07/11/2023
Looks like a lot of people are buying homes for the first time. Now THAT'S adulting!!!
๐๐๐ฅ๐ ๐ฆ๐ข๐ ๐ ๐ง๐๐ฃ๐ฆ ๐ฌ๐ข๐จ ๐ฆ๐๐ข๐จ๐๐ ๐๐ก๐ข๐ช ๐ช๐๐๐ก ๐๐จ๐ฌ๐๐ก๐ ๐ ๐๐ข๐ ๐:
1. Hire a Realtor! Typically, the seller pays commission to both the sellers agent AND the buyers agent so it is no additional cost to you. The Realtor you hire doesn't just open doors. They will help you find your dream home, be YOUR advocate, negotiate for you, ensure you fulfill the obligations of the contract on time, provide contact info to resources you will need throughout the process and guide you through the entire transaction. By the way, even if you're buying a new build YOU NEED A REALTOR! The sales agent at the model home works for the builder and not you.
2. Get pre-approved for a loan so you know your budget. The loan officer may also give you guidance on how to improve your credit to increase your loan amount or lower your interest rate! Your Realtor can give you the contact info for lenders. Not all lenders are the same and your Realtor will be a great resource of information to connect you with a lender that may be best for your financial situation. The lender will also give you an estimate of your monthly mortgage payment and funds needed to close which includes down payment AND closing costs. You will pay your down payment and the majority of your closing costs on your closing day. Some of your closing costs will be paid shortly after an accepted offer such as option money (varies by state), earnest money and appraisals. ๐ฌ๐ผ๐ ๐ป๐ฒ๐ฒ๐ฑ ๐๐ผ ๐ฏ๐ฒ ๐๐๐ฟ๐ฒ ๐๐ผ๐ ๐ต๐ฎ๐๐ฒ ๐๐ต๐ผ๐๐ฒ ๐ณ๐๐ป๐ฑ๐ ๐ฎ๐๐ฎ๐ถ๐น๐ฎ๐ฏ๐น๐ฒ ๐ฏ๐ฒ๐ณ๐ผ๐ฟ๐ฒ ๐๐๐ฏ๐บ๐ถ๐๐๐ถ๐ป๐ด ๐ฎ๐ป ๐ผ๐ณ๐ณ๐ฒ๐ฟ ๐ฏ๐ฒ๐ฐ๐ฎ๐๐๐ฒ ๐๐ต๐ฒ๐ฟ๐ฒ ๐๐ถ๐น๐น ๐ฏ๐ฒ ๐๐ถ๐บ๐ฒ ๐๐ฒ๐ป๐๐ถ๐๐ถ๐๐ฒ ๐ฑ๐ฒ๐ฎ๐ฑ๐น๐ถ๐ป๐ฒ๐ ๐ถ๐ป ๐๐ต๐ฒ ๐ฐ๐ผ๐ป๐๐ฟ๐ฎ๐ฐ๐. Your lender and Realtor can give you an estimate on what that portion of the closing costs may be. Your lender will also let you know if you qualify for down payment assistance which will lower the amount of money you will need on closing day.
3. Once you're pre approved, it's time to go shopping! You and your Realtor should have a thorough conversation about your housing needs so they can send you homes that match that criteria.
4. Once you find a home, your Realtor will submit an offer and negotiate for you. Once your offer is accepted, you will pay earnest money and schedule an inspection. When you complete an inspection, you'll learn about the house and negotiate for repairs. Every home will have items appear on an inspection report but don't be scared. The inspector and your Realtor will help you focus on items of concern and items that a handyman can do after closing or diy projects. If you decide to move forward to closing, this will also be credited to your closing costs on closing day. If you decide to cancel, this money goes to the seller to compensate for their time off of the market.
๐ช๐ต๐ฎ๐ ๐ถ๐ ๐ฒ๐ฎ๐ฟ๐ป๐ฒ๐๐ ๐บ๐ผ๐ป๐ฒ๐?
Earnest money is good faith money to show you are a serious buyer. It is usually about 1% of the offer price but it's negotiable. These funds are credited to your closing costs if you close. If you cancel the contract, you may lose this money. There are many reasons you can cancel and get your earnest money back and your Realtor can advise you of all of those opportunities. During this period is when you will complete an inspection, learn about the house and negotiate for repairs. Every home will have items appear on an inspection report but don't be scared. The inspector and your Realtor will help you focus on items of concern and items that a handyman can do after closing or diy projects. If you decide to move forward to closing, this will also be credited to your closing costs on closing day. If you decide to cancel, this money goes to the seller to compensate for their time off of the market.
5. When you're under contract, continue working with your lender to get fully approved. Do not open be lines of credit or do anything that will negatively impact your credit score. Your lender will give you more details. Your lender will also order an appraisal to ensure the home is valued at or over the offer price. You usually pay for this when they order it. It is not refunded if you cancel so it is usually ordered after your option period when your inspection is completed and you've decided you are moving forward with the purchase. If you do close, this is also credited to your closing cost on closing day.
6. A title search is completed to ensure you will have clear title to the home. That means no one else will be able to claim your home like an heir, spouse or relative of the seller.
7. You're in the home stretch to becoming a home owner. Time to schedule for transfer of your mail, set up your utilities, start packing and arrange for movers.
8. Once there is clear title and you a fully approved, you will be clear to close. You will sign documents which will include the deed to the house. You will also pay the balance of your closing costs and down payment. Once you're done, ๐๐ข๐ก๐๐ฅ๐๐ง๐จ๐๐๐ง๐๐ข๐ก๐ฆ, you're a homeowner!!!!
Ready to adult? Let's chat!! I cover the Central Indiana area but have connections all over the world.
317-442-8827
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