American
Executive Realty | Buyer Information
Buying a home can be one of your most significant investments in
life. Not only are you choosing your dwelling place, and the place
in which you will bring up your family, you are most likely investing
a large portion of your assets into this venture. The more prepared
you are at the outset, the less overwhelming and chaotic the buying
process will be. The goal of this page is to provide you with detailed
information to assist you in making an intelligent and informed
decision. Remember, if you have any questions about the process,
we're only a phone call or email away!
10 EASY STEPS TO
OWNING A HOME
Get prequalified for your loan
If you can only afford car payments of $200 a month why bother
looking at a Rolls Royce ? The same goes for buying a home. There
are many factors in deciding exactly how much you can afford in
a home. By getting prequalified for your loan you may end up being
able to get more of a house than you expected. or it might save
you the heartbreak of not being able to get the house you saw and
loved. but now found out you can not get financed for.
Get pre-approved for your loan
The next step is to go and apply for a loan. You will then know
how much home you can afford and already have the financing securely
in place. Having a pre-approved loan is an excellent negotiating
tool. Seller’s would rather deal with buyer’s who they
know already have financing. You can negotiate a better deal because
they know when you say I’ll take it” that you can get
the deal done quickly.
Finding a home
There are usually two different ways to start the shopping process.
Some people prefer to have a real estate Broker give them a list
of homes in their target areas and price range. That way they can
schedule their own time and identify potential candidates. After
they pick out 3 or 4 homes that seem to meet their criteria, they
arrange a day of showings with their real estate Broker. This way
there is no pressure to buy immediately. Alternatively, some people
prefer to have a real estate Broker with them from the start, giving
them access to the Broker’s knowledge and experience concerning
school districts, crime rate, future development plans, etc.
Submitting an offer
Whether you are buying a home VA/FHA or conventional, it is important
that you find a “Buyer’s Broker” to get you the
best deal possible. The true beauty of a “Buyer’s Broker”
is that they work only for YOUR interest. At the close of escrow
their goal is to have you keep as much money in your pocket as possible.
Escrow
Once there is an accepted offer you will enter into escrow. An
escrow company is a neutral third party that is in charge of gathering
all the necessary documentation, signatures and funds needed to
complete the transaction. It is during the escrow period (usually
30-45 days) that we strongly recommend a thorough home inspection
conducted by a licensed home inspection contractor. Your Broker
will order title reports, appraisals, required pest control inspections
and any repair to the property to be completed. Finally, your loan
package will be prepared for underwriting.
Underwriting
Underwriting is a critical step in the loan process, however in
dealing with the government loan programs such as VA/FHA it is even
more important. Working with a top-notch lender insures that a well
prepared loan package will be submitted to underwriting on your
behalf. Although you have been pre-approved, the government loan
programs take a harder look at the property. What this means to
you. the buyer, is that the government will not let you buy a house
that does not meet certain standards. This government guarantee
is a built-in safeguard.
Signing your loan docs
After the loan package comes back from the underwriter, you will
go in and sign your loan documents. This is generally done at the
title company and takes approximately an hour.
Review by lender
The lender reviews the “docs” one final time to make
sure nothing is missing. As long as everything is in order we go
to the final stage of the home buying process!
Funding and Recording
Approximately 24 hours after signing your loan documents, the lender
will fund the loan. Once the escrow company receives confirmation
of funding, the deed to your NEW HOME will be recorded at the County
Recorder’s office.
Move in and enjoy! You are now a
proud home owner!
BUYER QUESTIONS
I'm thinking about buying
a home. Where do I start?
The first step in the plan for potential homebuyers is a credit
check. It’s best to keep an eye on your credit reports so
you can spot any mistakes and dispute them. Also, avoid running
up high credit card bills in the months prior to buying a home.
