In this market you need to be pre-approved before looking at houses. Finding a Mortgage Professional is your first step, he/she can give you an accurate price range in which you can qualify. There is nothing more disheartening than getting excited over a home in which you are unable to obtain a loan or afford.
Use our Mortgage Calculator as a general guide to understand your affordability. Keep in mind, it is not a guaranty that you qualify for a specific amount, but can only suggest an idea of your price range, APR, down payment and monthly payments.
A Mortgage Broker will inform you how much down payment and monthly payments you can afford based on your income, credit, savings, etc. They will inform you on various mortgage programs currently available, which will determine your buying power. This price range will consider closing costs like: escrow fees, loan fees, inspections, taxes and miscellaneous charges. If you want assistance finding a Mortgage Broker, your Realtor can refer you to someone with a proven successful track record and history.
Find the RIGHT Home
Define your needs, then your wants. Make a list of priorities such as: location, size, lot size, number or rooms, bathrooms, amenities, etc. The more specific you are the more efficient this process will be for you. Your Realtor will also help you search more effectively, not just adding but multiplying your efforts..
If you are looking to live in your home for several years, buying one that you love is a deal in the bigger picture. If you like a property, chances are others will like it as well. If you are waiting for a super deal in this market, it will pass you by. Make your offer fair and fast! We will show you negotiate strategies when the time arrives. This is a tough lending market and multiple bidding is becoming more common given the low inventory. The seller will choose the most qualified buyer and sometimes you might be competing against the ever more increasingly cash buyers.
Your Realtor will submit a Purchase Contract to the Seller. He/she will inform you the best way to structure your offer. The cleaner the offer, the better the chance it will be accepted. The offer is time-sensitive and if it is a reasonable one, the Seller will either respond with a signed acceptance, or you will receive a Counter Offer. You have the option to accept the counter, submit a counter offer of your own or simply walk away. Remember...negotiating is not a winner/loser deal itís a win/win success. It is a business process that involves compromise and mutual respect which the desired outcome is mutual benefit.
Escrow Success! We are almost home. Now that you and the seller have agreed on the terms now we begin the exciting escrow process.
A professional licensed Home Inspector and your agent will inspect the home with you present. Upon reviewing the Inspection Report you will have several options. You can ask for repairs to be done or accept a credit, or you can walk away from the home and cancel the transaction within your contingency period. Your lender will have the property Appraised to assess the value of the property for a decision on your loan. If the homeís sale price and appraisal agree you are good to go, but if it comes in under value then you have more options. You can ask the seller for a price reduction or pay the difference or cancel the contract within your contingency period.
If all is in order, you will request a Home Insurance Policy in order to get a loan. Make sure not to increase debt while applying for the loan. This could severely impact your chance of receiving one. Once all the contingencies have been removed, such as Inspection, Appraisal, and Loan then you have committed to purchasing the house. After you sign the Loan Documents, lender will fund and the next day, title is transferred into your name and you will be given the keys to your new house.
We did it! You can begin the enjoyment of home ownership. You will take over the utilities, such as gas, electric, water, etc. Arrange to have everything transferred over on the day you take possession. Change the locks immediately upon possession and you are finally Home!