Ok, so you've found a REALTOR® to work with. You've been to the bank and find out everything is good there and you're ready to find your home. Now what? What can you expect when looking for a home? You can expect to look at several houses...the average being 12. But of course that all depends on the market you're looking in along with how much house you can afford. Your REALTOR® will be able to help you narrow down properties to look at depending on your needs. If you're in a bigger market you may have several dozen to look at. Smaller market? As few as one home may be available. Don't worry if that's the case...generally it's only a matter of time before something else comes up for sale.
Now the fun begins....house hunting!! You make the appointment to meet with your REALTOR®, view the list of homes to see and head out the door. Here's an important tip...bring a pen and a notebook. You're going to want to take notes on the houses you see. But, not every house you see. Only the ones you really are considering buying. And on that same note, use a process of elimination. With each house you see, determine if you can really picture yourself living there. If the answer is no, cross it off your list and don't think about that house again. Try and keep it to TWO houses on your list. With each new house you look at, if you can't say you like it more than the two already on your list, off the list it goes. This will help keep you better organized and not wondering throughout the day which house had what to offer and which one you liked the most.
Now you look at house after house and finally decide which one is for you. It's time to write an offer. What you offer and other details of your purchase agreement will be best advised by your REALTOR® as they know the local market. Once the offer is submitted to the listing agent, several things can happen. The seller can accept your offer "as is", but that's rare. In most circumstances there will be negotiations. This can happen rather quickly...as in a matter of minutes if there isn't a lot to negotiate. Or, it can happen over a matter of hours...even days. When it comes to trying to figure out a price that both you the buyer, and they the seller, are happy with, think about what the difference in price means over the long run. If you are (for example), three thousand dollars apart in price, think about two things...how much do you want this house? And what will three thousand dollars broken down over the course of my mortgage actually cost me a month?...basically a few dollars more per month.
So, your offer is accepted..again, now what? Now is when, if you're having one, you hire a home inspector. Many states require home inspectors to be licensed so choosing one will likely be a matter of personal choice and cost. You can always ask your REALTOR® whom they've worked with in the past that they've had a good experience with. Remember to be prepared for pay for the inspection the day it happens if that is what is required in your area. If you can be there when the inspection is happening it's a good idea to do so. Once the inspection is done it will be a few days until you get the report. When you get the report back, go over it with your REALTOR®. They have the experience to help you understand what the inspector has "flagged" and let you know if it's something you need to worry about. Bigger issues that come up on the home inspection can result in renegotiating your offer to purchase so long as the offer was contingent on the home inspection. Just remember not to get hung up on the details of the report.
Once the home inspection is over and everything is settled, it's time to wait. The process is now out of your (and your REALTOR'S®) hands, as other people now take over. The bank will send an appraiser to appraise the value of the property. There will be attorney reviews, title searches, underwriting...all kinds of things. The important part now, is to be patient. It's also important to note at this time, DON'T BUY ANYTHING! Now I'm not talking about a latte or something little. I'm talking about a new car, boat or pretty new furniture that will look great in your new living room. The reason? Any new debt at this point can change your borrowing power and you may need to be re-qualified for your loan.
Once, when what feels like an eternity has past, and everyone has given the O.K., it's time to close. Be sure and talk to your lender to make sure that all the numbers are what they should be on the settlement statement (your lender or REALTOR® can explain to you what that is) and that you have your money in order. Depending in what type of loan you have and terms of the purchase agreement, you will likely need to have "certified" funds ready to bring to the closing table. Your lender will let you know exactly how much that will be, but you should already have a pretty good idea of the amount before even starting your home search. Once you get to the closing table you may be overwhelmed by the amount of paperwork for you to sign. But before you know it, it will all be over and you will be a home owner!
Enjoy....and now you can go buy your furniture.
