Most first-time homebuyers are overwhelmed with the prospect of purchasing their first home. They are not too sure where or how to begin.
On this page you will find many different articles and websites, which will guide you in the process of home buying. Please check out
Buyer's Tips for some good general information.
Securing the help of a Realtor, who acts as your Buyer's Agent, is the best way of assuring that the process will go smoothly and getting exactly what you want in your new home. The Buyer's Agent is obligated to help protect your interests to the best of their ability.
First-time Buyers will often drive around neighborhoods, checking out the homes they see for sale. It is also quite common for them to visit new home communities to see model homes. It is important for a Buyer to understand that in both these cases, the Realtor, representing the home for sale, and the new home community agent, are both obligated to work in the best interests of the Seller. Your Buyer's Agent will be working in your best interests and will be happy to show these types of properties to you, giving you guidance as to their overall quality and appreciation potential.
When I work with new clients, my first contact is usually by phone. In that conversation, I will attempt to find out the top items you would like in a home. For example: the number of bedrooms; whether you want a condominium, townhouse or a single family home and how far you want to commute to work.
Because Lenders vary greatly in their services. My job is to assist in educating you so that you feel comfortable interviewing Lenders. (There is a wonderful website,
Mortgage Professor, where you can find lots of good information about the lending process.) The Lender will then prequalify you according to your income and credit score. At this point, you will have several financing options to choose from. Of course, the final decision is always up to you. Once your housing budget has been established, we will then start the process of looking for a home.
The first meeting is a working meeting. We will see as many houses as time allows, which fit your criteria. This is often stretched out over several neighborhoods. You will be given detailed information on each home.
In order for you to feel as though you have found that perfect home, the process will be repeated until you find what you are looking for. Once we believe we have found it, we will go back a second or third time... just to be sure. By doing this, we greatly reduce the possibility of "Buyer's Remorse." The first visit is often filled with excitement and emotion; so subsequent visits give you a greater opportunity for a realistic evaluation of the property as it pertains to your needs.
Then we go into the negotiation phase of the contract. At that point, you will issue a check called Earnest Money showing "good faith" in your desire to buy the home. I hold this money until the contract is negotiated successfully, at which time it is deposited with the listing agents brokerage firm until the Closing. Your earnest money is held in an interest bearing account.
In negotiations, the Buyer presents the first Offer. Then, most likely, the Seller will present a Counter-Offer. This process will go back and forth as Counter-Offers until a successful agreement has been reached.Once that agreement has been reached, we have what is called a "Binding Agreement." From the Binding Agreement Date we begin the necessary legwork to make sure the transaction will be completed on time. You will be required to go to the Lender for loan application, usually within the first week.
Also within 5 business days, you will hire a Home Inspector to inspect the home for any defects. I always attend the inspection and strongly encourage the Buyer to be present in order to get a more thorough understanding of your new home.
After that inspection, as the Buyer's Agent, I will present the Inspection List, those items, which you are requesting the Seller to address and/or repair. At this point the Seller's Agent and Buyer's Agent work with their respective clients to arrive at a mutually agreeable resolution to the Inspection List. When these issues are resolved, the Inspection List then becomes the Inspection Amendment.
Once the Inspection list is agreed upon, we begin the countdown to Closing. During the remaining time frame, there are many tasks that both the Buyer and Realtor will complete separately in order to make sure the Closing goes smoothly.
For you, these will be things like responding to any requests from your Lender regarding your loan and getting things in order for your move. Here is a
Moving Planner, which gives a general timeline of what to do.
As your Buyer's Agent, I will be working to make sure all the loose ends are tied up. This insures that the Closing is occurring as scheduled. Some of these items are: checking on the repairs from the Inspection Amendment; making sure the Survey is clear and done in a timely manner; speaking with the Lender and Closing Attorney to make sure things are going smoothly; and, keeping in constant contact with you, the Buyer, as well as the Seller's Agent.
A few days before the Closing, you will receive what is called a "HUD-1," which is a federally-mandated form showing you exactly what your closing expenses will be and how much money you will need to bring to the Closing. Your Lender will be happy to go over this form with you to insure that all your questions are answered.
The night before the Closing we will complete what is called a "Walk Thru" wherein we inspect the home to make sure the necessary repairs on the Inspection Amendment have been completed and the home is in good shape.
From there we proceed to the title company's office to complete the Closing. This is the moment when you can finally call yourself a Homeowner!
I hope this information has been helpful. This is a birds' eye view of the process to help familiarize you with the home-buying process.
If I can be of any further assistance, don't hesitate to call or email me!
