Welcome back to The Weekly Update! I hope your May has kicked off to a wonderful start. We have a lot to cover, so here’s what we have this week.
It’s our buyer edition! For those who have never bought a home, or just need a quick refresh on the process, we’ve got it here for you. And as always, we have our Listing of The Week. I hope you enjoy!
Buying a Home: Where do I start? What’s the process?
Aside from being one of the biggest purchases, you’ll ever make in your life (if you’re not counting student loans) the home buying process can be tricky, and not always as it seems. It’s more than seeing all types of different homes, and a quick call or two before having an agent tell you that you have an accepted offer. So, let’s break down the process!
Firstly, you’re a team! You, your agent, and your lender/bank. Everyone needs to work together to make sure that important deadlines get met so that you can get rolling. This usually starts by finding either a lender, then an agent, or an agent then a lender.
If you’ve contacted a lender first, you may already have a pre-approval; where the lender looks deep into your background to figure out how much home you can afford in comparison to what you make in a year, credit score, and debts. (to know more in-depth about the pre-approval process, please speak to a lender-I don’t claim to be one!) If you’ve contacted your agent first and you’re not sure who to go to, ask them for a recommendation, but feel free to vet them; this is a big purchase, and you want to make sure you have the lender who can get you the best rate, and the lowest possible mortgage payment, so shop around!
After you’ve gotten pre-approved, you can begin to tell your agent what you’re looking for. Where are you looking to live? What is of the utmost importance to you? Create a list of needs that you can’t budge on, and some ‘wants’ that if you do/don’t have them, won’t be a deal-breaker. Needs may include things like a minimum number of bedrooms and bathrooms, or a layout style (ex: you don’t want a small kitchen, you want a big backyard, etc.) while wants might be smaller things. (I’d like to have a finished basement, but it won’t kill me if there isn’t one.)
This is different for everyone, so take a bit to think about it. If you’re looking with a partner or spouse and feel like you’re on different pages, have each of you make a list and see where you have common ground. Once you have a set of needs and wants drawn up, this is where the fun begins!
From there, you’ll begin to see homes you like that fit the idea of what you’re looking for and figure out what you like and don’t like. Once you find the one, you’ll write your offer! There’s going to be some timelines to be aware of in your offer, which your agent can explain in more detail. But to go over them quickly:
- Binding Acceptance.
- Earnest Money.
- Inspection contingency.
- Testing Contingency (if there’s any other testing aside from a home inspection you’d like done; for example, radon testing.)
- Appraisal.
- Loan Commitment.
- Final Walkthrough.
- Closing!
All of these deadlines are important and missing one can cause a deal to fall apart. As the buyer, you just need to make sure to keep in touch with your lender and your agent! The more you communicate, the better.
Once you’ve met your timelines and have negotiated on anything else pertaining to the deal, you’ll be waiting for your clear to close from the lender.
After this, you’ll be at your closing date! You’ll most likely have a final walkthrough of the home done beforehand to make sure the house is the same as you initially saw it.(i.e, no holes in the walls where there weren’t before, a now flooded basement, etc., etc.,)
From there, you’ll go to wherever you’ve agreed to close, and a title agent will walk you through your paperwork, and anything you’ll need to sign. Make sure to bring a driver’s license and any monies to the closing table that you’re supposed to. The title company can tell you what you’ll need to bring specifically.
After you’ve closed, celebrate; you’re a homeowner!
Listing of The Week
Price: 82,000
Beds: 2
Bath: 1
Sq Ft: 940
Annual Taxes: $1,955
Description: Quaint and charming Bungalow! Sporty with plenty of room to roam, this sweet beauty is located near schools, shopping and houses of worship; convenience at your fingertips. Custom woodwork throughout enhances this gorgeous home's appeal. Come see, you won't be disappointed!
Learn more about this lovely home here