Home Buying By The Numbers
The decision to purchase your first home is one of the biggest and best choices you could ever make. After all, a home is the largest – and most emotional – investment most people will face in their lifetime. So, where do you start? How do you know if it’s the right time for you to buy?
Check out this quick and easy-to-follow guide for these answers and more!
DECIDE TO BUY
There is never a wrong time to buy the right home. The key is finding the right buy and taking the time to carefully evaluate your finances.
A home purchase is an important step that can provide many advantages. Purchasing your own home is a great investment that can deliver several financial benefits – equity build up, value appreciation, automatic savings plan – not to mention a new sense of pride!
Start looking at your options today. You don’t have to know everything. Your Keller Williams agent is ready to help you through every step of the process.
HIRE YOUR AGENT
The typical real estate transaction involves at least two dozen separate individuals-insurance assessors, mortgage brokers and underwriters, inspectors, appraisers, escrow officers, buyer’s agents, seller’s agents, bankers, title researchers, and a number of other individuals whose actions and decisions have to be orchestrated in order to perform in harmony and get a home sale closed. It is the responsibility of your real estate agent to expertly coordinate all the professionals involved in your home purchase and to act as the advocate for you and your interests throughout.
SOME MAJOR ROLES OF YOUR REAL ESTATE AGENT:
While you may find the thought of home ownership thrilling, the thought of taking on a mortgage may be downright chilling. Many first-time buyers start out confused about the process or nervous about making such a large financial commitment.
From start to finish, you will follow a six-step, easy-to-understand process to securing the financing for your first home.
SIX STEPS TO FINANCING A HOME
- Choose a loan officer (or mortgage specialist).
- Make a loan application and get pre-approved.
- Determine what you want to pay and select a loan option.
- Submit to the lender an accepted purchase offer contract.
- Get an appraisal and title commitment.
- Obtain funding at closing.
FIND YOUR HOME
You may think that shopping for homes starts with jumping in the car and driving all over town. And it’s true that previewing homes is probably the most exciting part of the home-buying process. However, driving around is fun for only so long-if weeks go by without finding what you’re looking for, the fun can fade pretty fast. That’s why we say that looking for your home begins with carefully assessing your values, wants, and needs, both for the short and long terms.
QUESTIONS TO ASK YOURSELF
MAKE AN OFFER
While searching for your dream home, you were just that-a dreamer. Now that you’re writing an offer, you need to be a businessperson. You need to approach this process with a cool head and a realistic perspective of your market. Some basic components of an offer are price, terms, and contingencies.
PRICE – the right price to offer must fairly reflect the true market value of the home you want to buy. Your agent’s market research will guide this decision.
TERMS – the other financial and timing factors that will be included in the offer.
TERMS FALL UNDER SIX BASIC CATEGORIES IN A REAL ESTATE OFFER
PERFORM DUE DILIGENCE
Unlike most major purchases, once you buy a home, you can’t return it if something breaks or doesn’t quite work like it’s supposed to. That’s why home owner’s insurance and property inspections are so important.
A HOMEOWNER’S INSURANCE POLICY PROTECTS YOU IN TWO WAYS:
THE PROPERTY INSPECTION SHOULD EXPOSE THE SECRET ISSUES A HOME MIGHT HIDE SO YOU KNOW EXACTLY WHAT YOU’RE GETTING INTO BEFORE YOU SIGN YOUR CLOSING PAPERS.
Your major concern is structural damage.
Don’t sweat the small stuff. Things that are easily fixed can be overlooked.
If a big problem arises in your inspection report, you should bring in a specialist. If the worst-case scenario turns out to be true, you might want to walk away from the purchase.
The final stage of the home buying process is the lender’s confirmation of the home’s value and legal statue, and your continued credit-worthiness. This entails a survey, appraisal, title search, and a final check of your credit and finance. Your agent will keep you posted on how each is progressing, but your work is pretty much done.
YOU JUST HAVE A FEW PRE-CLOSING RESPONSIBILITIES:
ON CLOSING DAY, WITH THE GUIDANCE OF A SETTLEMENT AGENT OR CLOSING ATTORNEY AND YOUR AGENT, YOU’LL SIGN DOCUMENTS THAT DO THE FOLLOWING:
As long as you have clear expectations and follow directions, closing should be a momentous conclusion to your home-searching process and commencement of your home-owning experience.
PROTECT YOUR INVESTMENT
Throughout the course of your home-buying experience, you’ve probably spent a lot of time with your real estate agent and you’ve gotten to know each other fairly well. There’s no reason to throw all that trust and rapport out the window just because the deal has closed. In fact, your agent wants you to keep in touch.
EVEN AFTER YOU CLOSE ON YOUR HOUSE, YOUR AGENT CAN STILL HELP YOU:
Attention to your home’s maintenance needs is essential to protecting the long-term value of your investment.
HOME MAINTENANCE FALLS INTO TWO CATEGORIES:
Fixing small problems early can save you big money later.
Have more questions?
If you have a specific real estate related question that wasn’t answered in this guide, feel free to reach out for fast answers. You can send us a message via Facebook Messenger or submit one of our contact forms.
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please call (864) 540-5302.