|Posted by Amy Sujanani on June 6, 2016 at 2:35 AM||comments (0)|
If you have never bought a home before or it has been a long time, it can be challenging not knowing where to start and what happens next!
I'm going to guide you down the absolute best pathway to buy your new home!
1. GET PREAPPROVED!
This is so very important! Calling a lender FIRST is the best way, TRUST ME! Not only will you then know your price range, but you will also be ready to make an offer as soon as you find your dream home! The market is changing to where buyers have to act faster than before and most sellers will NOT take their home off of the market for you without seeing proof that you’re preapproved. You don't want someone else to beat you to the house you want because they have a letter and you don't do you? Talking to a lender will also let you know your rate, what type of loan you are getting and how much your payments are going to be.
2. HOOK UP WITH A REALTOR!
Not just any REALTOR, me! seriously though, you do need to make sure it is one that will be looking out for YOU and not their pocketbook. Good realtors know what is on the market as soon as it hits and I usually set my buyers up through the MLS to be notified ASAP. Even better realtors can contact you BEFORE it hits the open market and give you first look. Make sure it is an agent that you feel comfortable around and feel like you can trust. Also, make sure they can accommodate your schedule to ensure you are looking when you can and are able to write an offer as soon as you find one so that you aren't waiting around for THEIR schedule to open up and make you miss out. Sit down with them and tell them what your needs and wants are.
3. FIND YOUR HOME!!
Go! You're ready! Find one and sit down with your agent and write an offer! Make sure they explain to you what you are signing!
4. YOU"RE UNDER CONTRACT!
Your agent will send the contract to your lender. Keep up with your lender and anything they need, get it to them as fast as possible! From contract to closing, itll take anywhere from 30 days to 60 days.
In the contract, make sure you have an inspection contingency. In our board contracts you have 20 days to get inspections done. Some bank repos allow 10-15 days. I highly encourage inspections. A few hundred dollars could be saving you thousands or tens of thousands even! Once inspections are done, you can ask for repairs from the seller. This also has to be done within that inspection contingency deadline. If the property is being sold AS IS seller to no repairs, then the inspections are more of a checklist and to ensure that anything needing fixed is something you can handle on your own.
6 REMEMBER TO KEEP UP WITH YOUR LENDER
Don't be a slacker! Also, Don't you dare go buy a car or open a new credit card before closing!!
Your lender will send an appraiser out to ensure the value is there based on condition of the property. VA is stricter on condition than FHA. FHA is stricter on condition more than a conventional loan appraisal.
8 FINAL WALKTHROUGH
This is done right before closing. This is to ensure you are happy with the condition of your home and to make sure the repairs the seller had agreed to are done.
9 CLOSING DAY!!! YAY!
The day has finally arrived!! You will sign a huge stack of papers and get your keys!!
Your realtor will have a lot to tell you more in depth with each of these steps. It's very important to listen to them. If you picked one you trust and that is looking out for you, they are doing just that!
Any questions??? As always, feel free to just ask!! Thank you for reading and happy buying!
|Posted by Amy Sujanani on May 22, 2016 at 10:50 PM||comments (0)|
I’ve had a lot of buyers in the past not know the answer to this question. Mostly because it depends...on a lot! Ill separate them into categories for you and this is ALL upfront, before you close and get the keys. Please note that these are close estimates.
Earnest Money Deposit
When you find a house and write an offer, you will most likely be asked to put down earnest money. Earnest money is money from you that is put into an escrow account and holds the house off the market while you do your inspections and your loan processes, You will get this money credited back to you-when you close. The amount depends, it can be $500.00, $1000.00, or it can be a percentage of the purchase price. The seller usually determines the amount, however, you can try to put anything you'd like in that blank on the contract. If the seller desires more, you will know!:D
It is always highly recommended for you to get inspections done on the house you are buying. I highly recommend them! There are many different types that you can have done.
Whole house inspection- this is what it sounds like. the inspector will go through and look at everything he has access to and can see. It takes 3 to 4 hours and costs about $225-$275 depending on the inspector.
Termite- Have a termite inspector come out and look. This costs $35-$75.00
Radon Testing- This is something more & more of my buyers are doing. Radon comes from the ground and is said to be the leading cause of lung cancer. A radon test takes 2 days and costs anywhere from $150-$175.
There are other inspections that you can do, I've never had a buyer do any of them, but they ARE there. For example, mold, lead based paint, and any further inspectors/contractors can come out to check roof, plumbing, electrical, mechanicals, foundation etc. The whole house inspector will note on his report if there's something that needs to be checked further. You can also pay a surveyor to come out and mark where the boundary lines are for a fence or something, To have something surveyed usually costs around $800.00 to have done.
Again, I highly recommend you to do inspections. a few hundred dollars could save you from buying a money pit and save you thousands to tens of thousands of dollars later.
The lender that I have been sending my buyers to lately does not ask for this upfront, but charges it to you at closing. Some lenders want it from you upfront though. An appraisal will cost around $ 400.00.
This is dependent on a few things--- who your lender is, what type of loan you are getting, what percent you are putting down, the price of the house you are buying, and if you qualify for any grants or not. If you are getting an FHA loan, you will only need 3.5% a conventional loan, 5%-20%, VA loan -0% . Some loan programs, if you qualify for them, will only require $100.00 down. If you qualified for the grant, $1000.00. This is very dependent on the list of things I mentioned.
This does not appear very often. If the house you are buying has a buyer premium attached to it, itll be disclosed to you. This will be added to your closing costs.
Some realtors charge their buyers a buyer premium at closing, I do NOT.
Closing costs are what the title company and lender is charging you. Generally, it is around $2000-$2500, depending on the lender you choose. You CAN ask for the seller to pay for these on your behalf in the contract when you are negotiating in the beginning.
At closing you will have all of your debits (appraisal, closing costs, down payment etc) and your credits (earnest money, loan, tax credit from the seller etc) applied to you at closing. whatever is left is what you will bring in to closing.
So to recap, appraisal, down payment, and closing costs you are bringing it to closing with you. The earnest money and inspections, upfront at the beginning. Any questions??? Just ask! It is my job to help when & where I can. I enjoy my job and I enjoy helping others !8)