What is the first step of the home buying process?

If you plan to finance, getting pre-approved for a mortgage is the first step of the home buying process. Getting a pre-approval is generally a quick process and demonstrates that you are a serious buyer to both your Realtor and the person selling their home. A pre-approval may be required before you can view a home in person or, at the minimum, put in an offer.

First, you need to know how much you will be able to finance.   Knowing how much home you can afford narrows down online home searching to suitable properties, no time is wasted considering homes that are not within your budget. Pre-approvals also help prevent disappointment caused by falling in love with homes that aren't in your range currently.

 

Your lender will help show you a clear picture of what is financially required to buy a home. You’ll know how much money is required for the down payment and closing costs or if you qualify for any free grant down payment options. There are many financing options available and they are educated to help find the best plan for you and your family.  If you have credit concerns they can also help you put a plan together to increase your credit score. Watters Edge Realty (Brokered by RG) has several preferred Lenders, many of which specialize in the unique property you may be interested.  They will walk you through the process so it is clear and easy to understand.  

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Already own a home, can I sell and buy a home at the same time?
There are many options that can help you win a property but it's important to know all the information and all the details prior to starting the process.  We work closely with your lender to make sure we have all the necessary information to make your dreams come true. Having a good solid team that you can trust working for you is essential to getting the best deal for the property of your dreams.

 

Should I buy a home instead of renting?
Oftentimes, it is more cost-efficient to buy a home rather than rent one. When you buy, you are investing in your own future. When you rent, you are helping your landlord to invest in his or her future. There also are financial perks like tax deductions and home equity that come along with owning a home. There are also low down payment and grant down payment options available. In this market many people are concerned about the high interest rates.  When you are renting, you are paying 100% interest so any interest rate you will receive is better than renting, if owning is your goal.

 

I have my pre-approval, what’s next?
Congratulations! This is an exciting time and we would be so honored for the opportunity to help you find your new home! We will set up a time to discuss your needs and learn more about what is important to you in your future home. We will then narrow down your criteria in your own personalized search. Watters Edge Realty (Brokered by RG) also has access to off market opportunities that are not online. We pride ourselves on our quick response time and accessibility. The great properties sell fast and we understand how important it is to be accessible and available for you. We will work closely with you to set up showings around your schedule.  We also offer virtual tours so you can get into the house as quickly as possible from the convenience of your own home. 

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I found the perfect home, now what?
Once you have found the home that you want to make an offer on, timing is important. Our team uses the best technology to get your purchase agreement together quickly, utilizing digital signatures that you can sign from your phone or computer. We are accessible even after traditional business hours. We will take the time to run a detailed analysis to determine what the true market value is for the home you are interested in to ensure you are offering a fair price. We will use this data to put together an action plan for your offer price and terms. In this market homes can go fast and it is not uncommon to see multiple offers. We know how to help your offer stand out. There is a lot that goes into the offer process and having an experienced Realtor on your side can help you get your dream home.

 

What is an earnest deposit?
If you’re ready to make an offer on a particular home and also want to prove to the home seller that you’re serious about your offer, there’s a way to prove your commitment. This is where earnest money comes into the picture. When a buyer and seller enter into a contract, the seller takes the home off the market while the transaction moves through the entire process to closing.

Earnest deposits are typically 1% of the purchase price however if your finances are tight you can offer a lower amount. The higher the deposit, the more serious you will look to the seller. As a buyer, your deposit would be due within 48 hours of going under contract. This deposit is typically paid to the title company or listing Broker and is credited back to you at closing. If the transaction falls through due to a failed home inspection or any other contingencies listed in the contract the buyer typically gets their earnest money back.

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Should I get a home inspection?
Once your offer is accepted and you choose to do a recommended inspection, you have an agreed upon period of time to do all of your due diligence.  This time often ranges from 3-10 days. Home inspections are highly recommended and the offer can be contingent upon the results of the home inspection or be for informational purposes only.  The typical cost of an inspection can range between $400-$700 depending on the square footage and features of the home.

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How quickly can I get the keys?
Typical the closing process periods are 30 to 45 days, This gives you enough time to do the investigation on the property and get your loan and appraisal completed.  The escrow period is the period of time from acceptance of the purchase agreement until the transaction is closed.

 

What is an appraisal?
The findings from an appraisal determine the amount a mortgage lender will let you borrow for the property. Appraisals must be conducted by a licensed, third-party appraiser who has no connection to the buyer, seller, Realtor or lender. That way, all parties can be sure the determined market value is fair, unbiased and free of any influence from any party that could benefit.
The lender usually orders the appraisal, but the borrower is the one who pays for it.

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How do I choose which Realtor to use?
Finding a real estate professional is a crucial part of the home buyer process. Buying a home is a huge step, so you want to find someone who is accessible and available, someone who will understand your needs and look out for your best interest during this transaction.  You also want to enjoy the experience, so finding a Realtor that fits your personality and communicates well in the form of communication that you prefer is important.

The internet has made it possible to do a lot of the legwork yourself, but there’s no substitute for an experienced professional. An expert negotiator who knows the market can save you time, money and heartache by helping you make the right offer, playing hardball when necessary and staying on top of the process.

 

Should I use my friend or relative as my Real Estate Agent?

Any time you’re facing a large financial decision, like buying or selling your home, it’s wise to work with an experienced professional to guide you through the process. Once word gets out that you’re looking for a real estate agent, you might be bombarded by friends and family members asking you to hire them for the job. A real estate transaction is likely going to be the biggest investment you make in your lifetime, and there is no room for mistakes. You will be entering into an agreement with your Realtor and sharing very confidential information with that person.  You need to choose someone that you can trust and not be uncomfortable if they know all your financial information.  You need to know that they will put all your needs first and feel confident that they know the market in which you are searching and have the skills and ability to meet your real estate needs. 

 

How do I search for a home?
Keep in mind many popular home searching sites make millions of dollars off of leads. This means these sites are more likely to make homes appear for sale when they are actually pending or sold. This can be frustrating, disappointing and a waste of your time. You’ll want to use a site that gives you direct access to the MLS with real time availability, the similar access available to Realtors. We can set up a search for you so you receive timely and accurate information.  Fill out the information request form below and we will get you set up right away.

 

Do I need a Realtor when buying a brand new home?
Yes! Never visit the model homes without your Realtor. The Sales Consultants in the office represent and work for the builder/seller. If you go into a model home alone you are risking the possibility of being unrepresented, meaning you will have no one on your side, reviewing the legal documents and looking out for your best interests. Builders are not able to give you a better deal if you do not have a Realtor.  Having an experienced Realtor on your side can actually help you save money, receive more upgrades and potential reduce or eliminate heartache.

 

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