These two things will help you in the next phase of your game plan,
pre-approval on a mortgage. A full-service real estate broker will
be able to help you with this portion of the plan. Pre-approval
includes analyzing your income, assets and present debt to estimate
how much house you can afford. This means the lender has committed
to loaning you the money subject to the house you choose to buy.
Being pre-approved for a loan will make you attractive to sellers
because the contract won’t be tied up with financial issues.
After you know how much you can spend, you are in the homestretch.
This is the time for you to become familiar with neighborhoods and
the features of a home. Educate yourself by visiting local real
estate Web sites and viewing the inventory of listings. This is
also the time for you to decide what you want and need in a home.
A solid game plan needs a good coach, a American Executive Realty
Associate can help you through all steps of the plan, prepare you
for any unforeseen problems and eventually help you to buy the home
of your dreams.
Why do I need a Realtor
to help me find a home with all of the technology and advertising
available?
The Internet and newspaper ads are good places to start researching
what the current housing market is like. You can also find information
to help answer many of your financing questions. Once you have looked
at what’s available to you it’s time to get a professional
involved. You might spend hours scanning newspaper ads and home
magazines, driving through neighborhoods looking for “for
sale” signs or phoning on individual listings, and still miss
the opportunity to see some of the best homes available. A professional
American Executive Realty sales associate will save you time, money
and make a wealth of information resources available to you…so
together you can find that special home.
What should I consider when I start
to look for a home?
First, put together a list of features and benefits you want in
a home. Think of such things as pricing, location, size and amenities.
If you can’t get a home at the price you want with all the
features you are looking for, figure out what features are most
important to you and rank them in priority so you know what you’re
willing to give-and-take. Would you rather have a large kitchen
and smaller bedrooms? Also consider your needs in the future. Maybe
now is the time to buy a larger home rather than expanding a smaller
home in the future. Your Realtor can also help you compare the price
of homes with the features you are looking for or suggest alternate
uses of space.
How do I choose between renting or
buying?
Owning a home offers tax benefits as well as the freedom to make
decisions about your home. Homeowners, unlike renters, can secure
a fixed-rate loan and lock in their monthly payments and make investment
plans knowing these expenses won’t change substantially. However,
rent can go up each year without the renter’s input. Renters
are at the whim of their landlord, while homeowners are in control
of their property when it comes to decisions, such as whether they
allow pets, any decorating or improvements that are permanent. How
much can you afford? Click here.
What do all of those
abbreviations in the property ads mean?
If you find yourself stumbling to understand a description of a
property, the following list should help you out. We’ve composed
a list of some of the most frequently used abbreviations.
BA- bath
FDR- formal dining room
BR- bedroom
LR- living room
MBR- master bedroom
DR- dining room
FP, frplc, fplc,- fireplace
FR- family room
WBFP- woodburning fireplace
LL- lower level
entr- entrance
grmet kit- gourmet kitchen
dk- deck
pvt- private
gar- garage
pwdr rm- powder room
brk- brick
upr- upper floor
HDW, HWF, Hdwd-hardwood floors
As a buyer, do I have
the right to obtain past information about the property I am interested
in purchasing?
Yes. Sellers are required to disclose all known defects associated
with the property. With the help of your Realtor, you can find out
what has happened to the property in the past. You should make careful
observations, examine the property and request or otherwise obtain
any records important to you. These requests should be in writing.
If you decide to put an offer on a home, it is important to have
a professional inspection completed before closing.
If I am thinking about
buying a newly-constructed house, why do I need a Realtor?
Building a home often requires hours of research and decision-making.
You must first decide what area you want to build in and which builder
you want to work with. After these initial decisions, you still
have many choices of floor plans, building materials and fixtures.
Personalization and freedom of choice are some of the benefits of
building a home, but they can also be the stressful part. Using
a Realtor means you have a professional, someone with experience,
to guide you through the process. You’ll still get to make
the choices on your own, but your Realtor will be there to help,
keeping your best interests in mind. Also, buyer representation
comes at no cost to you.
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