HOME BUYER
Buying a home is one of the biggest decisions most of us make in our lifetime. Whether you’re a first time home buyer or you’ve purchased many homes. The decision to buy takes an investment of your time and research and needs to be made with care.
WHY ARE YOU BUYING A HOME?
You’ve worked hard all your life, now is the time to start enjoying it. The kids are grown with families of their own and everyone seems to be going in different directions. Maybe a Vacation Home is the perfect way to bring the whole family back together so you can all spend more time together. A place that’s Fun for the Kids and Grandkids to come and stay.
Maybe you’ve been paying high rents in the city and realize you don’t have to live near the office anymore – You want more space so you can work from home. Instead of a monthly rent payment to a Landlord, you want to pay your own mortgage and start building equity in your future instead of someone else’s
Retirement may be a few short years away and you’re thinking now is the time to start getting ready with a 2nd home that you can enjoy now and move to when you do retire. Or, maybe rent it out for a couple of years while you’re still working to cover the costs until you can move in.
Are you sick of those cold, wet and dreary winters? We don’t have to shovel Sunshine here in the Desert! A seasonal home away from home where you can spend a few months enjoying the sunshine and the Desert Lifestyle is a great way to enjoy the best of both!
Whether you’re looking for your forever dream home, you’re a first time home buyer or an investor looking for income potential, owning real estate has proven over time to be one of the best and least risky ways to build wealth.
Whatever your personal reasons are for buying a home; we’re here to help you make it happen.
GETTING READY TO BUY
Before you start shopping for your property, there are few things you need to do first so the loan and home buying process go as smooth and quickly as possible.
First and foremost, if you’re getting a loan – now is not a good time to change jobs, make any large purchases or open new credit lines. A Lender will need several things from you to get your loan approval started. Make it easy on yourself, create two HOME FILES – One will be hard copies, the other will be an electronic file on your computer. You will use these files often throughout the home buying process. Keep all of your important financial documents that you’ll need to secure financing. Your HOME FILES should contain:
- Tax Returns for past two years
- Financial Statements
- Bank Saving and Checking Account Statements
- Most recent statements for credit cards
- Auto Loan
- Recent Pay Stubs / 1099
- Copy of Leases if you own investment properties
- 401K Statement, Brokerage Statements, Life Insurance, Stock & Bond Portfolio Statements
For each of these items, scan them into an electronic pdf file and save it on your computer. These electronic files can easily be emailed to the Lender upon request. Name each pdf file exactly what it is with dates so the Lender can see at a glance what the file contains.
CREDIT SCORE
Your Credit Score has a big impact on your ability to get a loan and the interest rate you will pay, which also impacts how much you can pay for a house. Know what your Credit Score is ahead of time, if there is an error on your report get it corrected now. We’re happy to recommend lenders who are experienced and knowledgeable in residential, construction, commercial and investment loans to help you with the home loan process.
CHOOSE YOUR REAL ESTATE AGENT
Buying a home requires understanding complex issues, making many important financial decisions and a lot of paperwork. You need an expert on your team to help you navigate through what can feel like a maze. We have nearly 20 years of experience closing real estate transactions for our clients, we can help streamline the process and provide you with a Custom List of Homes that meet your specific needs and wants.
Here are a few things to consider when you’re choosing your real estate professional:
- Look for a Full Time Agent that works exclusively in the Desert Market
- Are they familiar with the different areas and do they have experience with your type of transaction
- Does the Agent return your calls promptly
- Ask for references and a list of homes they’ve sold
- Do they have a network of resources readily available for you
- Select an agent you feel comfortable with and listens to you
LET’S GO HOME SHOPPING
Make your list of Needs and Wants and which are “Non-Negotiables”. Be completely open with your agent, they need all of this information to help find the right home for you. We provide our Clients with a Custom Client Portal with Homes that meet your criteria. You’ll be alerted when a new listing hits the market that matches your criteria and you’ll be able to preview those homes online.
NARROW THE SEARCH
Select your top choices, and ask your real estate agent to schedule a private showing. Your agent will talk to you about the community, history of market value in the community and talk about long term resale value for the properties you’re considering.
MAKING AN OFFER
Once you’ve decided on the home you want to buy; your real estate agent will help you make an offer the seller can accept. A good agent will investigate the history of the property, the cost of maintaining the home, and help coordinate making the offer with the Lender.
THE SELLER ACCEPTED YOUR OFFER, NOW WHAT?
A signed Purchase Agreement is a legal agreement between Home Buyer and Home Seller. Once you have acceptance on your offer or counter offer, it’s time to open escrow and get to work on your loan and start your due diligence. Your agent will help navigate the escrow process
Here is a brief outline of the steps in the Escrow Process
- Earnest Deposit Monies – wire your deposit to escrow
- Send Purchase agreement to the Lender so they can get started on your Loan
- Appraisal – Your Lender will order an Appraisal to affirm value
- Seller Disclosures – disclosures regarding what the sellers know about the condition of the property
- Escrow Package – Review and Sign Escrow Doc’s
- HOA Package –(If applicable) CC & R’s, Rules & Reg’s, Budget, Minutes
- Home Inspection – A home inspection will reveal any deficiencies in the home
- Termite Inspection –
- Repair Request to Seller – negotiate with seller to make any repairs needed on the home inspection
- Contingency Removal – You’ve come to an agreement with the seller on repairs; time to remove your Inspection Contingency
- Appraisal and Loan Approval – The Appraisal came in at purchase price and your loan has been approved; time to remove the final contingency – Appraisal and Loan Contingency
- Homeowners Insurance – Secure your new Policy for Homeowners Insurance
- Sign Loan Docs
- Final Walk Through – your chance to confirm repairs are complete
- Wire Closing Funds to Escrow
- Lender Funds the Loan
- Close Escrow and Transfer Title – Time to Celebrate!!!