Buyer's Guide
A Step-by-Step First Time Buyer's Guide
Buying a home is one of the most exciting milestones of your life. To prepare yourself for this moment, you need to know what to expect during the process. This step-by-step first time buyer’s guide created by your agent will help reduce the stress of buying a home and help you enjoy the journey as much as possible.
Step 1: RESEARCH
Do you already know where you want to buy? Do you want to live in a subdivision, on a farm, in the woods, be in a specific school district or close to specific attractions? Which features do you like and dislike? What’s available on the market currently? Now is the time to start researching. In addition to looking for homes that interest you, also take note of any changes in asking prices. This could give you valuable insight into housing trends in specific neighborhoods and help you when the time comes to make an offer.
Step 2: DECIDE ON YOUR BUDGET
Notice I said to decide on your budget—not determine how much the mortgage company will give you. In many cases, a mortgage company will pre-approve you for more than you are comfortable spending, which is why you need to determine the monthly payment you feel comfortable with before talking to a lender. This likely includes doing a full household budget and taking into consideration what changes, other than a mortgage payment, will occur once you move into your new home. If you’ve lived in an apartment or with your family, you may overlook new expenses like utilities, property taxes, and home maintenance that could easily blow your budget. Use the mortgage calculator in the Resources section to get an idea of payment on a certain mortgage amount. This is a great tool to use for estimations.
Step 3: GET PRE-APPROVED
Just because you think you can afford a certain payment every month doesn’t mean the mortgage company will agree. Just as they may approve you for too large of an amount, they may also approve you for a lesser amount or even deny you a mortgage altogether. Lack of time at a job, self-employment income, insufficient credit, past bankruptcies, or other financial issues can cause major problems when trying to secure a mortgage. Before you get your heart set on a home, talk to a mortgage professional to find out what amount you can qualify for. I am happy to refer some professional lenders who provide outstanding customer service. This will also be an advantage when you make an offer on a home, as sellers oftentimes will not entertain offers from those who aren’t already pre-approved for a loan.
Step 4: CHOOSE A REAL ESTATE AGENT
This is an important step in the process. Choose an agent who is readily available to you and whom you trust. You are making a large investment. You are providing yourself and your family a home, but you should also look at the return on the investment you are making. I will help identify properties you might be interested in, on and off the market, and give you pointers that will help you find your dream home for the right price.
Step 5: FIND THE RIGHT HOME
This should be the most enjoyable step of the entire process (other than moving in!). I will arrange showings of homes you’re interested in that are within your price range. We may find your home right away, and we may look at several homes. While it is unlikely that you will find a home that will "check" every box on your list, I will encourage you to look at homes and take notes about what you like and don’t like, making certain that you "check" the most important and the majority of the boxes. I will pay attention to details that perhaps you may not see. Outside the home, take time to explore the neighborhood and keep an eye on traffic at certain times of the day, the parking situation, and how close it is to necessities like schools and grocery stores.
Step 6: MAKE AN OFFER
Once you have selected the perfect home, we will craft a fair offer based on the value of comparable homes currently on the market and recently sold. Depending on what the home is listed at and whether the current environment is a buyer’s or seller’s market, your offer may be below, at, or even above the asking price. I will be able to help you make the best offer and further negotiate if you receive a counteroffer. At this point, the home will go into escrow.
Step 7: HAVE THE HOME INSPECTED
In most cases, your offer will be contingent upon having the home inspected to ensure there is no major structural damage or large repairs needed, what we refer to as material defects. I can suggest qualified inspectors and help you arrange this. You can schedule the inspection upon confirmation of an accepted offer. If there are no major issues, the process goes to step eight. If there are material defects found, you can renegotiate your offer based on what needs to be repaired and the expense that will be incurred. Sellers may correct the defect or they may offer you a credit to compensate you for the repair. If the seller corrects the defect, the process continues. If they wish to give you a credit and you accept that, the process continues. If the seller is unwilling to correct the defect, you have the right to terminate your contract at that point.
Step 8: SELECT YOUR LOAN
Now is the time to go back to the mortgage lender who pre-approved or pre-qualified you and choose your mortgage. You will be presented with various options based on your unique financial situation, including fixed-rate, variable-rate, 15-year, 30-year, or special programs such as VA loans or FHA loans. Work with your mortgage lender to select the option you feel the most comfortable with.
Step 9: GET A HOME APPRAISAL
Your lender will have your new home appraised by a professional appraiser. This is done to determine an independent value of the property. The appraisal ensures that you and the lender are making a sound investment.
Step 10: CLOSING
After appraisal, you will complete the final paperwork with your lender. The title/escrow company will conduct a search on the property and provide title insurance to you on your new home. This is done for the protection of all parties involved. The escrow company will collect all monies and will also disburse all monies. Upon completion of the paperwork at the escrow company, you can feel confident that all outstanding bills connected to the home have been paid and that ownership has been transferred to you successfully.
Congratulations!
The deed has been filed with the County Clerk, you have been given the keys, and you are the owner of a home! If you have not done so prior, when you leave the escrow company you will need to phone or visit your utility providers and inform them that you now own the home. This step has to be done on the day of closing! We want you to have electricity and water without any interruption! You will also need to go to the County Assessor's Office within the first month and inform them of your purchase and provide information to them for any exemptions you are eligible for on your property taxes. Enjoy your new home!!!
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Email:
angela.realty618@gmail.com
Address:
511 E DEYOUNG ST.
MARION, IL 62959
Phone Number:
(618) 924-2285
