BUYING A HOME
Buying a home is a complicated process, especially for a first time home buyer; between finding the right home, different mortgage programs, and interest rates, property taxes, writing a purchase agreement and negotiating the deal. Then after, obtaining a quality home inspection, dealing with appraising and title documents, 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! It is very important for us that you feel comfortable with the process of buying a home. Without the stress, you will purchase the right home for years to enjoy! We will help you to navigate the real estate market and do the proper steps to avoid costly mistakes without wasting your time. Ready? Then let's get started!
FIRST STEP: START WORKING ON YOUR DOWN PAYMENT
How much do you need? In the perfect world, down payment on the mortgage should be 20% of the loan amount to avoid added fees. 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 10 %, 5%, 3% and even 0% for certain types of mortgages.
Also, many lenders we 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 down payment and will match 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. And yes, you need a decent credit score to qualify for a good interest rate, which will allow you to save on the monthly mortgage payment. Get your annual FREE CREDIT REPORT HERE without getting scammed and learn more about it. 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 you pre-approved!
First of all, we need to know how much home we can look for, and second, knowing that you have available cash in your pocket is going to give you the confidence of a strong buyer. It will also equip you with a powerful tool to negotiate the best possible price! If you don't have a loan officer who you are already committed to, you can talk to our Trusted Lender. We are working with Sandy Talberg for over ten years, and 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!
We attach our Pre-Approval letter to show that you are a strong buyer that is ready to buy.
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 saying, we negotiate the right price according to market value for you. Based on your terms and home's condition, we should present the offer in a way that will be accepted.
STEP N 6: INSPECTION
A home inspection is when you have the opportunity to hire a Professional Home Inspector to check out the house from Top to Bottom for potential defects.
Some problems may make you re-think your decision to buy the house. Think about faulty foundation, structural damage, mold, and so on. Some defects maybe just a matter of money and another reason for negotiating: leaky plumbing, electrical updates, etc. Of course, nobody can guaranty the absolute condition of the property, 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.
In the state of Minnesota, sellers must comply with certain disclosures rules, and as your real estate agent, we will ensure that they do, as well as answer any questions you may have during the process.
We have to make sure that your offer is presented on updated forms kept up-to-date with the changing laws to protect your interest as much as possible.
We can only recommend the price you are offering. The final decision is yours to make! Just remember, as long we're always trying to negotiate the lowest possible price for you, it doesn't mean we should offer a price which you think will not be acceptable. If your offer is too low for the sellers, they may reject your offer; there is always a risk!
Sellers may reject your offer, counter your offer, or accept it. We need to be ready for any scenario and act accordingly.
Your Offer is finally signed and accepted! What is next?
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. Lenders are not emotional compared to you as the buyers who are buying home for yourselves. Banks just want to see that your purchase is a good investment. It's kind of a Home Inspection just for the lender.
If you offered to much and the house is not appraised, the bank may refuse to give you the loan.
That's why it is important to have an agent who knows what he or she is doing to protect your interest, guide you, and explain the process. Our experience and expertise will help you to succeed.
STEP N 8 : CLOSING
Closing is the day when you are officially becoming the owners! You are signing a promise to the bank to repay your mortgage. You are also paying 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. Those 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, and Real Estate administrative fee. 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
Are we done with closing? Got your loan! Changed the status from home buyers to homeowners! Now you know that the home buying process is not so scary and frustrating after all, especially with a friendly and knowledgeable agent from BLIS, who we hope will become your lifetime friend and home adviser! Now it is a time to kick back and enjoy 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 enjoy specials of our handyman referral service. Services we recommend reputable, reliable, and always available for our clients.
You also may enjoy our BLIS HOME DESIGN services with the special rates available only for our clients! We want to make sure that you are happy with the purchase! It is very important for us that you will keep in touch, and have us in mind for all your Home and Real Estate Needs!