Buyer
Make your buy decision
- You’ve decided you are ready, willing, and able, to buy a home.
- You are looking into financing and your finances are in order.
- You have an idea of what you are looking for and where.
- You can move in 30-45 days.
- You have a budget.
- You are ready to submit an offerA formal bid from the home buyer to the home seller to purchase a home. when you find the right place.
Identify your team
- Select your Agent
- Select a LenderThe lender providing funds for a mortgage. Lenders also manage the credit and financial information review, the property and the loan application process through closing.
- Identify your Inspector
- Identify your insurance company
Get a conditional approval letter
You can’t make an offerA formal bid from the home buyer to the home seller to purchase a home. without a Conditional Approval Letter from your lenderThe lender providing funds for a mortgage. Lenders also manage the credit and financial information review, the property and the loan application process through closing.. The seller can judge your creditThe ability of a person to borrow money, or buy goods by paying over time. Credit is extended based on a lender’s opinion of the person’s financial situation and reliability, among other factors. More worthiness with the letter. A smart seller will call the lenderThe lender providing funds for a mortgage. Lenders also manage the credit and financial information review, the property and the loan application process through closing. and ask what steps have been taken to issue the letter. All income and assets should have full documentation. The letter identifies how much you can pay, the down paymentA portion of the price of a home, usually between 3-20%, not borrowed and paid up-front in cash. Some loans are offered with zero down-payment., loan type and any conditions for getting the loan. The more cash down the better and a conventional loan is more desirable to a seller than a VA and FHA loan. There are exceptions.
Start your search
Begin looking online and narrow your focus. Your considerations are unique to your individual and family needs. Make a list of factors that are important to you and decide which are must have or nice to have features. You can modify your list after you have began looking at homes. Some common considerations are:
- Location
- Proximity to work or play
- Schools
- Size
- 1 or more floors
- Number of beds and baths
- Garage spaces
- Lot size
- Property taxes
- Price
- Age
- Condition
Narrow your search
At some pointOne percent of the amount of the mortgage loan. For example, if a loan is made for $50,000, one point equals $500. your list should be narrowed to a handful of subdivisions. Those with similar features and cost. Before looking at a home with your agent, drive the neighborhood, when possible, attend open houseWhen the seller’s real estate agent opens the seller’s house to the public. You don’t need a real estate agent to attend an open house. functions advertised online. Next:
- Have your agent schedule showings and check availability.
- Bring advisors and decision makers with you to showings.
- Be prepared to move fast if even going to see one home at a time.
Prepare to make an offer
Ask “What home is the best choice for my budget?”. You must see enough homes for your gut to say “This is the one”. When you can say ” I know it when I see it” you are ready to make an offerA formal bid from the home buyer to the home seller to purchase a home.. Your agent can put together an offer for you and present it to the listingAn agreement of which a property is marketed through a service or association composed of several agents with fees and a commission from the sale of a property shared between the selling broker and the listing broker. agent. Considerations are:
- How many days has this home been on the market?
- Your agent can ask the listing agent about offer considerations, other offers, previous offers, deadlines, and any special needs of the seller.
- Review a market analysis with your agent to determine a negotiation strategy.
- Review costs.
- Check inspector availability.
- Go see it again if you are not sure.
Make an offer
The goal is to negotiate the best possible offer and win the deal. Making an offer is a fill in the blank process. All offers are on the same contracts and forms. What is acceptable to the seller is somewhat unknowable. Your agent can advise on how to make a strong offer. From the sellers point of view, “they want the best offer that will close.”
The variables in an offerA formal bid from the home buyer to the home seller to purchase a home. are:
- Names of buyers and sellers
- Price and Down PaymentA portion of the price of a home, usually between 3-20%, not borrowed and paid up-front in cash. Some loans are offered with zero down-payment.
- Exclusions
- Who pays for the titleThe right to, and the ownership of, property. A title or deed is sometimes used as proof of ownership of land. policy
- Choice of Title Company
- Amount of Earnest Money
- Amendments to the title policy
- Who provides the surveyA precise measurement of a property by a licensed surveyor, showing legal boundaries of a property and the dimensions and location of improvements.
- Days to make objections
- Acceptance of property as-is or with conditions
- Allowance for residential service contract
- Date of closingThe process of completing a financial transaction. For mortgage loans, the process of signing mortgage documents, disbursing funds, and, if applicable, transferring ownership of the property. In some jurisdictions, closing is referred to as “escrow,” a process by which a buyer and seller deliver legal documents to a third party who completes the transaction in accordance with their instructions. See…
- Date of possession
- Special provisions
- Seller paid buyer closing costsThe upfront fees charged in connection with a mortgage loan transaction. Money paid by a buyer (and/or seller or other third parties, if applicable) to effect the closing of a mortgage loan, generally including, but not limited to a loan origination fee, title examination and insurance, survey, attorney’s fee, and prepaid items, such as escrow deposits for taxes and insurance….
- Other addendums and amendments
- Option feeA payment from the buyer to the seller for the unrestricted right to terminate the contract during the Option Period. amount
- Option periodAn option period is a specified time frame in a real estate contract which allows a buyer to terminate the contract for any reason. It creates the right to terminate within the specified number of days for a specified price. Usually the first 5-10 days of the contract. During the option period, a buyer inspects the home for material defects. days
- Days for buyer loan approval
- Days for lenderThe lender providing funds for a mortgage. Lenders also manage the credit and financial information review, the property and the loan application process through closing. loan approval
- Other contingencies
- Amount payable for HOA transfer fees and timing for delivery of documents
- Lead paint disclosure
- Other addendums and disclosures for unique situations
- Sellers Disclosure notice
- Updated LenderThe lender providing funds for a mortgage. Lenders also manage the credit and financial information review, the property and the loan application process through closing. Conditional Approval Letter
- Letter from buyer to seller
After the offer is completed and signed it is presented to the listingAn agreement of which a property is marketed through a service or association composed of several agents with fees and a commission from the sale of a property shared between the selling broker and the listing broker. agent and seller. The goal of the agent is to create a positive rapport with the listing agent and promote trust. The outcomes are:
- Seller rejects the offer
- Seller sets a deadline for best and final offers
- Seller accepts another offer
- Seller counters the offer and terms are negotiated
- Seller accepts the offer