Buyers
- 1. Considering on purchasing a home
- 2. Select a real estate agent
- 3. Determeines needs and wants
- 4. Discusses financial issues
- 5. Views & researches target homes
- 6. Makes an offer to buy
- 7. Offer accepted
- 8. Loan Application
- 9. Inspections
- 10. Title Search
- 11. Appraisal
- 12. Loan Approval
- 13. Closing Papers Signed
- 14. Documents Recoreded
- 15. Funds Available to Seller
- 16. Seller Moves Out
- 17. Buyer Moves In
Benefits of Home Ownership
- Credit: Owning a home helps you establish financial credibility.
- Independence: Owning your own home provides you with independence and more privacy than renting. You are free to paint walls, plant flowers, keep pets and anything else within legal bounds.
- Investment: As you make more payments and own more of your home, you add to its investment value. Most improvements you make will also add to its value.
- Multiple Listing Service: Your real estate agent should have access to the multiple listing service if it is available in your area. It usually includes the following details about homes and properties for sale:
- Pride: A home reflects its owner's values and lifestyle. Owning a home can provide you with a source of pride, enjoyment and satisfaction.
- Security: A home can provide security against inflation because the value of your home increases as prices go up.
- Stability: Being established in a community provides a sense of belonging, stability and security.
- Tax Advantages: Interest on your mortgage loan is deductible on your yearly personal income tax return. Many of the closing costs associated with purchasing your home are deductible, as are your property taxes.
Finding the Right Home
Newspaper Ads/Internet: Many people go through the real estate classified section or browse the Internet to find a home that appeals to them. However, your real estate agent will have many listings available that may not appear in the newspaper or Internet on a continuous basis. New listings come on the market daily.
Real Estate Agents: You can sit down with a real estate agent and discuss your needs, type of area, style of home, amenities and everything you really want in your next home. Real estate agents can help you by accessing a Listing Service which covers all properties listed for sale within a specific area. Together, you can select the homes you would like to see, set appointments and preview homes in a short period of time. An agent can guide you through the entire process.
Multiple Listing Service: Your real estate agent should have access to the multiple listing service if it is available in your area. It usually includes the following details about homes and properties for sale:
- Location
- Price
- Photograph
- Utilities
- Amenities
- Annual Property Tax
- Currently financing (when assumable)
- Listing Company
- When Previewing A Home
- Write notes when previewing a home so you will be able to discuss the details later with your real estate agent.
- Ask questions about the home and discuss any objections or concerns you may have.
- Ask about the community - schools, shopping and transportation.
- Ask specific questions about the construction of the home; electrical, plumbing, heating, cooling systems, etc.
Home Shopping Tips
Check For Properly Working Appliances/Fixtures:
- Sinks
- Showers/tubs
- Toilets
- Vent fan
- Heating fan
- Dishwasher
- Stove
- Oven
- Ice maker
- Garbage disposal
- Range hood
- Refrigerator
- Freezer
- Microwave
- Trash compactor
- Kitchen cabinet doors
- Drawers
- Sinks
- Lights (interior & exterior)
- Windows
- Heating system
- Ceiling fans
- Hot water system
- Air conditioning system
- Electrical outlets
- Door bells
- Doors
- Water purifier
- Fireplace damper
- Garage door
Ensure House Is Well-Built & Systems Are In Working Condition:
- Sinks
- Showers/tubs
- Toilets
- Vent fan
- Heating fan
- Dishwasher
- Stove
- Oven
- Ice maker
- Garbage disposal
- Range hood
- Refrigerator
- Freezer
- Microwave
- Trash compactor
- Lights (interior & exterior)
- Windows
- Heating system
- Ceiling fans
- Hot water system
- Air conditioning system
- Electrical outlets
- Door bells
- Doors
- Water purifier
- Fireplace damper
- Garage door
Home Inspections
What is an inspection?
There are numerous types of inspections. An inspection is meant to
evaluate,
at minimum, the structural and mechanical condition of a property. It is
not the same as an appraisal which evaluates the market value of a
property.
Persons involved in real estate transactions need unbiased information
about
the physical condition of property they plan to buy or sell and your
contract
should include a contingency that you obtain a satisfactory inspection
report.
Talk with your agent about the types of inspections available.
Home Inspectors vs. Engineers
Home Inspector: A person who examines any component of a building,
through
visual means and through normal user controls, without the use of
mathematical
sciences.
Engineering: Analysis or design work requiring extensive preparation and experience in the use of mathematics, physics, chemistry and the engineering sciences.
- Referrals from satisfied customers
- Referral from a local real estate agent or mortgage company
- Local consumer affairs office
- Yellow Pages under "Building Inspection Services"
Ask if she/he is a member of the American Society of Home Inspectors (ASHI). The ASHI has established standards of practice which include the specific services, limitations and exclusions that can be expected from private home inspectors.
What the inspection, at minimum, includes
Every inspection should include, but not be limited to, an evaluation
of at least the following:
- Foundations
- Plumbing and electrical systems
- Doors
- Ceiling, walls and floors
- Roof
- Hazardous materials concerns
- Heating and air conditioning systems
- Common areas (in condominiums)
- Insulation
- Ventilation
Answers to Frequently Asked Questions
What is the difference between "pre-qualified" and "pre-approved"?
If you are "pre-qualified" you have determined, with a loan
officer, what price you can afford based on the down payment, your debts
and the amount the mortgage company will approve for your mortgage.
Being
"pre-qualified" is only a determination of your probable credit.
If you are "pre-approved", your credit, employment and funds have
been approved by the lender.
What is a point?
One point is equal to 1% of the new loan amount. Whenever government
regulation, state usury laws and/or competitive practices prohibit the
lender
from charging a rate of interest that would make the real estate loan
competitive
with other fields of investments, the lender must seek some method of
increasing
the yield for the investors. By charging "points", the lender
can bring the real estate loan up to those other investments.
What is title insurance?
Title insurance protects the named insured against loss because of
defects,
liens, encumbrances, adverse claims or other matters not shown or
disclosed
to the new owner that attach before date of policy.
What are closing costs?
Closing costs are an accumulation of charges paid to different entities
associated with the buying and selling of real estate. For buyers, they
are usually about 4-6% of the total sales price of a property. Some of
the
closing costs you might encounter are: application fees, appraisal fee,
county taxes, credit report, discount points, documentation fee, escrow
fees, homeowners' association fees, loan fees, mortgage insurance,
origination
fees, tax registration and title insurance premium.
What is earnest money?
When you make an offer, you will need to put up an earnest money deposit
as a sign of good faith that you are seriously interested in buying a
home.
That deposit becomes a part of the purchase price and is held in a trust
account until there is full acceptance of the offer. Typically, an
earnest
money is 3-5% of the offer amount.
Is VA or FHA financing unfair to sellers?
FHA and VA loans provide purchasers the opportunity to buy homes with
minimal cash investment and at lower interest rates. The result is a
larger
market for sellers, who also benefit by receiving all cash for their
equity.