Buyer's Guide

Purchasing a property is most likely the biggest financial decision you will ever make so the decision must be made carefully.

Why Do You Want To Buy?

Are you tired of paying rent? Do you need more space? Are you an empty nester looking to downsize? Are you looking for a rental property? Would you prefer to live in a different location? Do you want a shorter commute?  Clearly defining your “why” will help you choose the right property.

Ownership

According to the annual Profile of Home Buyers and Sellers, compiled by the National Association of REALTORS®, the primary reason buyers cite for purchasing a home is simply the desire to own, followed closely by the desire for more space, and a change in the family situation.

Equity

You will also build equity for yourself, instead of for someone else. Every payment you make, plus the rules of inflation will eventually allow you to recoup most if not all of your investment or make a profit when you sell.

Build Your Green File 

A green file contains all of your important financial documents, which you will need to secure financing for your property. The green file should include the following:

Recent pay stubs, bank accounts, financial statements, investments, credit cards, auto loans, tax returns for two years, copies of leases for investment properties, 401k statements, life insurance, stocks, bonds, and mutual account information.

Check Your Credit Rating

Your credit score will have a huge impact on what type of property you can buy and at what price. It is recommended to check your credit rating with an experienced lender to determine what you can afford. The lender will research your credit ratings from three major credit reporting agencies: Equifax, Experian and Transunion. We will be happy to recommend a trusted lender.

Determine What You Can Afford and Where

Buying and financing a home are closely related, so it is important to review your current financial situation to understand how much you can afford.

One of the key components that determines the start of all searches is location. Why does location matter so much? Because you can’t move a home.

Now for the fun part…..Home Shopping!

It’s time to find the right property for you. No home is perfect, so don’t let the minor flaws influence you. Think long-term. Which home best suits the activities and needs of your household now and in the years ahead? Don’t buy more than you need or can comfortably afford.

Inspections provide an opportunity for a buyer to learn more about the condition of the property and identify any major issues with a home prior to closing.

Home Inspection

A home inspection is a professional third-party opinion of the home’s condition. Completing a home inspection is one of the best ways to ensure the home you’re buying doesn’t have any major underlying issues.

Pest Inspection

A pest inspection is conducted by a professional third-party that completes a visual pest and termite inspection of all accessible and available areas of a property to determine the presence of active termites, termite damage, or infestation (dry rot).

Roof Inspection

A roof inspection will determine the integrity of a roof, how long it may last, and when it will need to be replaced.

After you receive the official inspection reports, you will have time to discuss the findings with your agent and decide how you want to respond to the seller. If major issues are found, you can reopen negotiations by requesting:

     1) Seller complete requested repairs prior to closing

     2) Seller provide you with a credit so you can fix it on your own after closing

     3) Reduce the purchase price

After all the contingencies have been removed, it becomes the responsibility of the legal and financial institutions to prepare all the necessary paperwork. Should there be any issues, your real estate professional will contact you.

Credit and Employment Check: Your lender will check your credit and employment status one more time. Now is not the time to make any purchases or change employment.

Closing Statement: Escrow prepares the buyer’s estimated closing statement, which lists all of the costs and credits associated with the purchase of a home showing the buyer their total costs to close the transaction and showing the seller their net profit (or loss).

Signing Day: Your lender will draft closing documents and email them to escrow. Escrow will prepare the documents and schedule a date and time for you to sign with a notary at your preferred location.

Final Walk-Through: You and your real estate professional will complete a final walk-through to confirm the home is in the same condition as date of acceptance and to ensure all agreed-upon repairs have been completed (if applicable).

Closing Day: Closing marks the end of your home buying process! On closing day, your lender will review the funding package to ensure all funding conditions have been met then fund the loan. When escrow receives the wire, they “release” the deed of trust (the mortgage) and the grant deed to record at the County Recorder’s Office. “Recording” means that you are on public record as the “owner of the house.” Now you can receive the keys to your new home!