6 TIPS FOR SUCCESS
STEP 1: GET A REALTOR
Buying and selling real estate is a complex matter. At first it might seem that by checking local real estate websites you could quickly find the right home at the right price. But a basic rule in real estate is that all properties are unique. No two properties -- even two identical models on the same street -- are precisely and exactly alike. Homes differ and so do contract terms, financing options, inspection requirements and closing costs. Also, no two transactions are alike.
In this maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and understand the constantly changing real estate market.
As your Realtors, we will provide you with information detailing current market conditions, financing options and negotiating issues that might apply to a given situation.
Remember: Market conditions are constantly changing – we help you navigate the market and protect you throughout each step of your Real Estate transaction.
STEP 2: GET A LOAN PRE-APPROVAL
We routinely counsel our clients to begin the mortgage process well before writing on a home. Our mortgage partners will meet with you either on the phone or face to face – to review loan options.What does Pre-approval mean?
"Pre-approval" means you have met with a lender, your credit files have been reviewed. Based on this information, the lender will provide a pre-approval letter, which shows your borrowing power.
Although not a final loan commitment, the pre-approval letter will be a part of the Purchase Agreement and good Listing Agents will want to ensure you are pre-approved by a reputable lender. It demonstrates your financial strength and shows that you have the ability to go through with a purchase.
STEP 3: THE FUN BEGINS
Buyers are looking at a moving target in a marketplace that is never static. Because of this, it is important to know as much as possible about the choices in preferred markets, and the way to do that is by working closely with our team who are experts on the market and housing inventory.What are you looking for?
Each of us is different and so it's important to list the features and benefits you want in a home. Consider such things as pricing, location, size, amenities and design.
What's important to your lifestyle? Lake views? Running Trails? A quick commute or easy access to shops? If you have children, what are you looking for in a school? Is a “Green Home” part of your criteria? Or are you primarily concerned about re-sale?
There's no PERFECT home but at Stafford Family Realtors, we will work with you to help you define and prioritize your needs and wants and help you find a house that you'll be proud to call your home.STEP 4: MAKE AN OFFER
No aspect of the home buying process is more complex, personal or variable than negotiating between buyers and sellers. This is the point where the value of an experienced Realtor® is clearly evident because we know the community, have seen numerous homes for sale, we know local values and have spent years negotiating real estate transactions.What about an Inspection?
A number of inspections are common in residential realty transactions. The most common is a Complete Home Inspection paid for by the Buyer to determine the homes condition.
We are also recommending Radon inspections as a standard part of the inspection process. In addition, some properties will require surveys to determine boundaries.
STEP 5: SECURE FINANCING & INSURANCE
There are thousands of loans available out there from a variety of lenders, but in general, the mortgage you choose will likely be determined by at least several key factors:- How much down? If you place less than 20 percent down, lenders will want the mortgage guaranteed by an outside third party such as the Veterans Administration (VA), the Federal Housing Administration (FHA) or a private mortgage insurer (PMI, or private mortgage insurance, is required by lender to protect against any mortgage defaults).
- Are you a first-time buyer? It might seem that "first-time buyer" means someone who has never owned property before, but under most state programs, the term refers to those who have not owned property within the past three years. State-backed first-timer programs often feature smaller down payments and below-market interest rates.
There are various forms of insurance associated with home ownership, including these major types:
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Title insurance: Purchased with a one-time fee at closing, title insurance protects owners in the event that title to the property is found to be invalid. Coverage includes "lenders" policies, which protect buyers up to the mortgage value of the property, and "owners" coverage, which protects owners up to the purchase price. In other words, "owners" coverage protects both the mortgage amount and the value of the down payment.
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Homeowners' insurance provides fire, theft and liability coverage. Homeowners' policies are required by lenders and often cover a surprising number of items, including in some cases such property as wedding rings, furniture and home office equipment.
STEP 6: THE CLOSING
What to expect.
At Closing, the title to the property is transferred from seller to buyer. The buyer receives the keys and the seller receives payment for the home. From the amount credited to the seller, the closing agent subtracts money to pay off the existing mortgage and other transaction costs. Deeds, loan papers, and other documents are prepared, signed and filed with local property record offices.
At closing itself, all papers have been prepared by closing agents, title companies, lenders and lawyers. This paperwork reflects the sale agreement and allows all parties to the transaction to verify their interests. For instance, buyers get the title to the property, lenders have their loans recorded in the public records and state governments collect their transfer taxes.
The papers you received at closing are extremely valuable, so hold on to them! In the short-term they can help establish tax deductions for the year in which the property was purchased. In the future, such papers will be important for tax purposes when the property is sold, and in some cases, for calculating estate taxes.
About two weeks after closing, contact your local property records office and confirm that your deed has been officially recorded. Such records are public notices that show your interest in the property.
At Stafford Family Realtors, we will personally attend the closing with you. Our relationship doesn't end at the closing table! We will continue to be a resource for you and your family as you settle into your new home and community. You're part of our family of clients and you're now on the guest list for our fantastically fun Client Events!