Prepared and on the Hunt

Prepared and on the Hunt

Are you thinking about buying a new home and want to know how you can be prepared in case the perfect home pops up on the market? Currently, inventory is low especially considering this is the fall market. What this means for home buyers is that there are going to be multiple people looking for the same thing.

The first step (if you are not going to pay cash) is to get pre-approved from a lender. Getting pre-approved will let you know how much you can actually afford and when you are ready to put an offer in on a house, the sellers will see you are qualified and ready to go. In order to apply for a loan you will need:

1)      Copy of your past 30 days of pay stubs.

2)      Copy of your W-2 forms for the most recent 2 years.

3)      Provide past 24 months employment history.

4)      Most recent 2 years federal income tax returns with all schedules.

* Check with the loan officer for extra requirements based on your individual situation.

REMEMBER: when applying for a loan, DO NOT:

·               ·        Change jobs, become self-employed or quit your job.

·         Buy a car, truck or van (or you may be living in it)!

·         Use credit cards excessively or let your accounts fall behind.

·         Spend money you have set aside for closing.

·         Omit debts or liabilities from your loan application.

·         Not buy furniture.

·         Originate any inquiries into your credit.

·         Make large deposits without first checking with your loan officer.

·         Change bank accounts.

·         Co-sign a loan for anyone.

Step two is to narrow your search criteria. Think of the community you want to live in rather than just a house you like. How many bedrooms and bathrooms do you need? How many square feet does it need to be? Looking for acreage? Consider neighborhoods with home owners associations and large dues. Areas with high taxes. Do you have kids? Think of the school district that would best suit your family. If you are working with a realtor, your realtor cannot steer you to any area. It will be up to you to investigate information regarding schools, the quality of the communities, etc.

Step three is to ask your agent to set up appointments for any homes you might like. Start touring and hopefully you’ll find the perfect home.

Step four is placing an offer on the home of your choice. You will need an earnest money deposit. Usually your realtor’s real estate brokerage holds this money in a non-interest bearing account until the end of the transaction. This is a sign of good faith to the seller that you are qualified and ready to move forward in the process of purchasing that home.

Step five is the home inspection. Your agent should accompany you to this. If there are any issues you will have a certain number of days to decide if you want to walk away from the home or if you want to negotiate with the seller to come down in price or fix certain items. You also have the opportunity to move forward as is without asking for anything.

Step six is the appraisal. Once a licensed appraiser produces a value for the home and it meets at least the offer price on the home, you are ready to move forward and there will be a clear to close from the lender. Closing will be scheduled, and documents will be sent out to review.

Step seven is closing! Enjoy your new home! 

photocredit: image 1 http://thehomebuyerguygj.com/getting-a-mortgage-in-2015/ 

image 2 http://expertbeacon.com/buying-home-hoa-neighborhood-can-be-great-move/#.Vj0Z8LerTIU 

image 3 http://creditablehomeinspections.com/