Buying a Home

Purchasing a home or property is one of the largest financial decisions you will ever make. Whether this is your first purchase or you are an experienced buyer, this decision must be made carefully. Every real estate purchase is different. Let our knowledge, experience, skills, and excellent communication guide you through the process.

Use the resources below to help you get started, and PLEASE don’t hesitate to reach out to us. We are here to help! We look forward to the opportunity to work with you.

Why do you want to buy?

Are you tired of paying rent? Have you outgrown your current home? Are you looking to invest in a rental property? Do you want more space from your neighbors? Having a clear sense of your reasons for buying will help you choose the right property.

We ask our clients questions and listen carefully to understand and determine what is important to you. Together, we then craft a customized detailed plan to help you reach your real estate goals.

Choosing a Real Estate Broker

Buying a property requires making important financial decisions, understanding complex issues and completing a lot of paperwork. It helps to have an expert in your corner when undertaking such a large purchase. We can guide you through this process, educate you along the way, and will listen to your concerns and needs.

Here are some factors to consider when choosing your real estate professional:

  • Look for a full-time broker, one who has experience completing transactions similar to yours.

  • Interview a few agents. Are they familiar with the area you are interested in? Are they professional?

  • Ask how much time the broker will have for you. Are they available at night and on weekends?

  • Ask about their credentials and education. A good broker will continually strive to improve and gain knowledge of the latest real estate trends, market conditions, and legal concerns on a national and local level.

  • Does the broker return your calls promptly? Do they communicate clearly?

  • Ask for a list of properties they have sold or a list of references.

  • Do they have a plan to help you obtain your real estate goals?

  • Choose a broker who listens attentively to your needs and concerns. Pick a broker you feel comfortable with.

Preparing to buy

Before you start shopping for a property, it is a good idea to make some preparations.

Build a financial file. You will need it to secure financing for your property. Typical items that should be included in this file:

  • Financial statements

  • Bank accounts and recent statements

  • Investments

  • Credit cards

  • Auto loans

  • Recent pay stubs

  • Tax returns for two years

  • Copies of leases for investment properties

  • Businesses owned

  • 401K statements, life insurance, stocks, bonds, and mutual account information

Set up a meeting with a Lender

Most properties are purchased with a loan. Working with a skilled and knowledgable lender is an extremely important part and key to a smooth transaction. Your Lender will guide and educate you through the process of obtaining financing for your property. They will use the information from your financial file, research your credit score, and request additional information to qualify you for an approved amount. We are happy to recommend skilled and knowledgable lenders in the residential, construction, and commercial real estate fields. You can view our recommended lender profiles in the LENDERS menu.

You have been Pre Qualified!

After meeting with your lender and supplying them with the required documents and information, they will be able to let you know if you have been pre qualified and for what amount. This helps us establish a budget for your prospective property and shows that you are a qualified buyer when it comes time to making an offer on a property. Now it’s time to start looking for a property!

Be careful with your finances

Now is not a good time to make sudden career changes or large purchases. You want to approach your property purchase from a position of financial stability. Your lender can advise you on what you should and shouldn’t do during this time. Thinking of buying a new truck? Opening a new Credit Card? STOP, call your lender first and ask them how this may affect your financing for your property.

It’s time to go shopping for a property!

You have done a lot of preparation, now it’s time to find the right property for you.

Take a drive. Take a walk. Get to know the neighborhoods or areas which interest you. Get a feel for what it would be like to own a property in that area. Do the available properties in those areas fit your needs? Are the schools close by? What is the commute to work from there? Are you able to check off most of your needs/wants? Do the properties fit your budget?

Narrow your search. Select a few properties that interest you the most and have your real estate broker make appointments to visit them. Ask your real estate broker about the potential long term resale value of the properties you are considering.

Making an offer

Once you have decided on the property you would like to purchase, your real estate broker will help you make an offer. A good broker will draft your offer in a way that protects you and gives you an advantage over another offer. They can also advise you on potential costs associated with purchasing the property and direct you to resources that may answer questions about the property.

Mutual Acceptance

Mutual acceptance happens when you have a signed legal agreement between a potential purchaser and the property’s seller.

All agreements between the buyer and seller during the transaction will be written and signed by both parties. We will assist you in drafting all of the necessary paperwork for your purchase.

You are now under contract and the clock starts ticking. You will have a timeline to follow and deadlines to meet that have been agreed upon in the contract. Meeting the requirements on time ensures a smoother flow of negotiations so that each party involved is not in a breach of their agreements. We will draft a timeline at mutual acceptance and update you constantly through out the process so you are always prepared and ready for the next step.

Escrow

Closing Agent

Either a title company or attorney will be selected as a closing agent. The closing agent will hold the earnest money deposit in escrow and will research the complete recorded history of the property to ensure the title is free and clear of encumbrances by the date of closing and that all new encumbrances are properly added to the title. Some properties are subject to restrictions which limit such things like building. Also, there may be recorded easements and encroachments which will limit the rights to use your property.

Inspection

Once there is mutual acceptance, you will have the opportunity to have an inspection performed if it was a written agreement in the contract. You may choose to have different inspectors evaluate the property for different areas; licensed professionals in specific areas like pest, structural, HVAC.

From here one of the following options can happen:

  1. Buyer gives notice approving the inspection(s) and waives this contingency

  2. Buyer gives notice disapproving the inspection(s) and terminates the agreement

  3. Buyer gives notice to conduct additional inspection(s)

  4. Buyer gives notice proposing repairs to the property or modifications of the agreement

Appraisal and Lending

It is very important that you keep in close communication with your lender during this process. They will let you know if and when additional documents are needed to approve your loan. If the agreement is contingent upon financing, then the property will be appraised by a licensed appraiser to determine the value for the lending institution. This third party evaluation is done so that the bank can confirm their investment in your property is accurate. Appraisers are licensed specialists who determine the value of a property based off of criteria like square footage and the recent sales of comparable properties in that specific market.

Appraisal has come back at or above value and met all conditions from the underwriter. It’s time to close!

Closing

Closing documents will be generated and the escrow company will set up a signing appointment with you. This appointment is usually several days before the closing date. Any final instructions for closing would also be given from the escrow company at this time. It is also common to do a walk through of the home/property with your realtor the day before or morning of signing to make sure it is in the agreed upon condition.

It’s Closing Day….the finish line is in sight!

Now you wait. Escrow will be balancing, receiving and distributing funds to and from all involved parties, and recording. You get the call or email…it has officially closed and recorded. Congratulations!!! You are now the owner!!!

*The information provided on this page is to be used only as a general guide for a real estate transaction. Always reach out to a licensed professional in their field for help. Every real estate transaction is different.