You’ve obtained an approval from your mortgage broker and determined the purchase price of the home you can afford, so what is your next step? Working with a realtor who will help you find the home of your dreams (or the home you’ll live in until the next duty station.)
Select a realtor. Experience is most important-you wouldn’t trust the care of your children to an inexperienced nanny, so why put the biggest purchase you will ever make in the hands of someone who hasn’t gone through it before?
Just like when selecting a mortgage broker, ask your friends, family and colleagues-anyone who owns their own home-which realtors helped them, what their buying experience was like and if they would recommend him or her to you. Are they available after hours, if that’s when you are able to talk? Do they return phone calls promptly? Are they knowledgable about the area you’re interested in? These attributes will all be extremely important as you move further along in the home buying process.
Do your homework. Once you’ve been pre-approved, go online to view homes that are selling for that price. Be sure to look at square footage typical for that price range, as well as amenities, lot size and number of bedrooms. Sites like www.Realtor.com are an excellent way to compare homes in your price range and will give you an understanding of what is available in the area in which you want to buy.
Preview homes. This is the best part of buying a home-finding the one that is perfect for you and your family. Make a list of all the amenities that you would like to be included in your home, but be aware that it isn’t realistic to obtain everything on your list.
Make an offer. Once you find a home your realtor will submit an offer to the seller’s listing agent. That offer will either be accepted, rejected or countered. More often that not, the sellers will counter your offer with a price higher than yours, but less than the purchase price. This is when a realtor will act as a liasion between you and the sellers, going back and forth, negotiating. For example, a seller may counter your offer with a higher price but offer to pay $5,000 in closing costs.
Sign contract. Once your offer is accepted, both the listing agent and your realtor will draw a purchase contract that meets both party’s approval. In addition, you will be required to make a deposit with the contract to secure the deal in good faith. This money is referred to as “earnest money” and will be held in escrow until the loan closes. Earnest money is deducted from your total closing costs.
Secure financing. At this point, your mortgage broker will order an appraisal to ensure the property is worth the price you’ve agreed to pay and send your loan to the bank for final approval. While the mortgage broker is securing financing, your realtor will order a home inspection, keep in touch with the mortgage broker and set a time and date for closing.
Closing. Once your mortgage broker has obtained final approval from the bank, loan documents will be sent to the closing attorney for you to sign and you will officially be a homeowner!
Best of luck on your search for your home! There is nothing more gratifying that owning your own property.
