Step1, Pre-consideration | Step2, Finance/Qualification | Step3, Purchase/Closing | Home

Step3, Purchase/Closing

1. How to Buy a Home : The basic steps
2. How to make an Offer to Purchase : Step by step
3. What about a Survey? : You probably will need one
4. Should I get a Home Inspection?: Yes
5. Real Estate Condition Report : Seller should fully disclose
6. Things to know about Legal costs
7. Some Closing Tips : Be ready

1. How to Buy a Home : The basic steps

Enjoy the journey. You will find the destination puts you "at home."

> Four Quick Steps to Home Ownership

1. Decide to buy
   Sounds simple but the first and most important step toward purchasing your first home is making the decision to buy. Untilyou really decide to buy...home ownership is but a dream.
2. Pre-qualify
   The second step to take is financial pre-qualification.This service is normally provided at no cost to you. We can recommended several mortgage specialists that will help you find the best rates and terms available in todays marketplace. As well as answer any questions you may have about the mortgage process. Budgeting and planning are necessary to make home ownership enjoyable and rewarding. Make an informed educated decision ... pre-qualify before you buy.
3. Recruit a team.
   When making one of the largest financial decisions in your life don't wing it. Recruit a team of professionals as the third steptoward home ownership. Experts in their fields can educate you, guide you, coach you and protect you, every step of the way. You already have a First Time Buyer Mortgage Specialist, so now build your team. If you don't already have one, add a Real Estate Professional who will work with you under a Buyer Agency agreement; a Lawyer who works with First Time Home Buyers and who's primary practice is Real Estate Law; a qualified Home Inspector or Engineer to ensure you are purchasing a problem free home; and finally, an Insurance Representative to arrange for Home Insurance. Rely on the expertise of your team of professionals... remember, this is what they do , all day... every day!
4. Realize your dream.
   The fourth, and final step, is working with your team of professionals to find the right financing, the right home, and making the right move... to make your dream of home ownership a reality!
   Read on for additional important information
   or email Colin and Pat with your questions

It is exciting to know that one of the homes you look at today will be your home tomorrow!

No one buys a fireplace, a deck or a 2 car garage. They buy love, security, privacy, and romance. Think about why you want to buy and imagine yourself in your new home.

Unless you are ready to buy today-don't look at homes today. Until you are ready to buy, watch ads, drive by, go through open houses and keep track of the sold prices in the areas that interest you.

The purchase of a home may be the largest purchase you will ever make. Don't let anyone "talk you into" a property that doesn't feel right to you. In my 12+ years in the business, I have never sold a home. The home sells itself as it speaks to its new owner.

You will know that you are home when you walk in. Let your feelings rule. You shouldn't be buying specifications. You should be buying your motivations: comfort, independence, security, future profits, self fulfillment, pride, social acceptance, convenience, and feeling of comfort and love. Get in touch with why you want to buy before you try to decide what you want to buy.

> STEPS TO TAKE BEFORE BUYING YOUR FIRST HOME
   From Scripps Howard News Service

When buying a house, many people discover they can't afford as much as they had hoped and past financial sins may come back to haunt them. If you're among those considering a housing purchase this year, here are some points to consider. "Opening the Door to a Home of Your Own";

• If you haven't been working steadily for at least two years, you may have trouble getting a mortgage unless there's a reasonable explanation, such as recently finishing school or military service or seasonal work that leaves a gap in your record. "If you have been fired for cause such as excessive absences, have long gaps in your employment record or have dips in your income level that are difficult to explain, you should probably delay buying a home,"
• Lenders are wary of people who don't pay their bills on time. Your record is right there for all to see on national credit reports. Before you set out to buy a house, clean up your credit record, that is, establish a two-year record of paying bills on time. You can get a copy of your credit report from the two national credit reporting services,
• For most mortgages, you'll need a down payment of at least 5% of the purchase price. On a $120,000 mortgage, that would be $6,000. You also may need several thousand dollars more for closing costs.
• Before you start house hunting, figure out how much you can afford to pay. As a rule of thumb, count on spending no more than 28% of your gross (before taxes) monthly income on housing expenses-principal, interest, insurance and property taxes. All your monthly debts should come to no more than 36% of your gross income.

