Why Buy a Home?
Buying a home is an investment in your future!
Pride of home ownership is typically a key reason for wanting to own a home–decorating to your taste and living in it how you want! But here are some other great reasons to consider buying:
- Typically, real estate has been a good investment because it appreciates over
time. Homeowners build equity, which creates value they can borrow against
in the future. It’s a step to building wealth! - Interest on your mortgage is tax deductible.
- Property taxes on your primary residence is tax deductible.
Positioned to Help
Area Knowledge
Does the agent know the neighborhood or have access to someone who does? Do they have access to resources that will help you understand the area’s amenities and features?
Housing Search
Will the agent stay in tune with the area and price range you’ve specified?
Financial Decisions
Is the agent knowledgeable about different purchase structures that might be available to you? Are they helping you in a manner that keeps your financial welfare at the forefront?
Diligent & Efficient
Is the agent prioritizing your home search? Do they communicate quickly and appropriately?
The Buying Process
The following is a basic outline of the steps and order that most home buyers typically
experience.
1. Introduction
The buyer and the agent meet to share expectations and learn about the home buying process. You’ll receive important market information and we’ll begin to consider what to search for in your new home.
2. Financing
The buyer and agent will strategize on finance relationships and options to determine what loans and purchase types are in the best interest of the buyer.
3. Making an Offer
Once the buyer has decided on a home, the agent will put together an offer at the instruction of the buyer. The agent is knowledgeable about the contract process and will include applicable and detailed documentation.
4. Offer Acceptance/ Inspections/Appraisal
Both buyer and seller agree to the contract price. The buyer has the opportunity to conduct any inspections included in the contract and the bank will conduct an appraisal at this point.
5. Closing and Possession
They buyer and the seller finalize transfer of the deed, the bank releases funds to complete the purchase, and the buyer takes possession of the home.
Buying Process Timeline
Getting Started with Financing
Pre-qualification vs. Pre-approval
Applying for a loan and getting approval before you find a home is a distinct advantage. You’re going to have to apply anyway and doing it before you find your next home will allow you determine what price range you can be shopping in, and it shows sellers that you’re serious about the purchase. There are two terms that are used when gauging a buyer’s ability to proceed with a mortgage and home purchase:
Pre-qualified
Being pre-qualified means the buyers has received an opinion from a mortgage professional. It is an opinion to give the buyer a sense of what they could actually be approved for. It is a weaker position than pre-approval, but is often a first step.
Pre-approval
This means the buyer completed an application, complete with credit reports and verifications. You will be issued a commitment letter with specific interest rates and point. It is a stronger and more accurate position that will expedite the home buying process.
Application Documentation
This is a fairly comprehensive list of what you might be asked to provide when you’re prepared to file your mortgage application:
Employment
- Employer names and address for last two years
- Gross monthly income
- W-2’s for two years
- Year to date paystubs
- 2-3 years of tax returns for self-employed
Creditors
- Name/address and type of account. IE: car, credit card, etc.
- Account numbers for each
- Monthly payments and balances
Banking
- Name and address of institution
- Account numbers
- Type of account and balances
Other Stuff
- List assets: stocks, bonds, property, etc
- Life insurance cash value
- Copy of sales contract if selling a home
- Social security numbers
- Veterans—Cert of Eligibility & DD-214
What's Next?
This is part where we commit to working together as a team to get you the home that best suits your needs. I will commit to making my best effort to finding the home that meets your needs until we find it, or you tell me to stop looking. In committing my time, resources, and experience to find what you want, you can help me by communicating the following:
- Tell me what you like/dislike about the homes we see.
- Tell me if you want to see a home that may be listed with another agent/broker, builder, or is for sale by owner.
- Tell if you are considering speaking with another agent.
- Tell me if your plans change.
