Buy Your First Home
GUIDE THROUGH THE HOME BUYING PROCESS!
Note: Each borrower and their loan are unique. This is a general overview and will differ case by case.
1. DECIDE!
Make the decision that it is time to own your own home!
2. TALK TO YOUR REAL ESTATE PROFESSIONAL.
Find the professional to represent you in a transaction to purchase. REMEMBER, you wouldn’t go to your mechanic to help You if you needed surgery. Count on a trusted professional to work on your behalf. Stay in communication with your agent & leave it to that agent to communicate your best interest with other parties, especially other agents, sellers, and others that will not necessarily have your best interest in mind. Keeping your financial information confidential! Be straight forward & honest with your representing agent. It will help you find what you are looking for.
3. Be prepared to provide your agent with proof of ID.
There are many scams out there! Be willing to Show that you are who you say you are.
4. PRE QUALIFY
Save yourself aggravation, disappointment & time! Pre-qualifying will give you an idea of roughly what you will be able to receive for a home loan.
Ask your real estate professional for a few trusted lenders that work in the area you are looking. Those that know the local market. They will be able to tell you about any special programs that you may qualify for.
Once you know how much you are qualified for,(and also where you prefer to keep your payments at to feel comfortable with each month), your agent can start helping you zero in on what you are looking for in a property. When you are pre-qualified, sellers take you more seriously.
5. Do NOT make any changes to your credit
IMPORTANT! After you have gone through the process of being pre-qualified, BE SURE YOU Do NOT make any changes to your credit (large credit card purchases etc.).
Many times people will try to buy appliances, equipment etc. prior to closing and prevent the closing from happening because credit scores or debt/income has changed. BE PATIENT & WAIT!
6. DEFINE PROPERTY CRITERIA FOR SEARCHING!
What your property criteria is: must have, want… See next page to make a list.
Research the towns you'd like to be in: schools, shopping recreation, proximity to amenities, internet service…. If you see something online or in your travels that is of interest, Provide your agent with address, town, mls # and let them find out more for you.
7. YOU HAVE FOUND “THE ONE”
Its best to see the property in person!
8. HAVE AN ATTORNEY
Have an attorney in mind or ask your agent for referrals. You will want to have an attorney review any documents and perform title work for you. You can contact the attorney to make sure they can fit you into their schedule. Let them know you are in negotiations and you/your agent will be in touch.
9. HAVE YOUR AGENT PUT AN OFFER IN WRITING!
This is the time to discuss any necessary conditions/contingencies. Will you require inspections (ask agent for suggestions of inspectors), water test, does it need to be contingent upon selling another property, Requirements for closing/possession dates and others.
BE SURE TO REVIEW THE DOCUMENTS AND ASK QUESTIONS IF YOU ARE UNSURE OR NEED FURTHER EXPLANATION.
10. NEGOTIATIONS
When you have made the offer, allow your agent to do the negotiating. Sometimes in conversations, we can tell more than we intend to and can cause a result of which may not be in your best interest. When the negotiating is complete and an offer is accepted, you will provide the deposit (according to the accepted contract details).
11. COORDINATE APPOINTMENTE
Your agent will coordinate appointments for inspections, water test, and appraiser as well as make sure lender and attorneys have contract documents to proceed. You will also have copies of these documents digitally.
12. FINAL LOAN APPROVAL
Once the lender has the offer and your loan file is started, we will work together to make sure everything needed is attained and the loan can then be reviewed by the Underwriter. Keeping in close contact with your loan officer about the status of your loan will ensure the fastest route to final approval.
13. TITLe SEARCH
In the meantime the attorney will do a Title search as well.
14. UNDERWRITER
The underwriter will review the file & will let us know if anything else is needed. Once satisfied, a Commitment or Conditional approval/ will be issued.
15. CLEAR TO CLOSE/ FINAL WALKTHROUGH!
A commitment from the lender and you'll be given a chance to walk through the home one last time to make sure it is in same condition as when you signed the agreement.
16. SETTLEMENT!
Closing is Scheduled: sign loan documents , fund the loan and