Home Purchasing Options
Purchasing a home is both an exciting and busy time. Finding a home that meets your needs and navigating the process can be overwhelming. Knowing your options can help you along the way.
Having an understanding of the current market conditions may help you both in your search for a home and in negotiating the best offer when you have found the home you want to call home.
Preparing to Purchase
The more prepared you are when you find your perfect home the better positioned you will be to negotiate an offer. Taking time to prepare can also reduce your costs and the stress along the way.
Steps to Closing
Once your contract is accepted by the seller there will be important tasks to complete prior to closing. Everything is time sensitive. Your Realtor is an important resource to helping you navigate these steps.
things to consider
There is so much to think about when planning to purchase a home. You want to make the best choices. Take your time and consider the things that are most important to you. Ask your Realtor as you have questions.
Finding Your Perfect Home
Home Purchasing Options
defining Your Perfect home
Your vision of your perfect home is extremely important. The old saying “home is where the heart is” is as true today as ever. You have needs and desires for what works best for you and your family. Taking some time to think about what you envision to be your perfect home will be of great benefit as you begin the process of purchasing a home. Too often, buyers skip this step making it difficult to make quick decisions. These days with homes moving quickly the quicker a buyer can deliver an offer to the seller the better. Knowing what you must have in a home and what you do not want in a home can definitely save you time in looking and help you make your final decision. Have you defined your perfect home?
Finding YOur Perfect Home
Once you have a clear idea of your perfect home it is important to know that you have options of services to help you find the home you desire. Although internet searches are helpful, have you noticed how once you see a home come on the market they are pending/under contract almost as quickly as they became available? There are several reasons why this happens but ultimately your best option for not missing out on potential homes that meet your criteria is to have an experienced Realtor working diligently to help you beat other buyers to the home.
Buyer Brokerage Agreement
A buyer brokerage agreement is an agreement between a buyer and a real estate brokerage to assist the buyer in locating and negotiating a purchase of real property. In simple terms with the signing of this agreement the buyer is actually hiring a real estate brokerage to assist them with the purchase of their home. This assistance comes in the form of the services offered by the Realtor working as an agent of the real estate brokerage.
Services Danna Provides as your Realtor
The JPAR Mobile app
get the latest listings, view recently sold properties, scan your location and more!
Click the JPAR (JP & Associates REALTORS) logo or scan the QR code to get instant access to listings immediately as they are entered into the multiple listing service (MLS).
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Learn more about your home purchasing options. Danna is happy to serve your real estate needs and discuss your best home purchasing options. Give Danna a call today.
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What You Will Need
Preparing to purchase
choosing a mortgage lender
Unless you are planning to purchase a home with cash, you will need to obtain a mortgage in order to purchase a home. There are many mortgage companies and banks in the marketplace advertising their services for providing home loans. Choosing the best one to handle your home loan is important.
If you have spent much time looking online at homes, you may have noticed the number of homes that show a status of “Back on the Market”. One of the primary reasons for this is the buyer’s loan was not able to close.
If a loan is unable to close it can be due to a number of reasons. Mortgage lenders must look at credit scores, debt to income ratios, income stability, amount of cash savings and other criteria. Some lenders do not even begin looking at all of these factors until a buyer has a home under contact. This has led to many disappointed buyers and sellers.
pre-approval vs. Pre-qualified
In the video above, Danna discusses the difference between being pre-approved or being pre-qualified and how important this difference can be when shopping for a home.
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What to expect when applying for a mortgage loan
Before loaning a buyer money to purchase a home the lender will have to thoroughly evaluate the purchaser’s ability to pay back the loan. Some lenders will take an application over the phone while others request you fill out an application online. See some of the questions you may be asked below.
Give Danna a call or send a text message. There is no obligation to purchase, Danna is happy help you get your questions answered.
The Big three
The amount of cash you will need to close on your home will depend upon several factors. One factor is the type of loan you are seeking. Your loan type will affect the amount of down payment you will need as well as your closing costs. The location of your home is another factor that can affect the amount of cash needed to close. The location of a home can affect both the tax amount and home owner’s insurance which could raise or lower the escrow funds needed. Whether or not the home is located in a home owner’s association can also affect your closing costs.
There are 100% financing programs that do not require an out of pocket down payment which can be very helpful for first time homeowners. Other loans may require anywhere from 3 to 30% of the purchase price. The most common loans for purchasers intending to live in the home will require between 3 and 5% for a down payment.
Pre-paids or escrow funds
Lenders require that your taxes and insurance are escrowed into an account so that when the property tax bill and homeowner’s insurance policy are due each year the lender can ensure they are paid. The escrow account is set up initially when you complete the home purchase at closing. Depending upon the lender’s requirements you may need enough pre-paids to cover a 1 year insurance policy and 2 to 4 months worth of property taxes. In Georgia an average Home Owner’s insurance policy is $1267 but this varies depending upon the amount of coverage needed and the deductible chosen. Property taxes vary by county.
Buyer closing costs cover the cost of purchasing a home including things like lender fees, real estate commissions, attorney fees, title examination charges, title insurance, county and state recording fees, and HOA initiation fees. Some of these costs may be negotiated with the seller during the process of submitting an offer. However, in a seller’s market it is a good idea for a buyer to plan for these costs if needed.
simply put, what Needs to be done to close on a home
steps to closing
Prior to Going under Contract
Your Beginning Steps
The importance of dates
When you go under contract to purchase a home you are participating in a legal transaction and the stakes can be high both for yourself as the buyer and for the seller. For this reason, your contract will have the following terminology, “Time is of the essence.” This means that the dates within the contract must be adhered to by all parties and failure of one party to perform as required by the contract could have negative results such as a breach of contract or other legal consequences.
common dates in a real estate contract
protecting your best interests
Daily responsibilities do not stop when you are purchasing a home. Most buyers still have a job to report to each day, many have children or other time consuming obligations. Your Realtor can help keep you on track making sure all of the deadlines of your contract are met and thereby protecting your interests along the way.
Even prior to entering into a binding contract your Realtor is your experienced and knowledgeable resource. A Realtor working in the business daily understands how to advise you best to protect your interests. With experience and constant training Realtor’s who perform the job day after day throughout the years have gained important insight into how to handle even complicated situations. When you begin your home purchase process it is a good idea to choose a Realtor whom you can trust to put your interest first and ensure you are protected throughout the process.