Buying a home is one of the biggest investments and financial decisions you can make. While it is a major commitment and responsibility, it is also a very exciting time in your life. I’m proud that I will get to play a part
in it and am excited about soon having the privilege of handing you the keys to your new home!
With that said, it’s important to keep in mind that home buying is a complicated process. I will be working hard to make sure that everything is as rewarding as possible, guiding you at every step and making sure that
your needs and desires are met. This guide was designed to inform you about all steps of the home buying process so that you can feel confident, make informed decisions and act as an educated buyer. It will also help both me and you
understand the things that you’re looking for in a home so that our search can be made as easy as possible.
Talk to a qualified lender
After looking at this information for yourself, it’s time to speak to a qualified lender. A professional advisor will not only be able to give you information on the best rates and terms available in the current market, but he or she can also explain to you what options you have given your unique financial situation. There are a considerable number of choices available to consumers and I advise you to learn as much as you can about the different lending options that are available to you.
Talking to a lender at this time will help you get a more accurate idea of what you can afford.
Lender Interview Cheat Sheet
- What kind of loans do you offer?
- What kind of loan would you recommend for me? What are the advantages and disadvantages of this loan structure?
- What is the current interest rate? Is the rate quoted the lowest for that day or week?
- What is the Annual Percentage Rate (APR) of an offered loan?
- Is the loan rate adjustable or fixed?
- What are the discount points and origination fees?
- What are all the costs of the offered mortgages?
- If the rate is adjustable – how will rate and loan payment vary?
- What are the qualifying guidelines for this loan?
- What is the lender’s required down payment for this loan?
- What documents will need to be provided?
- What are the closing costs?
- Will the lender guarantee the GFE (Good Faith Estimate) of settlement charges and loan terms?
- Does the lender offer a loan rate lock? Is there a fee for the rate lock?
- Is there a prepayment penalty?
- Are you equipped to approve loans in-house?
- How much time do you need to fund the loan?
- Will mortgage insurance be required?
- Can the term of the loan be extended?
- Is there a cap on payment adjustments?
Pre-approved buyers are ahead in the home buying game. If you make an offer on a home and then apply for a loan instead of the other way around, you are at the mercy of the lender who now knows that you don’t have time to shop around. A pre-approval letter from a lender will also give you an edge when multiple offers have been made on a house. Pre-approved buyers generally close escrow more quickly, since most of the paperwork has already been taken care of.
Home shopping can be both exciting and exhausting but doing some preparation before you hit the street to look at homes will help out tremendously.
Schedule Showings
It’s time to get out and see some of the houses you’ve been looking at in person. We will compile a list of the properties you’ve found as well as options I’ve found of similar properties on the local Multiple Listing Service (MLS)
Showing Tips:
1 We don’t want to view too many properties in one day.
2 Don’t be put off by interior decorations – they can and will be changed.
3 Bring a notebook, pen and / or digital camera with you as you search.
4 Keep a folder with flyers or print-outs on properties that you’ve viewed.
5 Don’t hesitate to ask questions.
Making an Offer
When you’ve found a home that you’re interested in, it’s time to make an offer. As your buyer agent, I will draw up a contract with your offering price and necessary contingencies into a formal contract.
You will want to review this document carefully and make sure it states your terms exactly. If the offer is accepted by a seller, this contract will become a legally binding agreement.
