Buyers

Mortgage pre-approval should be your first step when you start the home buying process. If you are pre-approved, it means that a lender has stated that you qualify for a mortgage loan based on the information you have provided.

WHY SHOULD YOU GET PRE-APPROVED?

• There is zero cost to you to get pre-approved
• You'll know what you can afford
• Realtors will know you are serious about a home purchase
• You'll be more appealing to Sellers and a Seller may pass on an offer without one.

LOAN APPLICATION PREPARATION

Documents you may need for your application

• Addresses of residences (2 Years)
• Social Security, Number Driver’s License or other valid ID
• Employer names/addresses (2 Years)
• Two recent pay stubs
• Federal tax returns (2 Years) W-2s (2 Years)
• Bank statements Loans/Credit Cards: Names, addresses, Account numbers, and payment amounts
• Addresses and values of other real estate owned
• Funds to pay for credit report and appraisal
• Value of personal property
• Your best estimate of the value of all your personal property (autos, boats, furniture, jewelry, television, electronics, etc.)
• For a VA loan: Certificate of Eligibility or DD 214s Divorce decree, if applicable Letters of Explanation regarding credit inquiries or special circumstances

DO I NEED AN AGENT???

Here's some information you need to know.

Most of the homes you'll be viewing will be listed by a Realtor. The sellers will have hired someone to represent their best interests and you should have the same. When it comes to negotiating, buyer's agents know how to negotiate on your behalf. A buyer’s agent’s priority is making sure you as the buyer get the best deal for the best home.

BENEFITS OF USING A REAL ESTATE AGENT

Because you may be new to the home-buying process, the following list will give you some idea as to the responsibilities that your real estate professional should take on your behalf.

• Educate you through the entire home-buying process
• Help you understand all of the paperwork
• Handle any problems which might arise during the entire transaction
• Properly prepare any forms, contracts and disclosures that are required and see that those items are legally correct
• Provide comparable sales data to help assure that you are paying the proper price for the home
• Help you find the right home in the right neighborhood
• Screen homes before your showing to make sure the property meets your needs
• Guide you with regard to repairs that should be made
• Negotiate all facets of the transaction in your best interest
• Guide you in your selection of competent escrow/closing and title people
• Oversee the entire closing process
• See that the completion of the transaction is smooth right through to things such as obtaining the keys and possession of the property
• See that all required disclosures are made
• Help you to understand the use and limitations of escrow deposits
• Help you spot sellers who are attempting to take advantage of you
• Advise you as to when you should seek the advice of an attorney
• Make sure that the appraisal process is handled properly
• Help you to understand the complete loan, escrow/closing and title process
• Help you to negotiate the best price available for all costs and fees related to the transaction
• Advise you as to any inspections such as septic, well or solar, which might be applicable to the specific property in which you are interested.
• Help you recover any overages which are paid during the closing process
• Properly handle the walk-through process with you prior to closing See that any repairs or requirements are met prior to closing
• Advise you as to any contractual changes which might be necessary prior to closing
• Negotiate and work effectively on your behalf with the seller, other agents, escrow/closing

NAR SETTLEMENT BRINGS CHANGE TO THE WAY YOU VIEW HOMES.....

As of August 17, 2024, Real estate agents who use and list properties for sale on a Multiple Listing Service (MLS) a local marketplace used by real estate professionals (both buyer brokers and listing brokers) to share information about inventory in a particular area—will be required to enter into written agreements with buyers before touring a home. These documents include Buyer Broker Agreement to Show Property and Buyer Broker Exclusive Employment Agreement.

IS IT A BUYERS MARKET? IS IT A SELLERS MARKET?

Almost everyone has heard the terms “Buyers’ Market” and “Sellers’ Market.” Basically, these terms mean exactly what they say. In a “Buyers’ Market,” it is a good time to buy and in a “Sellers’ Market,” it is a good time to sell. But what are the factors that help make either of these markets exist? Here is some information that helps define and compare some of the important aspects of Buyer's and Seller's Markets.

Some of the factors which help to predict Buyers’ and Sellers’ Markets include; weather, special interest areas by specific groups of people such as retirees, expanding employment, spiritual affiliations, special recreation availability, artistic activities or simply a heightened interest in the area.

