Countdown to Closing !

If you are a first time home buyer or it’s been awhile since you’ve experienced a Real Estate transaction, here is a time line of what to expect throughout the home buying process:

1) Get a copy of your credit report is the first step. A website I like to use is PrivacyGuard
2) Make a budget and determine how much you can afford. Keep in mind lenders will often approve you for a loan higher than you realistically can afford. A good estimate is 30%-40% of your net monthly salary towards a mortgage payment.

3) Pick a mortgage broker. Mortgage brokers have a pulse on the market and often times work with you to create the best plan that fits your particular needs.

4) Select a Real Estate Agent to help you “house shop”. Working with a Buyers Agent has many benefits to a buyer and what’s more, there is typically no charge for you to work with a buyers agent.

5) Apply for a mortgage & get pre-approved. Receive a copy of the pre-approval letter.

6) Shop for homes! When looking, keep in mind this is not only a place to live, but an investment. You want to make sure you 1) want to live there 2) it’s a good investment from a resale perspective. See what makes a home more “sell-able”.

7) Once you’ve selected a house you like, come up with a price point you are comfortable with (talk to your buyers agent regarding comps) and write an offer !

Stay alert and available during the negotiation process due to deadlines, your buyer agent will need to be able to get ahold of you so try to be available for the next few days once you put in an offer.

9) Once the offer is accepted, both parties will have a sign offer to purchase.

10) Depending on what contingencies you designated in the offer, there is a time frame in which those are to be satisfied. Standard contingencies are inspection & financing. Usually it is 7-45 days, depending how it was negotiated in the offer to purchase.

11) Home Inspection typically comes prior to the financing. Mainly because if the inspection doesn’t pan out & you no longer want the home you didn’t also pay for an appraisal of the property, which the lenders will charge you for.

12) Submit for a formal loan application. This is where the appraiser goes out and appraises the home to make sure the bank is not lending money to a home that doesn’t hold a similar value to the purchase price.

13) Purchase home owners insurance (if the sellers aren’t including it).

14) Receive an offical loan committment letter from your lender. This is then signed by the borrower and sent to the sellers, which is the last piece to satisfy the financing contingency.

15) Wait to close. You’ll receive your closing documents 1-3 days prior to close which you’ll want to carefully review with your mortgage broker & Realtor to make sure everything adds up.

16) Day of Closing you’ll want to do a “final walk through” of the property. This is to make sure everything looks normal it before taking possession. (No trees have fallen on the property, no fire, etc. )

16) Day of closing, you’ll want to bring a certified cashiers check to closing for closing costs, your personal checkbook (in case any added expenses) and your ID/Drivers License.

17) Celebrate & Enjoy your new home! Oh, and don’t forget to refer your fabulous Real Estate Agent -Jamie Miller- to everyone you know

For more information on the home buying process or more details, contact Jamie Miller at 608-335-3410.