What to Expect from the Home Buying Process, Part 2
Last time we discussed what to expect when you being to look for a home. Starting the process includes doing your research on the areas you are interested in, getting your finances in order, along with getting pre-approved for a mortgage, if necessary. Some lending institutions will fully underwrite your loan, this is step up from a pre-approval and will help you compete against cash buyers and set you apart from other buyers “all else equal” if they are not fully underwritten. And finally, starting your home search!
Next, we’ll take a look at what happens after finding your forever home:
Presenting an offer to Seller. When you find a home that meets your needs, we’ll help you make an offer. The offer includes a commitment for a deposit of good faith, so be sure to have the cash available. Within the offer, you can negotiate the terms of the sale, such as repairs to be made or appliances you’d like to be included in the purchase. The seller can agree to the terms or make a counter offer. The situation can be decidedly different depending on if there are competing offers or not. We, as your agents, will be negotiating on your behalf with the seller’s agent. Once the offer is accepted and signed by both parties, the process has begun!
Know the fees involved in the sale. There may be other fees and taxes associated with the sale, which vary state by state. Some fees will require up-front payment while others can be rolled into the home loan. A few of the most common fees when buying a home include: private mortgage insurance, homeowner’s insurance, appraisal fees, inspection fees, title insurance and escrow fees. Contact Team O’Brien and we can outline the other costs associated with your purchase.
Obtain necessary property inspections. A home inspector will look for structural damage, potential repairs and other issues. Many buyers make the offer contingent upon the results of the inspection. If the inspector finds a major issue, you may have the opportunity to renegotiate or withdraw your offer. The most common inspections are a general home, pest inspection, sewer lateral and roof.
Be sure to review the inspection report and decide which repairs should be addressed by the seller before closing. Before the sale is finalized, you’ll have the opportunity to do a “walk-through” of the home and make sure the repairs requested were completed.
Get an appraiser and learn the value of the home. Your lender will have a third-party appraiser provide an estimate of the home’s value. This is to ensure that you pay a fair price for the home.
Shopping for home insurance. Home insurance protects your biggest investment. Meet with your insurance broker to go over your options and ensure you have the coverage you need.
Closing procedures. Prior to closing, your lender/escrow company will work with a title company to research the deed and ensure it is free of any liens (another person’s legal claim of the property as debt payment) among other things.
At closing, you’ll read over and sign all the loan paperwork. When your funds are wired and the funds are wired from your loan company to escrow, escrow will then set recording with the county and you’ll be able to move in!
If you have questions about terms of sale or other concerns, you can reach us at any time via phone call or email.