Every buyer wishes to buy the perfect home, at the best price and through a smooth transaction. This is not always the case and many times there is a hiccup or two in the procees. Here are a few tips on how to make the home buying process as smooth as possible.
1. HIRE A BUYER’S AGENT
A buyer’s agent will represent you and have a fiduciary responsibility to look out for your best interests. The Buyer’s agents may ask you to sign a buyer’s broker agreement, but it is the seller who pays the commission. Ask your friends, family, and co-workers for agents they have worked with and pick the one you feel most comfortable with.
2. DEFINE YOUR NEEDS
There are hundreds of different homes in different locations with different amenities that you may be able to choose from. It is best to have your Buyer’s Agent help you determine what amenities are necessary for you to help you narrow down your search results. Some things to consider may include number of bedrooms, bathrooms, second floor, first floor, single family home, condo, town house, private pool, no pool, stairs, no stairs, etc.
3. ORDER YOUR CREDIT REPORT
Use one of the authorized credit report agencies to get your Credit Report. Review this and fix any mistakes that there may be. Having any mistakes on your credit report can negatively affect you when you are trying to get a home loan.
3. GET PRE-QUALIFIED/PRE-APPROVED
Get in touch with a mortgage broker or direct lender to get pre qualified and determine your maximum loan amount as soon as possible. If you begin your house hunting search before this critical step and you do not know what price you are pre qualified for, then you could have spent all your time looking at homes you cannot afford.
4. MOVE SWIFTLY & BE FLEXIBLE
Today is a competitive market, especially if you are a buyer. Homes are receiving multiple offers and some are going above asking price so any advantage may help. Viewing a home as soon as it hits the market and placing a strong offer may put you at the front of the pack. Once in escrow do your best to get documents signed and returned to your agent, lender, escrow, title company or whoever is requesting the documents. Many times an escrow is delayed because an individual is taking their time on getting documents executed. Time is of the essences.
5. CONSIDER YOUR FINANCING
When a seller receives an offer they will take the buyer’s financing into account. If a seller received three identical offers with the only difference being one with a full cash offer, one with a conventianal loan, and one with a FHA loan, then the order of priority would be the Full Cash offer, followed by the Conventional Loan, and finally the FHA Loan.
6. NEGOTIATE & WRITE COUNTER OFFERS
When you begin negotiating and write counter offers be sure to share information about your personal life and family. This could give the seller a reason to care about you and your offer. With two identical offers a seller may be more inclined to pick an offer from somebody who they can relate to.
7. COMPLY WITH LENDER REQUIREMENTS
At the beginning of the home buying process you were pre-qualified by a lender for a home loan. However, you must maintain your financial standing to get the loan approved and funded at the end of escrow. If you make a big purchase, get a personal loan, or load up your credit cards with debt your loan may be denied and you could lose the home of your dreams.
8. ATTEND THE HOME INSPECTION
Be sure to hire a reputable home inspector and bring a home inspection list for yourself. If necessary you may request for repairs by asking the seller to address those items or to credit the items in escrow. Realize, no home is perfect and you will find faults, be reasonable.
9. DO THE FINAL WALK THROUGH
Do not waive or pass up the final walk through. Inspect the property and make sure it is in the condition you agreed to purchase it as. This is your last real chance to bring up an issue that has not been completed.
10. DEPOSIT FINAL FUNDS
Before your loan can be funded to purchase the home, your remaining closings costs and down payment will need to be deposited into escrow. Instead of the usual cashiers check an electronic wire transfer may be a much faster and more convenient option for EVERYBODY.
11. MOVE IN!!!
It is always a good idea to have new locks installed on all the doors.
