House Buyers

DO YOU WANT TO BUY A HOUSE?

Did you know that it doesn't cost you a dime to use a Realtor® in your search to buy a new home?  Whether you're a first time home buyer or not, I can help you find the perfect house to fit your needs!

The Home Buying Process

If you are preparing to buy your first home you may be feeling overwhelmed. Should I start calling the numbers on all these For Sale signs and start looking at houses? What do we do if we find "the one?" Using a Realtor® will help make the process of buying your new home easier. That's where I come in! I can help you manage all of the steps to buying your first home or your fifth home (and everything in between).

So now I bet you're wondering what the steps are to buying a home, right? I'm glad you asked! Here are the basic steps involved. There could be additional steps depending on the situation, but in a perfect world here's what you can expect:

1. Choose a Real Estate Agent. Call several and find one that you really connect with. If you don't get along with your Agent it's going to make working together much more difficult. You want to find  an Agent that will be open and honest with you and one that you can be open and honest with as well.

2. Find a Lender and get Pre-Approved for a Home Loan. This is a very important step. Please don't skip it. You will have more negotiating power if you get pre-approved for a loan. Home sellers want to know that they are negotiating with someone who will be able to follow through to the closing table.

3. Begin the Home Search. This is where it gets exciting! The agent that you have chosen to work with will begin sending you homes to consider. They will schedule appointments to look at homes with you and you may even find "the one" in the first few that you see (if it takes longer - that's OK!). Also, as you are driving around town, if you see any For Sale By Owner (FSBO) homes that look appealing, let your agent know. In many cases, your Agent can show you FSBO's too!

4. Find "The One" - Let's Make  Deal! So you've looked at a few (or more!) homes and think you've found the perfect home. Congratulations! Your Agent will now:

    Write up a contract.

    Review the contract with you and explain all the legal lingo.

    Negotiate with the Seller or Seller's Agent to get you the best price.

5. Inspect the property. This is the time to inspect the house for any hidden problems. You can use the inspection period to evaluate the heating & cooling systems, the septic system, termite problems, mold, radon, etc.  You can inspect anything you want to inspect during this period of time. The cost of the inspections are paid by the Buyer.

6. Negotiate any Inspection Items of Concern. Once you have the home inspected, you may have had some issues pointed out to you that should be repaired. If there are inspection items that you would like the Seller to repair before you purchase the home, your agent will negotiate these for you.

7. The Property is Appraised. The Bank/Lender that you chose at the beginning of the buying process will contract with an appraiser to view your chosen property and estimate its value. If the property appraises below your accepted offer there may be more negotiating to do.

8. Title Search is Run. The Bank/Lender that you chose at the beginning of the buying process will also run a title search on your chosen property. This will help to ensure that the property you are about to buy has no liens against it or any other hidden issues related to the property.

9. Set a Closing Date. Your chosen Lender will be in touch with you to set a closing date and time. There is some wiggle room on the date/time of your closing, so if there is a conflict let your Lender know; they may be able to work with you.

10. Do a final walkthrough. It is always a good idea to walk through the home a day or two before you go to the closing table to make sure that the house is clean and that no unwanted "items" have been left in the house. I have seen people try to leave beds, fish tanks (complete with fish), and other unwanted items behind for the new owners to try and get rid of. The Seller should remove all items from the home; your agent can work to get unwanted things removed.

11.  It's Closing Time. In the Commonwealth of Kentucky the Buyer and Seller will usually be present to sign all the necessary documents and pass over the keys (unless otherwise negotiated).

12. Go Home! Congratulations! You just bought a new home. You can move in whenever you're ready.

Courtesy of the National Association of Realtors®, below are a few creative financing tips to help you afford that dream home.  These tips are useful for not only the first time homebuyer but seasoned veterans as well.  Want more information or have questions? 
Contact me at Kelly@Kelly-McDonald.com and I'll be happy to help!

6 Creative Ways to Afford a Home

If your income and savings are making home buying a challenge, consider these options.

1. Investigate local, state, and national down payment assistance programs. These programs give loans or grants to cover all or part of your required down payment. National programs include the Nehemiah program, http://www.getdownpayment.com, and the American Dream down payment fund from the Department of Housing and Urban Development. http://www.hud.gov/news/release.cfm?content=pr02-014.cfm

2. Get the seller to provide financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you do with a mortgage.

3. Consider a shared-appreciation, or shared equity, arrangement. Under this arrangement, your family, friends, or even an third-party may buy a portion of the home and thus share in any appreciation when the home is sold. The owner/occupant usually pays the mortgage, property taxes, and maintenance costs, but all the investors' names are usually on the mortgage. There are companies that can help you find such an investor if your family can’t participate.

4. Get help from your family. Perhaps a family member will loan you money for the down payment and/or act as a cosigner for the mortgage. Lenders often like to have a cosigner if you have little credit history.

5. Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward your down payment. And in many cases, owners will apply some of the rental amount toward the purchase price. You usually have to pay a small, nonrefundable option fee to the owner.

6. See if you can qualify for a short-term second mortgage to give you the money to make a higher down payment. This may be possible if you have a good income and little other debt.
 

Have questions?  Ask me!