One very important statistic that buyers need to be aware of is that nationwide, more homes are sold during the five months, May through September, than are sold in the other seven months of the year. The reasons for this statistic are:

1. Weather is generally better in the higher selling months because it is easier for potential Buyers to be out looking for homes and ultimately moving.
2. Families prefer to move when the children are out of school.
3. Many Sellers have been led to believe that homes sell faster and at a higher price in the summer months.

NEEDS VS WANTS VS MUST HAVES

• Prevent emotional buying
• Eliminate homes that are a bad fit
• Find the best house that fits your needs
• Make appropriate compromises
• Act swiftly when the right house comes along

Although very similar, each of these checklist items are distinctively different. For example, everyone needs a roof over their head, an air conditioner and heater unit and running water. But many homeowners won’t need or even want, lavish amenities such as a pool, white picket fence, four bedrooms or renovated bathrooms. Let’s do a quick review to understand how each is different and how it affects your home buying journey.

Needs & must-haves in a home Location: Consider the commute times of the job location. This can save people hours of driving back and forth.

Space: Always consider the space needed in a new home. There are also many types of homes to choose from, such as single-family homes, townhouses, condos and duplexes.

Wants in a home Amenities: Some homeowners tend to confuse the amenities that they need versus the ones they want. For example, the type of HVAC system, garage and home office space could be in the needs category. Wants may include a hot tube, landscaping and pool.

Aesthetics: As a home buyer, never pass up on a home solely on aesthetics. The looks of a home can be easily changed and updated.

Budget: Always have a budget ready before shopping for houses. A home must fall within the price range of a home buyer; otherwise, it’s a waste of time to even look at it.

THE HOME COMPARISON CHART

Remembering each home would appear easy, but it can quickly become confusing. Which home was near the school? Which one had the great pool? Did it have a family room? How many bathrooms? In the “Something Memorable” category, note something you think is unusual and memorable about each home, such as a stained glass window, fruit trees, a child’s playhouse. This will make it easier for you to recall the property later and refer to a specific address. And last but not least, maybe the most important question, does this house feel like home? This home comparison chart is designed to help you remember the homes you visit and what you liked best and least about each one. Rate features or make notes that will help you determine what pleased or displeased you.

LET'S MAKE THE DEAL!

So you found "the one". Here's what you need to know about making an offer on your dream home.

The time has come to make an offer. You'll need to decide the terms and conditions of what you want to offer the Seller (price, closing date, conditions, etc.) Don't worry, we'll walk you through everything.

If yours is the only offer, we might want to include some conditions like financing and home inspection, if we are in competition it's wise to remove any conditions (especially in a seller's market) to make your offer as competitive as possible.

Making an offer is an exciting and stressful event but we'll help you choose the best strategy to get you the home you want.

Here are the elements of the offer you will need to know and understand:

PRICE: The price you are willing to pay for the home. We will help you understand the market and what to offer.

DEPOSIT: Shows good faith applied against the purchase of the house when the sale closes (typically 3%).

TERMS: Terms include the total price offered and the financing details.

CONDITIONS: Conditions are items that must be completed or fulfilled before the closing.

INCLUSIONS/EXCLUSIONS: Your offer may be contingent on certain items being either included or excluded in the sale.

CLOSING: The day the title of the property is legally transferred and the transaction of funds finalized.

Congratulations! Your offer has been accepted, what an exciting milestone!

Next up, we’ll move into the escrow process, complete inspections, finalize your loan and work closely with the title company to get everything in order. I’ll be with you every step of the way to ensure a smooth path to closing and handing you the keys to your new home! Here's what it looks like . . .

WHAT IS ESCROW?

Escrow is a term that describes the neutral third- party handling of funds, documents, and tasks specific to the closing (or settlement, as it is also known), as outlined on the real estate purchase agreement or sales contract. The purpose of escrow is to facilitate the transaction by managing the disbursement of funds. The first step, escrow will follow up with a request of deposit on the agreed dollar amount for earnest money per the purchase contract.

IS HOME INSPECTION NECESSARY?

