Steps to Buying a Home

Steps To Buying A Home


1) You Decide To Buy A Home

There are solid financial reasons to support your decision to buy a home, and, among these, equity buildup, value appreciation, and tax benefits stand out.

Base your decisions on facts, not fears

  • It’s very likely you can afford to buy if you are paying rent

  • There is never a wrong time to buy the right home

  • Find a good buy and make sure you have the financial ability to hold it for the long run

  • The lack of a substantial down payment doesn’t prevent you from purchasing a home

  • Your credit score doesn’t need to be perfect to buy a home

  • The best way to get closer to buying your dream home is to buy your first home now

  • Call me to find out if you are eligible to purchase a home – you won’t know unless you try

 

2) Hire Your Agent

It is the responsibility of your real estate agent to coordinate all the professionals involved in your home purchase and to act as the advocate for you and your interests throughout.

Primary Roles of Your Real Estate Agent

  • Educates you about your market area

  • Listen to your wants and needs

  • Guides you to homes that fit your criteria

  • Coordinates the work of other needed professionals

  • Negotiates on your behalf

  • Checks and double-checks paperwork and deadlines

  • Solves any problems that may arise

 

3) Secure Financing

The thought of home ownership is exciting while the idea of taking on a mortgage may be downright terrifying.  It only takes a few days to get financing preapproval and will give you more power when you submit an offer.

Steps to financing a home

  • Choose a loan officer or mortgage specialist

  • Submit a loan application

  • Get preapproved, NOT prequalified

  • Determine how much you want to spend

  • Submit an accepted contract to lender

  • Loan officer orders an appraisal on home

  • Obtain funding at closing

 

4) Find Your Home

Hopping in the car to look at homes is probably the most exciting part of the home-buying process; however, driving around is fun for only so long.  That’s why it’s important to carefully assess your values, wants, and needs, before jumping in the car.

Assess what is important to you

  • Drive through the neighborhoods to determine the area

  • Research the school district for kids and resale value

  • Determine the lot size and size of home; one or two-story

  • How many bedrooms and bathrooms

  • New home construction or resale home

  • Make a list of must-have features and amenities

  • Have a wish list of items not on must have list

  • Drive by homes before scheduling appointment

 

5) Submit An Offer

You found your dream home, so now what?  Time to write an offer and put on your businessperson hat.  You need to approach this part of the process with a cool head and a realistic perspective of your market.  The three basic components of an offer are price, terms, and contingencies.  Your agent’s market research will guide your decision on the fair price to offer and the terms to be included in the offer.

Terms included in an offer

  • A schedule of contingencies that has to happen before closing

  • Items that convey with the house when the seller leaves

  • Home warranty company, plan, and amount for the seller to pay

  • How much earnest money to put down for serious offer

  • The days and amount for the option period

  • Seller paid closing costs, if any, to be written into the contract

  • Lender determines a realistic closing date

 

6) Perform Due Diligence

Unlike most major purchases, once you buy a home, you can’t return it if something breaks or doesn’t quite work like it should. 

The importance of a home inspection

  • Your agent should schedule the home inspection before going under contract

  • Days for option period needs to accommodate inspection and repair negotiations

  • Your inspector will bring to your attention any concerning issues

  • Don’t sweat the small stuff that can easily be fixed

  • Get a second opinion for any major issues and walk away if confirmed

 

7) The Closing

When you hear the words “Clear to Close,” it will be music to your ears.  Those words are the lender’s confirmation of your continued credit-worthiness and of the home’s value. This entails a survey, appraisal, title search, and a final check of your credit and finance. Although it’s not a done deal until funding, you should be able to rest easy at this point.

Prepare for Closing Day

  • Schedule your closing with the title company

  • Transfer utilities

  • Wire the required funds to close the day before

  • Conduct a final walk-through

  • Review the closing statement for all the contract terms

  • Bring your Driver’s License to the closing

 

Congratulations and Welcome to Home Ownership!

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Hours

Monday9:00AM - 6:00PM
Tuesday9:00AM - 6:00PM
Wednesday9:00AM - 6:00PM
Thursday9:00AM - 6:00PM
Friday9:00AM - 6:00PM
Saturday10:00AM - 7:00PM
Sunday11:00AM - 7:00PM

Dani Whitacre, Realtor®

8300 N. MoPac Exp., Suite 110,

Austin, TX 78759

Phone. (512) 689-7495

Email. Dani@DaniWhitacre.com

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