Getting Started
Whether this is your first home, or your tenth home, use the guide below for helpful hints and tips and learn how to avoid common mistakes.
PRE-APPROVAL
In the current climate of our market, it has become nearly impossible to get an offer accepted without a pre-approval letter or proof of funds letter. A pre-approval letter can be obtained by reaching out to a loan officer or mortgage broker. You, the buyer, will fill out a mortgage application, which entails supplying the lender with bank statements, past tax documents, your job history, and more; most applications can be filled out online. Once your application has been processed, the lender will be able to tell you the amount you are pre-approved for, supply an estimated cost sheet, and estimate your monthly mortgage payment.
PROOF OF FUNDS
If you are purchasing a home with cash, then a pre-approval is not necessary. Instead, you will need to supply a proof of funds letter from your respective financial institution to your Agent prior to viewing any properties.
ESTIMATED COST SHEET
Understanding your purchasing power, fees assosciated with closing day, and your mortgage obligation are key components of successfully and comfortably shopping for a home. Your lender will be able to create an estimated cost sheet, which will line item all fees, based on your ideal purchase price and/or monthly mortgage payment. Your Agent will also be able to create estimated costs sheets for you. Continue on to the "What are closing costs?' tab to learn more.
BUYER ORIENTATION
In tandem with applying for a mortgage, you will meet with your Agent for a Buyer Orientation. This is typically a one hour meeting geared towards explaining the buying process, details of the standard purchase agreement, setting expectations, establishing your home wish list, and getting to know each other.
PERSONALIZED HOME SEARCH
More than likely, you have been searching for homes online for quite awhile. The difference now is that your Agent will set you up on a personalized home search. Keeping your ideal area of town, budget, must-have list, and wish-list in mind, a custom email alert is curated just for you! This means that as soon as a property is listed on the market you will recieve an email notification alerting you of the fresh listing. From there, you can check it out online and if you love it, send your Agent a showing request.
ESTABLISH YOUR TIMELINE
Knowing your timeline is a vital step in the home buying process. Every client is different when it comes to timeline; some can purchase a home anytime, others need to make sure their purchase lines up with their apartment lease ending, a job relocation deadline may be putting the pressure on, and the list goes on! No matter what your circumstance please note that most mortgages take 30-45 days from time of accepted offer to closing day (this does not include the time it takes to look at properties or get under contract!). If you are purchasing a home with cash, the closing can occur in a matter of days.
ADDITIONAL COSTS TO PREPARE FOR
One of the biggest costs that buyers are unaware of is an Earnest Deposit. An earnest deposit is typically 1% of the purchase price of the home. This is due at the time of your accepted offer and will be housed by the title company you are using in the transaction. An earnest deposit is essentially your "good faith" in the transaction and will be shown as a credit to you on your final settlement statement. Other additional expenses that are due at time of service include any inspections that you are having completed on the house, if negotiated in your contract.
All the above may seem like a lot to navigate through, that is why having a professional Realtor represent you and keep track of all the details for you is highly recommended. Please contact us directly to get started!
