Overview of the Buyers Process

• Contemplate the Purchase of a Home or Property 
• Hire a Real Estate Agent 
• Decide your Needs and Wants 
• Determine Any Financial Issues 
• Research and View Targeted Homes and Properties 
• Make an Offer to Purchase a Home or Property 

 Top things to know  

 1. Get professional help.  
 There are many avenues now where homes can be found on your own but hiring a Real Estate agent will have the experience, know-how and tools you won't have to find what you are looking for. They also will take you through the many things that will need to be done, and ensure you avoid making wrong decisions and that the process goes through as it should, they have the experience to spot the hidden surprises you could miss, don't go without that in your home buying arsenal!.

 2. Clean up your credit.  
 Ensure months before you embark on your home buying excursion that you clean up your credit. Get your Credit Report from the 3 top agencies along with your FICO Score, as that's what they use to decide whether to approve your mortgage loan or not and what the interest rate will be. Go to www.myfico.com to get the reports and your FICO Scores and be sure to understand what that means. The agencies are: Experian, Equifax, and TransUnion, be sure not to miss any of these as any could be used to pull your credit info.

 3. Don't go over your head in what you can afford.  
 The industry ideology Lenders use especially for first home mortgages is you can afford up to two-and-one-half times your annual salary. But be sure to take into account everything in your budget and how that factors in to that amount which they will also look at.

 4. 20 percent is the Standard Amount to put down, but certainly is not set in stone.
 There are many lenders that will take as little as 3 percent down payment on a home mortgage but this will up the monthly mortgage payment considerably. Pay as much as you can without tapping into your emergency funds or other assets. As a side note, you should have at least 3 months living expenses saved in case something happens such as a car breakdown or illness, don't leave yourself open to problems by spending every cent you have on getting the loan.

 5. Districts with good schools are always great investments.
 Even if you do not have children, homes in areas with good school districts always tend to go up in value and are a prized commodity for people looking for homes that have children. Sometimes this can be the deal-maker even if the house wasn't exactly what they were looking for.

 6. Points and the Rate, an important decision.
 You most likely will have the choice of paying additional points, usually 1% of the mortgage per point in exchange for a lower interest rate. If you are going to remain in the house for 6 years or more it's usually a better deal to take the points. The lower interest rate will save you money down the line.

 7. As part of cleaning up your credit, get your loan pre-approved.
 Having your loan pre-approved by a lender will put you in a much better position
of power when you find that house you are interested in. Many times houses need
to be sold in a very short period of time especially in a wanted area or when the
market is hot, don't lose out to another buyer that has this done. You also will be
in a better position for the price-haggling process being they already know you
have the money to buy. This is not the same as pre-qualification, which is merely a
review of your finances, pre-approval from a lender is based on your actual
income, debt and credit history.

 9. Use your Real Estate Agent's advise before bidding.
 The agent will know the sales trend of similar homes in the neighborhood. They will
consider sales of similar homes in the last three months. To get that home at the best
price if the homes bought were at 5 percent below the asking price, go to 7 – 10
percent below as your starting bid. Also your agent may have other tips for how to
determine the price to start at with other factors you may not be aware of.

 10. Inspect, inspect, inspect.
 Yes, you will need to get an appraiser in for the lender for starters. That is just for the bank
to determine if the home's price is in reality what it's worth. But you should hire your own
appraiser, one that will have your interests in their heart, that can possibly point out any flaws, appliances ready to go, or other things the first one may have missed which could cause major problems for you down the road. 

 11. Investigate the area.
 While it is the ordinary custom to have an professional home inspector analyze
objectively  the condition of the home you may be interested in purchasing there is
another part to your due diligence that should not  be ignored and that is finding out
pertinent information about the surrounding neighborhood.

 Make a visit to the neighborhood at a time when neighbors are more likely to be
around if you attend a showing during the day, such as Saturday morning or directly
after work hours during the week.

Attend an open house in the area in hope of obtaining any names
addresses and phone numbers from someone who lives in the area where you are
considering.  And if you are fortunate enough to talk to someone from the
neighborhood find out how long they have lived there and if they may have any
awareness of proposed changes in local facilities, such as a school that might impact
the quality of life or the possibility of a new freeway.  Don't hesitate to ask if there
are any crime issues you should be aware of; after all you are interested not only in
a fabulous house but a safe and logical area to invest in as well. 

Check with the local Chamber of Commerce to find out any information they may
have on the area.  If you are concerned about the neighborhood as far as crime rates
go; visit your local precinct and simply ask.  The internet is another valuable source. 
A Web site such as www.neighborhoodscout.com  may be helpful in your
investigation.  If you're buying from a distance you may subscribe to a local
newspaper and read about the potential area.

Ask your real estate agent how often homes change hands in an area.  A low turn
over indicates a desirable area in most cases.  There tends to be a director
correlation between property values and the caliber of the schools present in that
market.  So whether you have children or not who will be planning to go to school
don overlook this very important factor. 

Evidence of remodeling can be an indication that home owners in the market are
satisfied with living in their community and are staying put rather than moving out.
Take a personal tour of the shopping area and stop for a bite to eat.  See if the area
offers leisure opportunities which appeal to your life style such as hiking trails if you
like to hike, etc.  Run a couple of errands and see how it may feel to visit these places
frequently as once you are a homeowner these place with become your
conveniences. Drive from work to the potential new home during rush hour to
enlighten you as to drive time and perhaps look for a scenic route to enjoy or a
shorter one if it exists. If there's public transportation, try it out. 
 

                                   COMPARATIVE MARKET ANALYSIS

A Comparative or (Comparable) Market Analysis is produced by a real estate agent to compare similar properties in the same general neighborhood. This is an extremely valuable tool when trying to determine the market value of a specific home.

Time to Bring it all "Home" at the Closing

When you have finally found the home you wish to purchase, you have negotiated an agreed upon price and have had a professional inspection completed, you have applied for a mortgage and obtained a firm commitment from a lending institution the focus is turned to the Closing,. Settlement, or Escrow as it is known in some localities. For the sake of simplicity our we will refer to the process as Closing. Understanding the elements of a closing will help to relieve the anxiety of the day when it comes to closing and signing all the paperwork at last that will make the house "yours at last".

Once all the papers have been signed and (expect to sign more documents than you ever have in your life) in most cases.  The house will then be titled in your name and a verification of homeowner's insurance on the property will be established, your mortgage agreements will be completed and signed and the keys to your house are put in your hands.  So the weeks or months it took to prepare for this moment have now come to fruition and everything is settled upon at closing.

Often times closings procedures occur at a Bank, a Title Company, Attorneys office, or an Escrow Company.  In most cases, the buyers, sellers and real estate agent,  attend the closing along with the attorney they have hired to review all the components if the sale and the closing agent who will say the words "sign here" more times than you have ever heard in your life.

What Will You Need to Bring At The Closing?"

Preparing for the closing :

A Closing cost estimate: This should first be given to you by your Agent at the time of the contract, and then given to you by the Lender, a Good Faith Estimate, shortly after the application for the loan. This should give you a reasonably close estimate of funds you will need at the time of closing.

Homeowners' Insurance Policy: This must be secured prior to the date of closing.

Settlement Statement: You should have a copy of the Settlement Statement ( it gives you the total amount of cash you will need at Closing and also how those various funds will be dispersed before the date of Closing). In addition, it gives you an opportunity to iron out any discrepancies prior to sitting down at the Closing table. Your Agent should also have a copy for review.
Generally this will not be available until one or two days prior to the actual Closing. This gives you a final opportunity to go over any discrepancies in the purchasing agreement.