 Before
purchasing a home you need to do a little homework to ready
yourself for the process.
More importantly, we want you to understand
the process so that there are no surprises. Below you will
find a quick overview of the home buying process. And remember,
our team will be available each and every day to walk you
through step by step. It is our goal to make this fun and
easy, we want to share in your excitement!
- Set your limit – Look at your personal
finances and decide how much money you think you can comfortably
spend on a home. In order to make this decision, put pen
to paper and make a budget listing your expenses and your
income so that you can see what you are comfortable spending
on a home. Then, even if you think you have a comfort level,
consult a lender, your accountant or mortgage broker who
can help you check your numbers. The last thing we want
you to do is to spend too much on a home and not have enough
resources to buy a piece of furniture.
- Contact your lender – Unless you
are paying cash for your new home, you will need to obtain
a home loan (mortgage). Mortgages can be obtained through
your bank or a mortgage broker who has access to many banks
and competitive interest rates. Your lender or mortgage
broker will assist you in calculating how much to spend
on a home. He or she will get a copy of your credit report,
discuss the interest rate you may eligible to obtain on
a home loan, and he or she will provide you with information
regarding the cost of insurance, property taxes, closing
costs, tax stamps, fees, current rates and different loan
programs available. We can also help explain these items
to you. If you need a lender or mortgage broker, we are
happy to provide you with a list of professionals used previously
by our clients.
- Prioritize the features of a home & location
– Again, put pen to paper and think about what it
would be like to live in your dream home and where the best
place to live might be for your job, recreation, family,
schools, shopping and public transportation, to name a few.
You should also literally identify important features of
your dream home, and rank them in order of importance, since
it will help narrow your choices. Here are a few items to
consider when you make your list:
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Joey Gault has incredible drive, analytical skills
and an unfailingly positive attitude. She is not
only a consummate professional but a delight to
work with as attested by the numerous letters and
calls we receive from satisfied clients.
Harry Huzenis
Executive Vice President
Jameson Realty Group
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- Price
- Number of bedrooms
- Number of bathrooms
- Media room
- Laundry room
- Fireplace
- Size of bedrooms
- Study
- Playroom
- Square footage
- East, West, North or South exposures
- Basement
- Single family, townhome, multi-unit, or condo
- Outdoor space (balcony, yard)
- Parking – garage, outdoor space or none
- Location/neighborhood
- School district
- Proximity to public transportation
- Doorman
- Dry cleaner, work out room, party room or pool
- The search-We will carefully analyze
all of the factors identified in your homework and assemble
a list of homes that may meet your criteria. We will then
pre-screen the homes to see whether the homes align with
your criteria. Next, the showings begin. We will work with
your schedule to personally escort you to a private showing
of the homes that may meet your criteria. At times, we will
identify open houses for you to attend where the general
public is invited to see a home between certain hours, usually
on Saturday or Sunday, without a prior appointment. If available,
we will assemble listing sheets, brochures, floor plans,
virtual tours and photos of the homes you are most interested
in seeing again. Ultimately, we will assist you in narrowing
your choices to that one special home that is right for
you.
- Get the perfect home – Once we
help you find that magic home, it’s time to write
the offer. We work for YOU – so our #1 priority is
to get you the best price. We will write the offer, review
the terms with you, discuss the upcoming steps and negotiate
on your behalf. We are expert negotiators from years of
practice. At the time of writing the offer, we will also
discuss with you:
- Closing date-the date when you will own the home
- How much you are putting down and how much you are
financing
- How long your lender will need to approve you for
the loan (mortgage contingency date)
- Who you will use for an attorney (we will provide
you with the names of different attorneys our clients
worked with in the past if you do not have one)
Typically, $1,000 is given with the
contract (initial earnest money) and then increased to
5% after attorney review (which we will discuss in the
next step). The check is not deposited with the seller’s
agent until your offer is accepted and is fully refundable
if during the attorney review all outstanding issues are
not satisfactorily finished. If the seller accepts the
offer, we will get the seller’s signature on the
contract. Upon the contract of sale being agreed to by
you and the seller, we will fax the contract to your attorney
and your lender.
- Attorney review & inspection –
In the contract, a time period (typically 5-7 days) is specified
for attorney review. Also during this time, you should hire
a licensed home inspector to check the home from top to
bottom. After the inspection, the inspector will review
any items that need to be addressed and you will contact
your attorney to discuss those items. Your attorney will
contact the attorney for the seller and they will negotiate
how to handle these items. During this time, the attorney
will review the contract and make modifications to the contract,
if necessary.
- Mortgage contingency – When we
write the initial contract, we put a deadline in by which
you need to obtain a mortgage. This is the mortgage contingency.
It is usually 30 days or less and is a protection to be
sure you will be approved for a loan. During this period,
you will need to fill out a loan application with your lender
and usually supply tax information, income verification
and other personal financial information so that the lender
can decide whether to loan you money to purchase your dream
home. Once the lender gives you a commitment, a formal approval
to make the loan, we will be notified. If the loan is approved,
the sale is ready to go. If the loan is not approved during
the contingency period, you are usually not required to
go through with the home purchase. We will work closely
with your lender and your attorney to make sure this date
is extended if needed.
- Closing – When the paper work
is complete, the home loan is approved and the attorneys
have finalized the deal, the home is ready for closing and
the ownership of the home will change hands. Either the
day before or the day of the closing, we will do a final
walk through of the property with you to make sure the home
is in order. At the final walk through we will:
- Test the appliances
- Flush all toilets
- Turn on all faucets & check pipes for any possible
leaks
- Turn on tub or shower
- Test heat/air conditioner
- Be sure all home inspection items that were agreed
to be repaired have been done
You will receive closing figures from the
lender or the attorney a day or two before the closing so
that you know how much money is needed at the closing. You
will usually need to bring a certified check to the closing
along with a picture I.D. Your attorney will review all of
the mortgage documents with you and review the closing statement.
Once this is completed and the lender has paid the money to
the seller or the loan has been funded, you are done! Congratulations!!!
And, don’t forget the keys to your new home!!!!
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