10 Steps to Home Ownership
1. Contact a real estate agent. A professional agent can assist you with most of the following steps and knows the local market, paperwork and process to purchase a home better than anyone.
2. Contact a lender. Your real estate agent should be able to provide you with a name or several names of mortgage counselors that have a great reputation for competitive rates, timely and professional service.
3. Make a list. Now that you are comfortable about how much you can afford, make a list of what you need and want in your new home. It may be you will end up giving up a want for a need in order to stay in your price range. Give your agent the list and have them research available homes on the market for those that match or closely match your criteria. 4. View the homes. Now is the time to compare apples to apples. What is the condition of the major mechanical items of the home? Does the home need cleaned and updated? Does the neighborhood look friendly? How are the schools? Are you close to all the major shopping and services that are important to you? Take your time and view as many homes as you need to make the most informed decision.
5. Get an accepted offer from the seller. If you find the right home, now is the time to make an offer that both you and the seller can work with. Trying to low ball or steal a home will often frustrate the seller and may put you in a worse bargaining position than starting off with a fair offer. Ask you agent to show you recent competitive sold data for the area. How long has the home been on the market? Are they offering buyer concessions? Take all this into account when making your offer and you should be able to reach a mutually agreeable contract with the seller.
6. Ask the experts. You have a contract in place. Now is the time to start the process that will lead to your closing day. You need to talk and compare rates with home insurance companies. Hire a survey company to clearly define the boundaries of the home. Receive an energy efficiency report. Pay to have an appraisal done on the property to determine value for the lender. Hire a WDO and whole house inspection company to make sure that there are no repair issues that need addressed prior to closing. Talk with your agent about what other inspections and reports you should hire an expert to accomplish for you.
7. Dot your I’s and cross your T’s. By now your lender is deep into your loan approval process. You most likely have received forms that need initialed and signed. There are bank and tax documents that the lender has asked for from you. Move quickly to get these items take care of. A delay in providing the information requested could result in a delay in closing or an increase in your interest rate.
8. Get your ducks in a row. Ok, mortgage and inspection issues are resolved. Now you need to finish up making arrangements for the movers. Schedule utilities to be turned on in your name as of closing. Do you need new window coverings’ measured? Verify that your home warranty has been ordered and will be in place as of closing.
9. Show me the money. The closing day is upon you. Have you seen the HUD statement? Make sure to get a cashiers or certified check for the balance you need to bring to closing or have made arrangements to wire the balance into the closing companies escrow account.
10. Closing day. Your agent will give you information on where the closing will be held. Arriving a few minutes early will provide you and opportunity to exchange pleasantries with the seller. Your agent will be able to go over any last minute forms or addendums for you to review. Be sure to bring proper photo ID and balance of funds to close.
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