|
Tom Lyons
Real Estate Expertise
Phone:
925.216.1105
License #:
01111027
|
The home buying process - simplified |
First Time Homebuyers
The home buying process - simplified
 By definition, as a first time homebuyer, it indicates that you have not done this before. Since buying your first home can seem like a daunting task, my guess is that you may have some questions or concerns. What follows is a outline of the entire home purchasing process. My hope is that it might answer some of your questions and relieve some of the stress of the home buying process for you. If you have additional questions, please contact me at realestate@tomlyons.com. Thank you!
Step #1. Talk with a reputable lender.
One of the first things to do is to speak with a lender and find out how much of a mortgage you can qualify for. The amount of an approved mortgage amount will give you an idea of the top purchase price to consider when looking for a home. Plus, you also need to be comfortable with the mortgage payment .... which includes mortgage principal, interest, real estate taxes, and homeowners insurance. You need to be comfortable with the payment and make sure that you are not overextended. If you do not know where to start with your lender search, we've great, reputable lenders that can help you. If all you can afford is a $300,000 home it may not make sense to look at homes priced at $500,000. Chances are that you'd like the more expensive home .... and that you would not be able to qualify for it. By finding out, in advance, how much of a home you can afford, you can narrow your home search to those homes you can afford.
Step #2. Decide what kind of house that you want. Decide where you'd like to live.
My guess is that you have some preferences as to the style, size, age of home that you'd like to buy. Plus, not only do you have to decide which city to purchase, but which portion, or location, within a city. Info on outstanding schools and community information usually come into play in helping a family decide what and where to live. Take your time with this decision and don't move forward until you are sure.
Step #3. Looking for your first home
Nowadays, the Internet is the first place to look. Use the Internet to narrow your search so that you can visit just those homes that are of particular interest to you. Choose a realtor who is a local expert, one who has years of experience in real estate, one who knows the cities that you are interested in very well. There is no substitute for the input of a professional realtor. Their advice is invaluable to you in your search for your first home. A professional realtor can quickly give you info on market value changes from city to city, and from neighborhood to neighborhood. They can advise you on home construction, possible defects and needed repairs and a professional realtor can help you through the complicated maze of buying foreclosures in todays market.
Look at a large number of homes and do not move forward until you feel comfortable about your choices. Bear in mind that purchasing foreclosures is popular with first time buyers for 2010 ..... and that short sales can take 3-4 months to complete a purchase .... and that purchasing an REO can be complicated since, first, you must purchase the home "as is" and that you may be competing against other offers for the REO and that they tend to sell quickly. Follow the advice of your professional realtor with foreclosures as they have their "pulse" on the market and can offer you invaluable advice.
Step #4. Making a written offer.
Just as you find the value of cars by checking items like Kelleys Blue Book .... you can check the correct market value of a house by checking recent solds on similar homes. Market value is what you are looking to find out .... and again, your professional realtor is invaluable to you at this point. Have your realtor present comparables to you (Again, recent solds, in the immediate area on comparable homes) so that you can decide what is a fair price to offer for your first home.
In California, the purchase contract is a 10 page legally binding document ... so follow your realtors advice when making a written offer.
Step #5. Escrow.
Once you are in contract, it can take anywhere from 30-60 days to close escrow. A number of things happen in this period. First, your loan package is submitted for final approval. Your lender will let you know what information, he or she, needs to do this. The property appraisal takes place. The title company prepares a preliminary title report for you in order to insure the property against title claims. (Your realtor will help you with all of this.)
Written into the purchase contract is a time period for you to perform your due diligence .... which means that it is a good idea to have a number of inspections on the property .... such as roof, pest, and home inspection .... so that you can be sure that the home you are purchasing is in good condition. Statutory (required by state law) forms must be read and approved. Once again ... all of the above items, escrow items, are facilitated by your professional realtor. As a first time homebuyer this is the first time that you have seen this kind of thing .... your realtor is the person that makes this whole process smooth, easy, and problem free for you.
Step #6. Closing and moving.
The house is yours once your loan is approved and funded. Then the title company records the deed with the county offices ..... and the home is yours. You now begin your journey in home ownership and all of the joys and benefits that being a home owner provides.
|
