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Before You Buy

 

Thinking about purchasing a home?

Many perspective homebuyers work back wards when considering buying. They find their home then struggle uphill to make the purchase close. The smart consumer will use the following steps:

1.               If you are under a relocation check with your company relocation department.

2.               Interview and select one Realtor to represent you as your exclusive “Buyer’s Agent”, and stay in contact with your agent.

3.               Do you need to sell a home first? Discuss this with your agent.

4.               Get pre-approved for your financing. Your agent can assist you in your financing options and references.

5.               Tour various neighborhoods and select a neighborhood you desire to purchase in which will suit your budget and family lifestyle. Your agent will assist you with this.

6.               Understand the purchase contract before you fall in love with the home. This will allow you time to obtain further explanation of terminology and time restraints. And if necessary, consult your CPA or attorney.

7.               Understand how your credit may affect your purchase and clear up any discrepancies before the 11th hour.

8.               Insure that the money you will be using for your down payment is ready when you are ready to purchase. Discuss this with your lender and agent.

9.               When you are ready to make an offer tell your agent. Set aside quiet time to go over the contract. If necessary arrange for a baby sitter. At this time you will need an initial down payment which will be deposited into escrow as your “good faith deposit”.

10.           From the time you are under contract until you actually close will be depended upon your escrow time line. Typically a buyer will choose to close in 30 to 60 days. The balance of your down payment should be available at least 7 days before close of escrow.

11.           Don’t make any major purchases until after close of escrow or risk compromising your financing. Discuss this with your lender first.

12.           Don’t make job changes for the same reason.

13.           Shop for home fire insurance once you are under contract - you will need a binder for home owners insurance typically within 5 days of acceptance.

14.           Discuss with your agent: If you are recently or are going through a divorce, have liens or judgments pending, don’t have a current valid photo ID, have extended vacations planned, or anything else which may affect your purchase.

15.           If you are purchasing a home with someone other than a legal spouse, it is advisable to discuss your title, ownership, and other financing arrangements with a tax planner and attorney.

16.           Remember your team of professionals, Relocation, Lender, Title and Escrow, Realtor, Inspectors, Contractors, Insurance Agent, etc. are here to insure you have a pleasant and smooth transaction. Your Realtor is the “Conductor” of your team. Feel comfortable to communicate openly and often with them.