Critical Steps to Navigate the Process Peacefully and Effectively.
- Find a Qualified Broker Who Will Be Your Partner
- Ask questions seeking information about knowledge and accomplishments helping clients win!
- Friends and family are lovely, but be careful that they have the experience and knowledge before taking advice.
- Make sure the broker has a strong team and network of resources.
- Check on their negotiation skills, process knowledge, and references.
- Get the Financial Details Early
- A well-connected broker will have great contacts for lenders and resources to understand the overall costs of buying a home.
- Once you speak with a lender, your spending criteria will be set and you should have a good faith estimate of your closing costs.
- Get your pre-approval letter before you shop so you are ready when you find a home you love.
- Narrow Down Your Needs Vs. Wants
- Now that you have the financial aspect clear, you will want to start narrowing your location. What is the most important for your family now and in the future, your commute, the type of community, and the inclusions and the layout of the home?
- Have a criteria conversation with the broker discussing your ideal home and be open to ideas based off your financial capacity.
- Shop With a Plan and Learn Along the Way
- Once you have a plan with the broker, setting up showings and seeing properties is the next step.
- Your criteria may change when you see properties, start paying attention to what compromises you may make to get aspects of the home you really want.
- After seeing 5-10 properties, your criteria should be narrowed further. Most of our clients go out on 3-4 showing excursions before finding a home.
- Make an Offer – Always Negotiate and Be Careful!
- Work with your broker to determine the best price for the property and re-assess how it fits your needs and criteria.
- Get a market analysis to show you recent sold properties to justify the value.
- Outline a strategy to purchase, including negotiating tactics and bottom line numbers.
- Be careful of contract loopholes and deadlines
- Confirm your offer once you are 100% comfortable.
- Submit earnest money. An effective broker watches closely for every possible threat and protects your earnest money.
- Inspection and appraisal are also times to negotiate, so make sure to have guidelines and a plan for items that come up.
- Closing and Your HOME!
- The final day can be stressful, but if you have completed these steps you are ready for closing.
- Do a final walk through of the home
- Review the settlement statement with your lender
- Have your funds ready for closing – cashier’s check or wire
- Bring your driver’s license to closing
- Have the location and time confirmed with the title company
- Be ready to sign a lot of paperwork
- Get the keys and head home!
The home buying process is tricky to navigate, but it can be very hassle free and stress free if you know these steps ahead of time and by working with a qualified agent. In addition, here are a few estimates of anticipated costs to consider during the home buying process.
Credit Check – up to $30 (usually, but it’s up to the bank)- Appraisal – around $400 (but also up to the bank)
- Earnest Money – $1,000+ (depends on purchase price)
- Inspection – $200-400
- Radon Test – $100-200
- Sewer Scope – $99-125
- Closing Costs – $3,000+ (depends on purchase price)
- Down Payment – usually 5%-25% of purchase price
- Having two months loan payment in reserve
- Appliances
- Moving Costs