Buyers
You are about to embark on the exciting journey of finding your ideal home. Whether it is your first home or your tenth home, a retirement home or an investment property. We will make your home-buying experience fun and exciting. We can help you find the ideal home with the least amount of hassle and we are devoted to using our expertise and the full resources of our office to achieve these results!
Purchasing a home is a very important decision and a big undertaking in your life. In fact, most people only choose a few homes in their lifetime. We will make sure that you are well equipped with up-to-date information for your big decision. We are prepared to guide you through every phase of the home-buying process. We want to educate and advocate for our clients.
WHY BUY?
- Quality of Life
- Tax Deductibility of Mortgage Interest
- Tax Deductibility of Property Taxes
- Appreciation Potential
- Deferred Gain and Capital Gain Treatment
- Once in a Lifetime Exclusion
- Principal Accumulation
- Pride in Your Home
- No Landlord
- Leverage (where else can you buy this size or type of an investment with only 5-10% down?)
- The Real Cost of Renting (At $1750 per month, with a 6% rental increase per year, you will pay $276,538 over a 10 year period.)
HOW MUCH CAN I AFFORD?
There are three key factors to consider:
1. The down payment -
Most loans today require a down payment of between 3.5% and 5.0% depending on the type and terms of the loan. If you are able to come up with a 20-25% down payment, you may be eligible to take advantage of special fast-track programs and possibly eliminate mortgage insurance.
2. Your ability to qualify for a mortgage -
Most lenders require that your monthly payment range between 25-28% of your gross monthly income. Your mortgage payment to the lender includes the following items:
- The principal on the loan (P)
- The interest on the loan (I)
- Property taxes (T)
- The homeowners insurance (I)
3. The closing costs associated with your transaction -
You will be required to pay fees for loan processing and other closing costs. These fees must be paid in full at the final settlement, unless you are able to include them in your financing. Typically, total closing costs will range between 2-5% of your mortgage loan.
WHICH NEIGHBORHOOD?
There are many factors to consider when selecting a neighborhood that is right for you. Below are just a few of the many factors. You may think of others that are important to you as well. Please write them on your Home Search Criteria form, so they do not get forgotten. Neighborhoods have characteristic personalities designed to best suit single people, growing families, two-career couples, or retirees. Investigate to determine if the neighborhood matches your lifestyle and personality.
Scout out the Neighborhood!
It is important that you scout the neighborhood in person.
- Talk to people who live there.
- Drive through the entire area at different times of the day, during the week and on weekends.
- Look carefully at how well other homes in the area are being maintained; are they painted, are the yards well cared for; are parked cars in good condition, etc.
MAKING AN OFFER
Once you have found the home you wish to purchase, you will need to determine what offer you are willing to make for the home. It is important to remember that the more competition there is for the home, the higher the offer should be – sometimes even exceeding the asking price. Remember, Be Realistic. Make offers you want the other party to sign!
We will supply you with comparables of other homes that have sold and give you expert advice so you make the right decision.
To communicate your interest in purchasing a home, we'll present the listing agent with a written offer. When the seller accepts an offer it becomes a legal contract. When you write an offer you should be prepared to pay an earnest money deposit. This is to guarantee that your intention is to purchase the property.
NEW CONSTRUCTION
Why use an Agent to purchase a new home?
The advantages of having an agent help you purchase a new home are the same as those for purchasing a resale home.
- Knowledge of the market
- Help in finding the perfect home quickly
- Expertise in contract writing/negotiation
- Closing assistance
The builder has a professional representative watching out for his/her needs, and you need the same expert representation. Buying a new home is a little more difficult and time-consuming than buying a resale. I can professionally guide you through this process. It is very important that your interests are professionally represented when you are entering into a contract for a semi-custom or build-to-suit home. These transactions are complex and the contract details must be exact in order to protect you and to ensure you get exactly the home that you want!
Inspecting the physical condition of your next home is a vital part of the home-buying process. A licensed home inspector will conduct a comprehensive evaluation of the entire property and report any problems with the condition of the home's structure or systems. The inspector will also investigate potential issues such as pest infestations or mold. Depending on the purchase agreement, we may enter additional rounds of negotiation to resolve any problems discovered during the inspection.
Utilities
Make arrangements for canceling home utilities such as the following. Advise them of your desired date for final reading and give them your new address for final billing. Request deposit return if appropriate, and arrange for immediate service at your new address.