it's a process ...
When you make the decision to purchase your first home, you may be thinking “what’s next?” The home buying process can be easier and less stressful when you an experienced agent helping you navigate the steps to a successful closing. Your M and M Realty Group agent will be with you every step of the way.
PRO TIP: If you plan to finance your home purchase, start the mortgage loan process well before buying a home, even before the bidding process. For financing, you should speak with at least 2 to 3 lenders in addition to your financial institution, to see who can offer you better rates and terms. Rates and programs vary from lender to lender, as well as by loan program.
If you plan to finance your home purchase, start the mortgage loan process well before buying a home, even before the bidding process.
Check out loan options that best suit you. Talk to financial institutions, mortgage companies and savings and loan institutions to look at what kinds of loans are available, and compare rates
If you are a first time home buyer you may qualify for mortgage programs with little money down, low interest rates or federal programs that give beneficial rates
When you have settled on a type of loan and loan institution, get pre-approved and get a pre-approval letter. To do this a loan officer will review your credit files and discuss with you how much you can borrow. This will help you know the price range you can consider when shopping
Having a reduced debt load and a good credit history will be helpful in getting a better loan rate. You may wish to discuss with your loan officer if there are any ways you can improve your credit score to get a better rate
Show your pre-approval letter to your M and M Realty Group agent when you begin shopping for a home
OFFERS AND COUNTER OFFERS
You found the perfect house that fits all your criteria and your price range, and you are ready to make an offer! Your M and M Realty Group agent will discuss what is the best offer to make. Sometimes it is OK to make an offer that is lower than the asking price, but if you are in a hurry to buy, your heart is set on a house, or you know there are other offers on the table, you may want to offer the full asking price or more. Your M and M Realty Group agent will help you decide. Your agent will write up the offer and present it to the sellers agent with your terms and conditions. At this point you will want to make a down payment called Earnest Money.
Earnest money is a deposit made to the title company that represents a buyer’s good faith to buy a home. The money gives the buyer extra time to get financing and conduct the title search, property appraisal, and inspections before closing.
Once you have determined your offering price, you will need to decide on the size of deposit to make with your offer. The earnest money deposit should be large enough to show the seller you are serious, but not so large because sometimes negotiations can take awhile and your funds are tied up during that time. Still it depends, like your offer, on the condition of the market and your M and M Realty Agent will be able to help you decide the size of the deposit that is appropriate.
Now that you have sent your offer and your earnest money deposit, you will begin the negotiation stage with the sellers agent. Generally your M and M Realty Group agent will handle this phase and will advise you if the seller has rejected any of the demands / requests you submitted in your offer, as well as any demands /requests the seller is making. Once your negotiation is complete and your final offer is accepted, you will enter into the next phase, which is the escrow phase.
Items that can typically be negotiated include:
- Final sales price
- The inspections to be completed
- Who will pay certain closing costs
- When the closing date will be and when the transfer of ownership will occur
- Special considerations of things to be included or excluded from the sale
- Special considerations such as repairs that are not part of an inspection
A Home Inspection is an important part of the homebuying process and should be included as part of your negotiations. Once an offer is accepted, the inspections can be done and any findings will be resolved before closing.
Note: Inspections vary by County – your M and M Realty Group agent can advise which inspections are required, the costs and details about each of the inspections.
- Physical Inspection – Typically done by a general home inspector, a physical inspection is a visual review of the overall condition of the property.
Other Inspections include:
- Geological Inspection
- Structural Pest Control Inspection
- Property Hazard Disclosure Inspection
- Well and Septic
- Water Conservation
- Structural Engineering
- Chimney Inspection
- Heating and Air Conditioning
- Zoning and Building Permit Compliance
- Energy Audit
- Roof Inspection
- Pool / Spa Inspection
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