BUYING A HOME
Buying a home is a complicated process, especially for a first time home buyer.
So many questions have to be answered, so many concerns to be addressed:
Finding the right home, analyzing different mortgage programs, and discussing interest rates and property taxes
Writing a purchase agreement and negotiating to your best advantage
Obtaining a quality home inspection, ordering the appraisal and title documents
Attending the final walk-through and DELIVERING SUCCESSFUL CLOSING
It is very easy to feel frustrated and overwhelmed. Not surprising! After all, it's one of the largest investments you are planning to make. Of course, you want to make sure everything is done right! That's why finding the right agent is a critical first step, and we are very thrilled to welcome you to work with us! We will help you to navigate the real estate market and take the proper steps to avoid costly mistakes and make the entire process as stress-free as possible. We are excited to assist you in purchasing the right home that you will enjoy for many years to come!
Ready? Then let's get started!
We begin with the overview- what are your goals?
Where are you want to live? How much do you want to spend? Let the search begin!
FIRST STEP: START WORKING ON YOUR DOWN PAYMENT
How much do you need? It depends. In the perfect world, down payment on the mortgage would be 20% of the purchase price to avoid added fees. However, if you don't have this amount, it's not the end of the world! It is possible to purchase a home with a down payment as low as 3 to 5 percent down, and even with no money down certain types of mortgages.
Also, many lenders are working with offer programs that assist with the down payment for those who qualify. We also work with a loan program that helps you save for the down payment and will contribute up to $ 1,500. Check with us how you can register to qualify!
STEP 2: CHECK YOUR CREDIT SCORE
Additional to a down payment, banks want to make sure that they loan money to a responsible party who will pay it back. This is why your employment will be checked along with your credit score. Get your annual FREE CREDIT REPORT HERE! If you checked your score and you don't like the result, talk to us as soon as possible. There are many things you can do to improve your credit score, and we can guide you how.
STEP N 3: GET PRE-APPROVED
Before we start shopping, you will need to get pre-approved!
First of all, we need to know how much home you will qualify for, and make sure your offer will give the seller confidence that you are a strong buyer. This will equip you with a powerful tool to negotiate the best possible price! If you don't have a loan officer, you are already committed to, you can talk to our Trusted Lenders. We are working with Sandy Talberg for over ten years, she provides outstanding customer service. Also, Robert Price, who has over 30 years of lending experience. Robert not only has extremely competitive loan programs, but he also makes the financing puzzle easy to understand. None of our clients were ever disappointed!
READY FOR THE STEP N 4?
WE ARE GOING HOME BUYING!!!!
This is the fun part! Waking up every morning with the excitement to open new emails from us and find what is new on the market and what we need to see! Maybe today is THE DAY! The day when we found Your Dream Home! And YES, let's say we do found it. What is next?
STEP N 5:
Of course, the next step is to start talking to the sellers, and how are we do this you may ask? Like marriage, home buying is one part of love and another part of the financial transaction. Oral promises are not acceptable nor legally bounded. We put our offer in writing! We call it a Purchase Agreement!
The Purchase Agreement with stipulate the terms of your offer ( how much you are offering, the downpayment, the type of financing, the closing date, and many other aspects of the transaction ).
We guide you in the proper structure of this important legal document, and attach your Pre-Approval letter so the seller understands you have the ability to follow through and "close the sale".
Our job as your agent is to make sure you are paying a fair price for the property, regardless of how badly you want it. Simply stated, we negotiate the price according to market value for you. Based on your terms and the home's condition, we present the offer in a way that will be accepted.
In the state of Minnesota, sellers must comply with certain disclosure rules, and as your real estate agent, we will ensure that they do, as well as answer any questions you may have regarding the property during the process.
We make sure your offer is presented on the necessary updated forms, complying with the changing laws in order to protect your interests as much as possible.
We can only recommend a price you will present to the seller. As we are knowledgeable about market value, this is a very critical part of our service to you. However, you are the determiner of the final number. Just remember, negotiating the lowest possible price to purchase is a strategy we are skilled at performing. Offer too low, and the seller may simply reject. Offering the "right" price will result in either acceptance or counter-offer.
Your Offer is finally signed and accepted! What is next?
STEP N 6: INSPECTION
A home inspection is where you have the opportunity to hire a Professional Home Inspector to check out the house from top to bottom for potential defects.
Some defects may be easily addressed by re-negotiation of the purchase price. More serious problems may cause you to decide to look for a different property, Think about faulty foundation, structural damage, mold, and so on.
Of course, no one can guaranty the property is 100% perfect, but at least you will have a general knowledge of the product you are buying and estimate the cost of repairs, if any, you are assuming.
STEP N 7 : APPRAISING
Even if you are pre-approved for a mortgage, your lender will want to make sure that you are not overpaying for the house. A certified and approved appraiser will inspect the home and compare it to other similar homes in the neighborhood that have sold recently. Once completed, it will state valuation that will determine how much Bank is willing to lend.
It's a kind of Home Inspection for the Lender.
If the number is higher than what you offered, nothing changes. If it is lower, you now have two choices: you can walk away and have your deposit (earnest money) refunded, or you can re-negotiate with the seller and pay less then your original offer if the right contingency was placed on the purchase agreement.
STEP N 8 : CLOSING
Closing is the day when you are officially becoming the owner, and receive title to the property. You will sign a large number of papers that delineate your rights and responsibilities and making a promise to the bank to repay the loan. You will also pay your down payment for your loan, closing cost, and fees for processing your loan and title work. Closing cost averaging between 2 and 7% of the home price. These fees include: loan origination fee, fee for running your credit report, fee to underwrite and assess your creditworthiness, fee for the appraising, title search, survey fees if single house and not a condo, private mortgage insurance if your down payment is less then 20%, discount points if any, your portion of the property tax. It also may include documents recording fee for the deed or mortgage, buyers attorney fee if attorney involved... Don't worry... we will be present at every step to explain and advise you on this purchase!
The Closing day is THE DAY WHEN YOU ARE OFFICIALLY GETTING THE KEYS TO YOUR NEW HOME! CONGRATULATIONS, YOU ARE THE OWNER!
STEP N 9 : MOVING
After the closing, it's time to move into your new residence! All through this process, we have been your guide and now you realize that search for a home is not something that is scary and frustrating, especially with a friendly and knowledgeable agent from BLIS! We hope to remain as your source for any real estate questions or problems you might encounter in the future and hope the friendship developed between us during your home-buying journey continues for many years to come!
Now it is time to kick back and enjoy the many benefits of being a HOMEOWNER!
LIFE TIME RELATIONSHIP
BEFORE YOU GO, DON'T FORGET TO USE YOUR
BLIS CLIENT BENEFITS
As a BLIS valued buyer, you will be able to utilize our handyman referral service. We have reputable, reliable, and competitively priced contractors available for our clients.
You may also enjoy our BLIS HOME DESIGN services, with special rates available should you have a need or desire to make any changes to your home. It is very important to us that you are happy with your purchase!