DETERMINE WHEN YOU WANT TO BE IN YOUR NEW HOME
If you buy today, you will probably close in 30-45 days from today. Typically, the seller may wish to occupy 15-30 days after closing. Does this time line fit your projected moving plans?

FIND OUT HOW MUCH YOU SHOULD INVEST IN YOUR PURCHASE
Arrange a counseling session with a competent REALTOR¢ç or a prequalification appointment with a lender.

TO CHOOSE A REALTOR®, try to find one with an excellent reputation and knowledge. Find one who makes you feel that they are interested in you and someone who will commit to helping you. Expect the good REALTOR¢ç to schedule a conference to discuss your needs, your wants and your financial situation.

TO CHOOSE A LENDER, ask a real estate professional for referrals. The experienced REALTOR® will have the names of lenders who have proven themselves regarding service and commitment. Go to "Questions the Lender Will Ask."

WHAT WOULD YOU LIKE TO BUY?

A. LOCATION, LOCATION, LOCATION.
The three most important elements of your purchase. You can usually change anything except location. Consider geographic and social aspects of location.

B. SIZE
Consider the size. If its smaller than you had hoped for, can you deal with the size or can it be expanded within your budget parameters?

C. STRUCTURE
Is it sound? Does it need repairs that you can handle? Are the necessary repairs and upgrades in your budget? Will the necessary changes be good investments in the event you have to sell later?

D. AMENITIES
Does the property have any or all of the amenities you want? If missing, are they important. If important and missing, can you fix it?

WORKING WITH A REALTOR®
Did you know?
Very few homes sell through Open Houses. 1 in 400 homes sell through classified ads. Only half of the homes for sale are in the ads or Open Houses.

If you are serious about buying a property, it makes sense to work with a professional. The professional can make it easier. The first meeting is important. It is your opportunity to interview and get acquainted with the REALTOR¢ç and you can help the professional understand your reasons for buying and the things that are important to you. Be sure to be candid about your motivations.

WHAT SHOULD YOU EXPECT FROM THE REALTOR®?

1. The REALTOR® will review the properties available and select those that meet your criteria.
2. The multiple listing service will provide access to most homes on the market.
3. The REALTOR® will arrange the showings.
4. The REALTOR® will provide property and finance information.
5. The professional will provide upon request enough information that will help you establish market values.
6. The REALTOR® will prepare your sales contract.
7. The REALTOR® will arrange for the presentation and negotiation with the seller.
8. The REALTOR® will assist you with finding financing.
9. The REALTOR® will help you arrange inspections.
10. The REALTOR® will follow through and will help take you through the closing.

HOW MANY REALTORS® SHOULD YOU WORK WITH?
REALTORS® work on commission. The best REALTORS® will only commit to you if you commit to being loyal to them. The best REALTORS® will "back-off" if you are working with others. One good REALTOR® will benefit you by reciprocal loyalty. You will get exceptional service if the REALTOR® knows you are loyal to him or her.

PLAY 1-2-3

1. Rely On the REALTOR® to choose the properties you view.
2. Every 3rd property-Set 2 aside.
3. Keep discarding every 3
4. At the end of the tour of homes, throw out all but one.
5. If this were the last property in the world, would you buy it?If yes, consider an offer.
   If no, hone your criteria so that the next tour will be more productive.
   NOTE: Be sure to look at the property and not just the condition.

