The Top 10 Things You Need To Know Before Purchasing Your New Home
One of the best parts of a real estate agent’s jobs is helping you find ‘the one’. Watching your face light up as we drive up to your dream home is nothing short of magical. “Find the one,” is an agent’s mantra. Understanding your wants and needs even before the financing stage will prove to be crucial step in this process. If you haven’t already, write those wants, needs, and desires down! Ask yourself: “Why do I want a new home? What is my motivation?” “Where will I want to live?” “When do I want to relocate?” Getting answers to these questions can dramatically help your realtor guide you through the home-buying process.
There is a difference between a desire for more and a desire for a thing. Despite this difference, both of these desires exist in the homeowner at the same time. One of the deciding forces that can or can’t satisfy those desires is the financing company. They get the final say on whether you can get what you want or what you can simply get or whether you can have both. Knowing your purchasing power is one of the most crucial first steps to home-ownership. If you are thinking it is time to purchase a new home, then your very first stop will be the lender’s office to determine what type of loan you qualify for, and how much the banking institution is willing to loan you. Not sure who your lender might be? Not a problem. We can help determine the best financing company for you to use based on your needs.
Buying a new home is a roller coaster of emotions: happiness, sadness, anger, anxiety, frustration, remorse. These can and more than likely WILL be emotions we go through during the home buying process. Understanding that this process is a common one is 1000% necessary to move forward effectively. There will be times when we will be happy (We found the one!). There could be sadness (The home we fell in love with sold just after we decided it was ‘the one’). Anger is possible as well (see ‘sadness’). There could be remorse.
You will more than likely question every single step of this process and wonder if you’re making the right decision; or if this is really something you should be doing right now. Knowing in advance that these emotions are normal will help you get through the home buying process with your mental and physical health in tact. I’ve personally gone through these with a number of clients. As long as we understand what our needs are, and we remain in this process together, we will prevail. Once you’ve been approved and we’ve located the home you wish to make your own, we then begin the offer process.
After we’ve submitted an offer, a couple of things are possible.
There are other scenarios based on what type of home we are looking at, but these are the most common. Given that we currently sit in a seller’s market, the local inventory is not on the shelf for very long. We are more likely to experience a multiple offer situation. Having someone on your side that you trust and that has seasoned expertise with the home buying process is crucial to protecting your best interests!
Once you’re offer has been accepted, you will enter the contracting phase of the selling process. This can be a slightly complicated step because these are the specific terms of your home purchase. Most real estate companies carry what is called “Errors & Omissions Insurance” to protect everyone involved in the transaction should there be any mistakes. Walking into this phase of your home-purchasing process without the proper knowledge of the legal aspects of this process could cost you must more than a small commission check. Any deposit that is required to purchase your home (determined by the lending institution) will be placed into a special trust account as determined by your contract.
You’ve been approved to buy a new home. You’ve located the home of your dreams. We’ve put in an offer and we’ve fought together to get you the greatest deal. We’ve submitted all the necessary paperwork. Now, we place our trust in the appraiser’s hands as he confirms how much the said property is worth. The appraiser’s job is to make sure that actual value of the home is what is listed in the contract. If the numbers don’t match, or aren’t close, there are a number of scenarios that can result. The worst of these is the loss of the contract on the home you love. Partnering with the right people through this process to avoid that worst case scenario is instrumental and is not something to take lightly.
“Would you like a home inspection with that?” YES!
An inspection is another important part of the home buying process. We want to make sure, the lender especially, that the home you are about to purchase is as described and that any major problems are either fixed or, at the very least, disclosed. If you are working with the right agent, these problems can be addressed on your behalf ahead of time and fixed BEFORE your purchase is finalized. There is a fine line here between getting things done and getting an offer withdrawn by asking for too much. Sometimes deals fall apart because the buyer and the seller disagree over who should fix what. The right real estate agent will fight on your behalf to get what you deserve and be honest enough to let you know when it’s time to move on.
Make sure you have partnered yourself with a real estate company that prides itself on quality customer service. Ensure that those that you do business with are doing business with like minds and that they are working with the best in the business. Your agent is going to have preferred partners to work with, like lenders or inspectors, that will help you navigate through the world of options and paperwork. Once you’ve completed the home-buying process up to this point, it will be time to make sure that you and this process are protected to the “nth” degree. Make sure that your preferred partners are trusted and reliable. If you build a trusting relationship with your real estate agent, you can rest assured knowing they have similar relationships with their business partners.
It’s now all about confirmation: documents, dates, costs, etc. In most cases your file will be reviewed by an attorney who will confirm that your Title Insurance is good and your Homeowners Insurance will be put in place. Once we’ve confirmed these policies and figures, we will determine when and where we will close on your new home! We will know exactly what our final settlement amounts are and exactly how much your closing cost will be. Then, we wait very patiently for closing day ensuring EVERYTHING that was in place remains in place. We wait patiently for the day to arrive when we sign your paperwork and hand over the keys to YOUR brand new home!
You’ve arrived. Take some time to absorb it. We place our final signatures on our final paperwork. We get the keys and we go to your brand new home. We pull up and experience the most magical moment of this entire process. You’re now officially a homeowner; or, in some cases, a NEW homeowner!
You’ve heard it before, but it’s worth saying again: Nothing worth having comes easy. Nothing that comes easy is worth having.
The home-buying process is by no means easy. That being said, it can be made easier depending on the guide you choose to navigate you through the more challenging steps, to help you survive the roller coaster of emotions. That person that can make or break this process for you. For home buyers, the next best thing to finding the perfect home is finding the perfect realtor. It is my mission and the mission of my team to serve you perfectly. We honor that mission. We honor that commitment.
Knowing what to do is one thing. Knowing how to do it is another. When you’re choosing a real estate agent, make sure you choose one that knows how to get things done. Make sure you choose one you can trust as much as your new home.