Month: December 2016

Home buying doesn’t have to be as difficult as it’s made out to be as long as you have the right realtor giving you guidance and the right information along the way. To read the first part of this article click here.

Step 6: Make an offer

Once you’ve found a home you want, your agent will work with you to craft an offer. Remember that the listing price is just a starting point. Your agent will understand the market and guide you to make the most attractive offer, whether it’s below, at or above the listing price.

Step 7: Home inspection day

If your offer calls for a home inspection, this is going to be a big day. You will have the chance to have a home inspector look over the home to make sure there are no unseen defects you want to negotiate to have fixed. It’s also the most time you’ll get to spend in your new home until closing, so start planning and taking measurements for your move-in.

Step 8: Get insurance 

If you already own a home, you can quickly call your insurance agent and let them know you’re buying a new home. They will handle writing a new policy. If you don’t have an insurance agent, now’s the time to find one because your lender will require homeowners insurance. Even if you don’t have a mortgage, insurance is a critical part of protecting your investment.

Step 9: Closing day

This is the most important day before moving in and will involve a lot of paperwork. You’ll sign and read papers then sign and read papers even more. But remember though you’re just sitting around a table, you’re finally nearing the finish line.

Step 10: Get your keys and move in!

You did it! Your sale contract will specify when you get to move in. Sometimes it’s by a certain time on the day you sign closing papers. Sometimes possession happens a few days after closing. Whenever it is, you’ve just gone from home buyer to homeowner.

For more information on how to get the home buying process started, contact a realtor here that will work with you to make sure every step is covered. You can sign up for our FREE homebuyers handbook here.

You’ve thought it through and made the decision to buy a home. It can be a complicated, stressful process. But having the right realtor on your side that lets you know what to expect, can make finding your way to your new home easier. To help, here are ten steps involved in the home-buying process.

Step 1: Check your credit report and score

Before you get started, check your credit report. Having this on hand before you talk with a lender gives you a chance to dispute any errors in the reporting. The higher your credit score, the lower the interest rate on your mortgage.

Step 2: Figure out how much you can afford

Better yet, decide how much you’re willing to pay. Just because you can qualify for a larger mortgage doesn’t mean you want to have that kind of payment each month. Use a mortgage calculator to help determine what you can afford.

Step 3: Find a real estate agent

This person is your lifeline through the process. Your realtor is your chief advocate, hand-holder and confidante in this process so you want to find a good fit. Click here to contact one now.

Step 4: Get pre-approved by a lender

It’s a smart move to get pre-approved for a loan early in your home search. Pre-approval requires the lender to pull the credit information (see Step 1) and assess your financial situation. The lender will send you a letter that says the amount they are willing to lend you.

Step 5: Start looking at homes

By now you’ve talked things over with your agent and you both know what you really want and need out of a home. Armed with this, your price range and knowledge of the local area, look at listings online and with your agent, who will come up with properties for you to tour.

To read the continuation of this article, click over to Part 2 here. If you’re ready to contact an informative and experienced realtor for more information click here or take a look at our FREE homebuyers handbook here.

Having a basic understanding of important real estate concepts before you begin the home buying process will give you peace of mind now and could save you a fortune in the future. Here are five real estate terms you should know before looking for a home.

1. Buyer’s Agent vs. Listing Agent

Listing agents already have an established relationship with the Sellers.  Their duty is to sell the house in the quickest amount of time and for the highest price possible. It is better for Buyers to find a realtor who will work for their best interests and do their best to get the best price for the home.

2. Fixed Rate vs. Adjustable Rate Mortgages 

Conventional loans cover “fixed rate” and “adjustable rate” mortgages. A fixed rate mortgage has a set interest rate throughout the length of the loan; the most common typically last for up to 30 years. An adjustable rate mortgage has a variable interest rate; the most common being for 5, 7, or 10 years.

3. Pre-Approval Letter

Before you apply for a mortgage or before you even start looking for a home, you should receive a pre-approval letter from the bank. The letter is an estimate of how much the bank is willing to lend you. This is a huge help in determining what you can afford and ensures home sellers that you will be able to get a loan when needed.

4. Closing Costs

When you finally purchase your home, prepare yourself for several closing fees. Typically, closing costs will amount to 2-5% of the purchase price of the home, and that doesn’t include the down payment. Typical fees include excise tax, loan processing costs and title insurance. For more specific information on closing costs, contact your real estate agent.

5. Title Insurance

After all the negotiating is done and the seller has accepted your offer, you should receive a home title report in approximately a week. Mortgage lenders usually require you to pay title insurance as part of the closing costs; title insurers search the public records to make sure the seller has access to the title and that there are no liens on the home.

For more real estate terms and tips, you can sign up to receive our FREE home buyers guide here. If you still have questions or are ready to start touring homes, contact us here or call 407-493-0719, we would be happy to help.