HOUSE HUNTING WITH CHILDREN

• Take special care to talk to your children about the upcoming move. Deal with their concerns as they come up.
• Leave young children with friends, family or a baby sitter during the initial house hunt. House hunting is stressful enough and details of individual houses tend to blur after tours through several. Fidgety children can complicate matters. Going alone also will eliminate the potential embarrassment of having to ask the seller for bathroom privileges for your youngster.
• Include your older children in the house-shopping process as much as possible. Keep them occupied by letting them plan and pack a box or two of their special things. Seek their input on new decor and room design, and what kinds of features they would like to see in a new house and in the neighborhood. Make sure you inform your children that just because they would like an indoor Laser Tag arena that you may not be able to make good on such a request.
• Investigate the community. Track down the children. Locate things such as recreation centers, churches, movie theaters, etc.
• Once you have selected your dream home, if possible, bring your children along for a tour of the house and neighborhood. If this is not possible, take plenty of pictures of your new place, cool haunts, schools and share them with your kids.

SOME "INSIDER" SECRETS TO GET WHAT YOU WANT

1. GET PRE-APPROVED.
   To make the strongest offer possible get "pre-approval." The process takes a few days or less. With your pre-approval certificate, it's like taking cash to the seller. If you are competing against other offers you will have a definite advantage.
2. DAILY SEARCH
   When you are serious about buying, find a Realtorwho is serious about helping you. Get your agent to do daily MLS searches.
3. SPEED IS IMPORTANT
   don't think you can look tomorrow or on the weekend. Look immediately and be prepared to make you offer on the spot.
4. WRITE A "GOOD" OFFER.
   Write your offer to be accepted; not countered. While you are in-counter, someone else could be buying your home. Negotiation is only important to you when you get what you want.
5. THE PRICE
   Asking price used to be what the seller hoped for. In a "hot" market, there may be multiple offers. The actual sale price can be more than asking. If you have done your homework beforehand, you will feel more secure when negotiating your offer.
6. BEST OFFER
   If you are the only offer when you write, other offers may come in after you have written. Even if you end up in a multiple offer scenario, the seller may choose your offer, because you started better than the rest. It's not scientific, but it can work!
7. THE BIG PICTURE
   If you get what you want, you are the winner. The couple thousand dollars you might save could cost you what you really want. When you move in-you'll look back and congratulate yourself.

NOW, LET'S WRITE AN OFFER

• Remember: Once you choose, everyone else in the world will want it, too.
  Write your highest and best offer. (Across U.S. & Canada, the average property sells within 97% of asking.)
• It's a "good deal" only if you want it and you get it!
• The offer should be drafted carefully. Some guidelines follow:
• WRITE YOUR BEST OFFER Anytime you play low ball "We will start here" you risk losing the property to another buyer.
• DEPOSIT MONEY The more deposit you offer, the more confidence the seller will have in your commitment to the transaction.
• INCLUSIONS If you want an item included, it must be stated . Whether or not it is shown on an office sheet, it isn't included unless it is stated in the offer.
• TIME IS OF THE ESSENCE This means that the dates are extremely important. The "next day" isn't good enough! Midnight on the day named is the "drop dead' deadline. (Watch especially for loan commitment deadlines. )
• INSPECTION Go to the "Home Inspection" page for a complete discussion. Have your REALTOR® or your lawyer explain the Right-to-cure option. . We aren't talking about a laundry list here. Defects must be significant.

Check back for more items in the future.

Whether the seller or the buyer is dealing with the offer, the choices are the same:"Accept", "Reject", "Counter".

Upon an accepted offer, upwards of 30 people are part of the transaction. There are lenders, loan officers, appraisers, credit checkers, inspectors, processors, and more.

If you work with a REALTOR®, follow the steps, do your homework and provide the information needed by the lender, you will be comfortable with your decision and should live "happily ever after!"

EXTRA NOTE:
It is important not to make any major changes between the time you make an offer and the closing.

For instance.

• Job Change:
  Don't make job changes without the blessings of your lender . A "new job" could kill your transaction, affecting the "time on the job" criteria.
• Marital Status:
  A divorce can reduce your income. A marriage can change the loan application. If your new spouse has past credit problems, you will likely have a problem with credit scoring requirements. As with a contemplated job change, make no marriage plans without your lenders blessings. Poor timing could jeopardize your transaction.
• Major Purchases:
  Buying a car or other major item on credit after your mortgage approval and before the closing can significantly change your debt ratios and could kill your home purchase.