The Home Buying Process
Buying a home can get quite detailed. Here are the steps to take to ensure you’re prepared for the exciting road ahead.
Choose Backus Real Estate Group
Why? We will help you with all the following steps and more. We will save you time and money by researching properties based on your criteria, helping you secure the best mortgage rates, counseling you on the offer amount and terms most favorable to you, and negotiating on your behalf. Tina Backus has over 10 years of experience in working with buyers, and sellers. Nikki Valdez is a buyer's specialist and will work very hard to help buyers find the perfect home and walk them through the entire process.
Decide What You Want
Before you start looking, make a list of what you want. Then assign each item a priority. Some areas to consider are:
- Location: How close do you want to be to your job, shopping, the kid’s schools, or entertainment?
- Type of home: A single-family house typically provides the most space and gives you fewer restrictions on customizing your home. But a condo offers amenities without yard work—for a price.
- Age of the home: Existing homes have mature yards and established neighborhoods; however, they require more maintenance. Although new homes aren’t always without problems, they usually require less maintenance initially. Of course, you may have to put in landscaping and endure nearby construction.
Know What You Can Afford
Consider these factors:
- Get Pre-Qualified: You need to visit with a local lender prior to us looking for homes so that you know what you qualify for, and most importantly, what you are comfortable with. We will also need this so that we will know what type of loan you will be using...some homes will not pass all financing methods standards.
- Downpayment: Most loans require a downpayment. The amount varies, but usually runs between 3% and 20% of the purchase price. If you’re a first-time buyer or fall below certain income thresholds, you may qualify for affordable-housing programs. Generally, a higher downpayment means better loan terms and a lower interest expense on the mortgage.
- Qualifying for a loan: A lender will determine how much he thinks you can afford based on your income, employment history, education, assets (e.g., bank account balances, other property, insurance policies, pension funds), and debt. Check your credit report before the lender does to clear up any problems.
- Your comfort level: You don’t have to spend $200,000 on a home just because the lender says you can afford a $200,000 home. Do some math and determine what you’re comfortable spending. Do you want to eat Ramen Noodles every night, or occasionally have a steak?
Make an Offer
You’ve figured out your home-search criteria and what you can afford. Now find a house and make an offer. Backus Real Estate Group is invaluable in this part of the process that involves many steps, including:
- Preparing a contract and the myriad details on it
- Handling negotiations with your best interests in mind
- Juggling inspections and option periods.
Secure Financing
Unless you’re paying cash for the home, you’ll need a loan. Keep in mind the true price of financing goes beyond the interest rate alone. Consider items such as points, total lender fees, term of the loan, and penalties for early payment. The lender will likely require an appraisal to verify that the home is worth the cost of the loan as well as a physical survey. Repairs may be required. Insurance must be purchased. All these conditions and others must be satisfied before a transaction can close, but we will help guide you through this.
Close the Deal
After weeks or even months of research and decision-making, you close the transaction, usually at the title company's office. The title agent ask you to sign many, many documents and will explain each one. You’ll present a cashier's check to the title company, sign another document that itemizes closing costs (the lender will have given you an estimate in advance), and pay your share of the closing costs. In return, you will receive a deed, transferring ownership rights to you.
We look forward to helping you find your dream home...call or email us today to get started!
(325)603-3507
tina.backusrealtor@gmail.com
