Evergreen Real Estate Services and its Associates are committed to making the home buying and selling process as straight-forward and painless as possible. We understand that it can be daunting with a multitude of documents and figures all designed to cause a headache!
When buying a home, you may get intimidated by the number of steps required to engage a real estate professional, submit an offer and eventually make your way to the closing table. Here are a few simple tips to get started;
1) If applying for a mortgage to purchase your home, obtain a pre-approval letter from your desired lender and check on your credit score. This will grant you the knowledge of how much you can afford and your REALTOR® can structure a search for a property based on your precise requirements. Checking your credit will allow you to correct any prevalent issues which may hinder your purchasing potential. Evergreen Real Estate Services will happily provide a few recommendations for a lender should you ask although we do not directly endorse any one particular party. In addition, remember to account for any down-payment requirements, earnest money deposit funds and any prospective improvements you wish to make. You will receive a Good Faith Estimate from the lender which will outline the relevant charges for financing so you have a clear picture of what to expect.
TIP: An efficient loan officer will always tell you how you can reach your goal and advise on what you need to do to get there. Try a few parties, at least three and get a feel for which one is most committed to helping you purchase your dream home. Remember that a pre-approval is much more detailed and reliable than a pre-qualification, which is simply based on information provided and does not take into account the information found on your credit report.
2) Select a REALTOR® or real estate sales associate to work with. Be sure to choose a professional who specializes in the area you desire to purchase in and in addition, that you are comfortable not only working with but who is also approachable and knowledgeable about the task at hand.
3) Formulate a list of “must haves”and decide what is dispensable in terms of your new purchase. Very rarely will a home tick every single box but chances are, your agent will be able to find something which meets your needs and most of your wants. Decide before engaging a professional on how many bedrooms and bathrooms you need, the desired age of the dwelling and consider other factors such as the school district or location of the property. Once you know what you want, you will save valuable time on behalf of not only yourself but also your agent who can concentrate on the properties which meet your needs.
4) Submit an offer. Before preparing an offer however, ask your REALTOR® to prepare you a CMA (Comparative Market Analysis) for your neighborhood or surrounding area. This will enable you to view all recent market activity and determine what a suitable offer price would be. Your professional will talk you through the offer, determining along the way with you the various pertinent details required, such as a desired closing date and inspection period. Remember that by and large, real estate professionals cannot interpret law and can only quote as fact what is written on the documents. For further interpretation, it is recommended you consult an attorney as an agent does not have license to advise on such matters. Once terms are agreed with the seller, an earnest money deposit is placed (usually 1% of the transaction value or $1000,00, whichever is higher) and you are officially under-contract!
TIP: As we say in Florida, everything is negotiable! The only things that are not are the property address, legal description and the names of the parties conducting the transaction. Do not be pigeonholed into a belief that you have to accept something, as is, off the bat. You can always ask and the art of negotiating should always send in a result that satisfies both buyer and seller. You don’t want the furniture but you really like the wall-mounted 70″ plasma? Ask if you can keep it. You want to offer a bit less but can close in 14 days? Then propose it.
5) Prepare for closing. Cash offers are unique in the sense that they can often close more quickly than a conventional mortgage-contingent transaction. In either case, ensure your ducks are in a row when it comes to finances and take care to ensure that all deposits and pertinent payments are remitted in timely fashion. When applying for a mortgage, be sure to make your application within the allotted time frame and do not do anything to jeopardize your debt-to-credit ratios! There are many mortgages our there for potential new homeowners – FHA, VA, USDA and fixed and adjustable terms. Be sure to pick the one which best fits your needs and affordability. In the meantime, your agent should be able to assist you with obtaining thorough home inspections and appraisals via the vast network of professionals available. You may baulk at the fee but you will get a full breakdown of the property and any potential hazards or repairs which need attention. In the worst case scenario, should you conduct this during the allotted inspection period and the inspection is unsatisfactory, you will have the ability to rescind your offer.
TIP: Depending on what type of contract is utilized, the home inspection period may already be pre-defined or may not. An AS-IS contract has by default a 15 day period in which to conduct a formal inspection and perform due diligence. This should not be confused with the 3 day grace period in which you are permitted to review condominium documents and assess financial statements for a condominium association. Nevertheless, your inspection should be conducted, reviewed and acted upon during this timeframe, which may be extended or lessened during negotiations. A regular contract will require an addendum which allows the right to inspect and cancel furthermore – in any case, you are protected and so is your deposit in the event the home does not pass. Your agent can guide you forward during this stage of the process.
6) Close on your home. Be sure to set a closing date which is convenient for all parties and review the closing statement carefully to make sure you understand all the charges and that they are consistent with the Good Faith Estimate. During this final period, you should also receive a copy of your appraisal, should the lender have made one. Signing documents can take up to a few hours so make sure you have the time off work and more so, be ready to have your loyal legion of family and moving companies ready as you embrace the receipt of your keys and you make your new home yours!
Allow Evergreen Real Estate Services to personally take you through the process of purchasing your next property. Do not hesitate to contact one of our associates today!
Evergreen Real Estate Services 