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Monday, February 10, 2014

10 steps to buying a home

I have a "14 steps to Home ownership" outline which I give to my clients as we meet to complete the signing of their initial application paperwork.  There are 14 steps AFTER your offer to purchase a home gets accepted.

However, I realized that there are "10 steps to buying a home" that would help if you are just BEGINNING the process of purchasing a home.  This list contains important steps in the process  whether you are purchasing your first home, downsizing, or needing a larger home.

If you have further questions or if you would like to get your credit approval letter into place so that you can be a serious negotiator of sales price and asking the seller to pay for your closing costs, call me today and we can get started!

  1. Determine your readiness-Are you in a rental or lease agreement, or are you on a month to month agreement?  Do you have money saved for a down payment (there are 100%, ZERO down programs available, call me for details).  Do you know what you qualify for based on your income and debts (this is something I can help with over the phone, call me). 
  2. Become an optimal mortgage candidate-If your credit is "young" or you are rebuilding your credit, I have a "Credit Monitoring Program" I can refer you to that is an excellent tool for you to use!  
  3. Get a pre-approval letter- My clients receive a FULL Credit Approval letter which is backed by a 3 bureau credit report AND an Automated Underwriting System decision.  This type of Credit Approval is what you need in the Mortgage world that we are currently in.  There can't be any guesswork in the mortgage process, you NEED a credit approval letter to have your loan successfully close! 
  4. Determine your budget- I can help you to figure out what is REALLY a comfortable payment for you considering what your current debt structure is.  What I tell you might really surprise you!
  5. Find a Real Estate Agent- If you have been referred to me by an agent, I am thankful you have found them!  If you need one and don't have a "buyer's agency agreement" with another agent, we can find a great match for you with an agent who I work closely with if that is something you need help with.  
  6. Select a property- Your agent will help you with this by showing you options of homes, in a geographic area, of homes that we have determined would be in your payment comfort zone.
  7. Make an offer- Again, your agent will help you with this process and your agent will utilize the FULL Credit Approval Letter to negotiate favorable terms (purchase price and seller paid closing costs) with it. 
  8. Inspect the home- Most times your agent will have a recommendation of a great home inspector who will walk through the home with you and prepare a report and give recommendations of current and future points of home condition to consider in your purchase decision.  There may be "counter offer" items of repair at this point that you would go back to the seller with and your agent will assist you with this.  
  9. Sign a purchase agreement- This is when things begin to get very exciting and potentially stressful.  You agent will hold your hand during the process (keeping stress LOW!) and work with you to make the right dollar offer while they consider the market value of homes similar to yours that have sold recently.  This is a market analysis and your agent will help you with valuation and condition issues you should address in your offer. 
  10. Close the transaction- You are now at the VERY exciting point of your home buying process!  You are now signing your loan documents and deed of trust so that you are a home owner!!!!
I look forward to helping you with your mortgage questions and needs!