DECIDING TO BUY
Purchasing a property is most likely the biggest financial decision you will ever make. Property ownership is an excellent investment; whether you are looking for your dream home, a rental property, or to expand your investment portfolio. Owning real estate is one of the least risky ways to build equity.
Whether this is your first purchase or you are an experienced buyer, this decision must be made carefully.
Why Do You Want To Buy?
Are you tired of paying rent? Have you decided to pay your own mortgage and not your landlord’s? Have you outgrown your current home? Are you looking for an investment portfolio? Are you looking for a rental property? Would you like a larger yard? Would you rather live in a different area? Do you want to shorten your commute?
Having a clear sense of your reasons for buying will help you choose the right property.
CHOOSE A REAL ESTATE AGENT
Your first step is to research candidates and conduct interviews with potential agents. want to find an agent that fits your personality and communication style, as well as an agent who is familar with the area in which you’d like to buy. A full-time agent who actively helps people buy and sell will be the most up-to-date with current negotiation strategies and potential neighborhood quirks. A great agent will help you navigate all the steps in the home buying process, including getting pre-approved for a loan if needed, showing you properties, negotiating and reviewing the contract, and successfully getting you to the closing table.
Find a list of our agents here to select your own Realtor®.
Some factors to consider when choosing your real estate professional:
- Choose an agent who listens attentively to your needs and concerns. Pick an agent, with whom you feel comfortable.
- Look for a full-time agent – one who has experience completing transactions similar to yours.
- Interview a few agents: Are they familiar with the area in which you are interested?
- Does the agent return your calls promptly? Time is money when attempting to buy a property.
- Ask for recent client testimonials, a list of properties they have sold, and/or a list of references.
PREPARING TO BUY
Before you start shopping for your property, it is a good idea to make some preparations. It’s essential to get pre-approved before you begin shopping for a home.
If you’re not already talking to a lender you know and trust, talk to your agent about the best choice for you. Agents know the local lenders and can recommend specific people or companies depending on where and what you’re looking to buy.
Gather your files.
You will need to secure financing for your property. Locate all your important financial documents, such as the following:
- Financial statements
- Bank accounts
- Investments
- Credit cards
- Auto loans
- Recent pay stubs
- Tax returns for two years
- Copies of leases for investment properties
- 401K statements, life insurance, stocks, bonds, and mutual account information.
Check Your Credit Rating.
Your credit score will have a huge impact on what type of property you can buy, and at what price. It is first recommended to check your credit rating with an experienced lending institution so that you can determine what you can afford. The lender will research your credit ratings from the three credit reporting agencies Equifax, Experian and Trans Union.
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.
TIME TO GO SHOPPING
Now that you have chosen an agent and gotten pre-approved by a lender, it is time to find the right property for you. Discuss your wants and needs with your agent, and he or she will set up a search to find available properties that best suit you.
Take a Drive.
Get to know the neighborhoods, complexes, or subdivisions, which interest you. Drive around and get a feel for what it would be like to own a property in the area. Start getting a sense of the properties are available in those areas.
Narrow Your Search.
Select a few properties that interest you the most and have your real estate agent make appointments to visit them. Ask your real estate agent about the potential long term resale value of the properties you are considering.
Time to Buy.
Once you have picked out the property you want to purchase, your real estate agent can help you make an offer that the seller will accept. A good agent will investigate the potential costs and expenses associated with the new property. An agent can also help you draft your offer in a way that gives you the advantage over another offer.
WHAT HAPPENS AFTER AN OFFER IS ACCEPTED
Rest assured that your agent will be with you every step of the way! He or she will break down each task and help recommend professionals, keep you on track to meet your deadlines, talk you through options and explain the intricacies of the process.
Agents are excellent problem solvers. Your agent and their brokerage collectively have plenty of experience to fall back on regardless of what questions or concerns may arise.
Inspections.
Once your offer is accepted by the seller, we recommend having a licensed property inspector inspect the property. You may elect to have different inspectors inspect the property, if you wish to obtain professional opinions from inspectors who specialize in a specific area (eg. roof, HVAC, structure).
Your real estate agent can recommend inspectors best suited for your needs, just ask!
Depending on the outcome of these inspections, the buyer may request a renegotiation of the terms of contract, choose to walk away entirely, or proceed with the purchase. Be sure to ask your agent about the implications of option.
Appraisal, Lending, and Title.
Keep in close communication with your lender. He or she will let you know when additional documents are needed to approve your loan application and fund your loan. If the agreement is conditional upon financing, then the property will be appraised by a licensed appraiser to determine the value for the lending institution, via a third party. This is done so that the lending institution can confirm their investment in your property is accurate.
Appraisers are specialists in determining the value of properties, based on a combination of square footage measurements, building costs, recent sales of comparable properties, operating income, etc. When you are within two weeks of closing, double check with your lender to be sure the loan will go through smoothly and on time.
Now is the time to secure Title insurance. You may wish to consult an attorney or tax advisor on the best way to hold title. Different methods of holding title have different legal, estate and tax implications, especially when selling or upon death of the title holder. Ask your agent for a list of recommended Title Companies.
MOVING IN
Final Walk-Through Inspection.
The final inspection takes place a day before, or the day of the closing. You will visit the property to verify that all is in working order, everything is the same as when you last viewed the property, that there are no extra items left behind, and that everything included in your purchase is still at the property.
Closing.
You’ve made it! The inspection went well, your new home appraised at an appropriate value, and you’ve finally made it to the closing table!
Your agent will be right beside you as you bring your ID, transfer your money and sign all the necessary paperwork. The title will be transferred to your name and the mortgage finalized. After everything is settled, you’ll walk away with a new set of keys!
Home Services and Utilities.
Your agent can provide a list of useful numbers for the activation of home services and utilities after the closing occurs.
Additionally, your Fazendin Realtor has a list of recommended vendors for any services you may need as a homeowner. From painters, to movers, to various specialty technicians – your agent has a list of Jack and Jills of all trades. Just ask!