Step 1
Step 1
DETERMINE HOW MUCH YOU CAN SPEND
Step 2
SAVE FOR A DOWN PAYMENT
Step 3
CHECK YOUR CREDIT
Step 4
GET PRE-APPROVED FOR A HOME LOAN
In order to be pre-qualified, a lender may or may not check your credit score and won't require documentation, only going off what you tell them. This will give you an idea of what you could qualify for, but when you're serious about buying, you'll need to get pre-approved.
To be pre-approved, the lender will pull your credit and ask you for documentation to verify your finances. Before making an offer on a house, it is best to get pre-approved to show sellers your offer is serious and that a lender has already approved you for enough money to purchase the home.
The most common type of home loan, which is offered through private lenders.
Loans designed for those with high debt-to-income ratios and low credit scores, and most commonly issued to first-time homebuyers. Offered by FHA-approved lenders only and backed by the Federal Housing Administration.
Loans designated for veterans, spouses, and reservists, offered through private lenders and guaranteed by the U.S. Department of Veteran Affairs
Loans for homebuyers in designated rural areas, backed by the U.S. Department of Agriculture.
To determine loan eligibility, lenders typically require the following types of documents from each applicant:
Determine the features you are looking for in your ideal home and prioritize which items are most important to you. No house is perfect, but this will help us find the best match for you.HOUSE WANTS & NEEDS LIST
When we have found a home that you're interested in buying, we will quickly and strategically place an offer. There are several factors to consider that can make your offer more enticing than other offers:
We will decide on a reasonable offer price based on:
Paying in cash versus taking out a loan offers a faster closing timeline and less chances of issues arising, making it more appealing to sellers.
An offer that includes a larger earnest money deposit presents a more serious and competitive offer.
Include a letter to the sellers with your offer, letting them know what you love about their home. Adding this personal touch can give you an advantage over other offers by making yours stand out from the rest.
An offer with a shorter timeframe for closing is generally more attractive to sellers over one with an extended time period with a house sale contingency. A typical closing timeframe is 30-45 days.
Once you and the seller have agreed on terms, a sales agreement is signed and the house is officially under contract and in Escrow. Here are the steps that follow:
It's extremely important not do any of the following until after the home buying process is complete:
Any of these types of changes could jeopardize your loan approval. It's standard procedure for lenders to also do a final credit check before closing.
Most lenders require both homeowner's insurance and title insurance. See following pages for more detailed information on each of these.
At least 3 days before closing, lenders are required to provide you with a Closing Disclosure with your final loan terms and closing costs for you to review. Closing costs for the buyer typically range from 2-5% of the purchase price, which can include lender fees, lender's title insurance, and HOA dues if applicable.
Within 24 hours of closing we will do a final walk through of the home before signing the final paperwork. This last step is to verify that no damage has been done to the property since the inspection, that any agreed upon repairs have been completed, and that nothing from the purchase agreement has been removed from the home.
Homeowners insurance protects your home and possessions against damage and theft and is required by lenders before finalizing your loan. Policies vary and are completely customizable, so it's recommended to get quotes from multiple companies to compare price, coverage and limits.
Homeowners insurance typically covers destruction and damage to the interior and exterior of a home due to things like fire, hurricanes, lightning, or vandalism. It also covers loss or theft of possessions, and personal liability for harm to others.
Most policies do not cover flood or earthquake damage, and you may need to purchase an additional policy for this type of coverage.
Rates are mostly determined by the insurer's risk that you will file a claim. The risk is based on your personal history of claims, frequency and severity of claims, past history of claims on the home, as well as the neighborhood statistics and the home's condition.
Many insurance companies offer discounts to seniors, and also to customers who have multiple policies with them, like auto or health insurance. Having a security system, smoke alarms and carbon monoxide detectors can also lower annual premium rates. When getting quotes, be sure to ask each company about their discounts and cost savings options.
Title insurance protects the lender and/or homeowner from financial loss against claims regarding the legal ownership of a home.
There are two types of title insurance: one for lenders and another for homeowners. Lender's title insurance is required by lenders but it does not cover you. A separate homeowners policy is needed to protect yourself from a claim on your home, and from being held financially responsible for possible unpaid property taxes from previous owners.
While most lenders require a title search, the title insurance ensures that if anything is missed during the search, those insured will be protected if any legal issues arise.
Title insurance is a one-time fee that is paid at closing, which costs between $500-$3,500 depending on the state, insurance provider and the purchase price of the home. Some companies will offer a discount if you bundle the lender's and owner's policies, but typically the buyer purchases the lender's policy and the seller pays for the owner's policy.
On the day of closing you'll be going over and signing the final paperwork, and submitting a cashier's check (or previously arranged wire transfer) to pay the remaining down payment and closing costs.
Items to bring to closing:
Get assistance in determining current property value, crafting a competitive offer, writing and negotiating a contract, and much more. Contact me today.
