all contingencies, provided there are no outstanding loan issues or inspection concerns.
- The Lender will order loan documents that require your signature.
- When loan docs arrive into Title you move to the next phase, signing and closing.
Step 9 – CLOSING!
Congratulations! It’s the big day!
- The day you go to the title or escrow company, sign your name on the dotted line, hand over a check and prepare to take ownership of your new home.
- The Buyer and Seller will pay “closing” or settlement costs, an accumulation of separate charges paid to different entities for the professional services associated with the buying and selling of property.
- Closing costs are allocated to the Buyer or Seller (separate charges) and paid to different entities for the services associated with the transaction. Closing costs include real estate commissions, appraisal fees, loan fees, escrow charges, advance payments like property taxes (city and county), homeowner’s insurance, title insurance, pest inspections, etc.
- Title also ensures and protects your ownership in the purchased property. The finer points of Title should be discussed in detail with the Title representative at or prior to signing.
- Your closing funds should be in the form of a cashier’s check made payable to the Title company in the amount requested, or by wired funds.
- Once you arrive at Title with your closing funds, you will sign the loan and title documents to complete the transfer of the property.
- In 2-5 days afterwards, Title will record your name as the official owner of the property.
Congratulations! You are now a home owner!