First Time Home Buyers

First Time Home Buyer's Guide

What to expect from the process

Before you shop for a home, unless you’re paying cash, mortgage pre-approval is your #1 home buying preparation tool.
It’s probably a good idea to get pre-approved for a mortgage before you start the house hunting process. It will help you identify any obstacles to approval, such as having too much debt or a low credit score. Pre-approval also:

a. Tells you what price range you can afford
b. Realtors and sellers won’t take you seriously without it c. Your mortgage process will be smoother and faster

2 . C O N S U L T A T IO N

The objective of client consultation is to discover the clients needs and concerns so you the client can feel comfortable that I will offer you with the best help and advice.

a. Sign Agency Relationship and Broker representation

3 . S T A R T I N G T H E H O M E S E A RC H

You will be put on an auto email search for specific location as discussed above

4 . M A K E A N O F F E R

M A K E A N O F F E R W H E N Y O U F I N D T H E R I G H T H OU S E

As soon as you find a house the you likes, we will immediately put in an offer to buy the house at a given price and conditions if necessary.

a. Earnest Money (Down Payment)

Earnest money is a deposit made to a seller that represents your good faith to buy a home. Once deposited, the funds are typically held in an escrow account until closing, at which time the deposit is applied to the buyer’s down payment and closing costs.

5 . I N S P E C T I O N –

B U Y E R P A Y S F O RI N S P E C T I O N ( $ 2 5 0 – $ 7 0 0 )

After the offer is accepted. We will have 10 days to schedule and complete inspection. The buyer is responsible to pay for the inspection, which typically ranges between $250 – $1,000 depending on the property size.

6 . M O R T G A G E U N D E R W R I T I N G

( A L O T O F D O C U M E NT S T O S U B M I T )

This is a process in which the lender uses to access risk and ensure a borrower meets all of their minimum requirements for a home loan. Expect the underwriter to ask for a lot of documents. Providing these documents in a timely manner will facilitate your house closing process.

7 . A P P R A I S A L

B U Y E R P A Y S F O R A P P R A I S A L

( $ 4 0 0 – $ 6 5 0) – S A L E S C O M P A R I S ON A P P R OA C H

A home appraisal is an unbiased report on the worth of a house in the fair market, performed by a trained and licensed individual. Appraisals are needed to ensure the homebuyer, the home seller and the mortgage lender receive the accurate and true value of the real estate in question. Buyer will pay for it.

8 . C L I E N T S H O P F O R H O M E I NS U R A NC E

A house itself can become a liability to the owner if it’s not properly insured. That’s why they typically require borrowers to purchase home owner’s insurance before closing day.

9 . F I N A L L O A N A M O U N T A P P R O VE D

1 0 . C L O S I NG

The closing is when the buyer and seller sign the papers officially sealing the deal, and ownership of the property is transferred

a. Closing Cost

The home buyer or seller will pay between about 2 to 5 percent of the purchase price of their home in closing fees. Or the fee could be split between the buyer and the seller.