Buyers are often encouraged to have a comprehensive review of the structure and components of property by professionals. Competent inspectors are usually members of the American Society of Home Inspectors (ASHI). This inspection encompasses roof, plumbing, electrical, heating and any other accessible areas of the structure. The Home Inspection Company will provide a written report, with recommendations, for repair or further inspection by a specialist. Please note that home inspection charges vary, depending on the size of the home. Other Common Inspections:

WHAT TO AVOID DURING THE ESCROW PROCESS

CHANGING YOUR MARITAL STATUS - How you hold title is affected by your marital status. Be sure to make both your lender and the title company aware of any changes in your marital status so that documents can be prepared correctly.

CHANGING JOBS - A job change may result in your loan being denied, particularly if you are taking a lower-paying position or moving into a different field. Don’t think you’re safe because you’ve received approval earlier in the process, as the lender may call your employer to re-verify your employment just prior to funding the loan.

PAYING OFF EXISTING ACCOUNTS UNLESS YOUR LENDER REQUESTS IT

If your Loan Officer advises you to pay off certain bills in order to qualify for the loan, follow that advice. Otherwise, leave your accounts as they are until your escrow closes.

MAKING ANY LARGE PURCHASES

A major purchase that requires a withdrawal from your verified funds or increases your debt can result in your not qualifying for the loan. A lender may check your credit or re-verify funds at the last minute, so avoid purchases that could impact your loan approval.

SWITCHING BANKS OR MOVING YOUR MONEY TO ANOTHER INSTITUTION

After the lender has verified your funds at one or more institutions, the money should remain there until needed for the purchase.

Now it is time to sign documents to complete the purchase of your new home. Here. is a little information you should know ahead of time and what you will need.

VALID PHOTO IDENTIFICATION

To help defend against forgery and fraud, state notary laws include requirements that parties signing documents in a real estate transaction to provide acceptable forms of identification. Although specific requirements may vary from state to state, here is a general overview of the type(s) of identification typically used to substantiate and affirm identity.

ACCEPTABLE IDENTIFICATION

Document must be current and contain the signer’s photograph, physical description, signature, and bear a serial or other identifying number.

• Valid Driver’s License or Non-Driver
• ID Issued by any State
• US Passport or foreign Passport stamped by the
• U.S. Citizenship and immigration services (USCIS)
• Valid Military ID
• Veterans Health ID Card
• Valid Canadian or Mexican Driver’s License issued by the official Agency

UNACCEPTABLE IDENTIFICATION

• Temporary Driver’s License
• Driver’s License without a
• Photograph
• Social Security Card
• Employee ID Badge
• Permanent Resident ID Card

Closing document signatures must match the name that appears on the identification presented. An abbreviated form (John D. Smith instead of John David Smith, for example) may be acceptable. However, deviation is only allowed if the individual is signing with less than and not more than what is on the identification document. If your name has changed or will change, prior to the closing, documentation must be provided to support the change.

CASHIER’S CHECK, TREASURER’S CHECK, OR WIRE TRANSFER

In the event you are required to bring funds to closing, personal checks or cash cannot be accepted. If you prefer to wire your funds, contact your closing/ settlement agent for bank routing instructions. If you will be bringing a proceeds check from another settlement, contact your closing/settlement agent to verify the acceptance of those funds.

HAZARD INSURANCE POLICY AND RECEIPT

A hazard policy, also known as homeowner’s insurance, with the lender designated as the insured holder of the mortgage, is required on most loans. Evidence of hazard insurance, including a paid receipt, must be provided prior to closing.

IF POSSIBLE, ALL PARTIES WHO HOLD TITLE TO THE PROPERTY SHOULD ATTEND THE CLOSING

State-specific laws may require the spouse of the parties in title, even though their name does not appear on the deed, to sign certain documents when obtaining a mortgage. If anyone is unable to attend closing, contact your closing/settlement agent to arrange a power of attorney or closing by mail.

Once you have signed all of the documents with the title company, it is forwarded to the County Assessor's office for recording.

Congratulations on the close of your new home!

This is such an exciting moment ~ welcome to this new chapter! Up next: you’ll receive your final closing documents, official recording confirmation, and the keys to your new place. I’ll also share a few helpful tips for move-in, setting up utilities and making your transition smooth and stress-free. Let the celebration begin!