Buyer's Guide

Before you head out to look at homes, you will want to know exactly how much home you can afford or how much you want to spend on a monthly payment. This depends on what you are approved for. You may think that you will want to spend $600,000 on a new home, but a lender may think otherwise. You may also qualify for $800,000, but not want to make the higher payment that comes with borrowing more money.

Make sure to get pre-approved by your lender and not just pre-qualified. A pre- approval will give you your exact loan terms and will be required when making an offer.

It will require you to complete a mortgage application. where the lender will check paperwork such as your paystubs, bank statements and tax returns. They will also check your credit and employment history. All of this will determine how much a bank will approve you for and at what interest rate.

Once you've chosen to work with a buyers agent, you will want to discuss your needs and wants in your new home. You should have some ideas of non-negotiable's, but you may need to be more flexible with your wants if you are competing in a seller's market.

Your agent can set up your home search requirements so that you can be notified immediately when a home hits the market and meets your needs and wants list. When a house you want to see comes on the market, your agent will set up a property showing for you.

A home inspection is a must when buying a home and is often required when using a loan to finance. This is a direct buyer cost and most home inspectors charge ~ $475-$500 for their service.

A home inspection will be done by a professional, who will check for anything that may be wrong with the house. Think mold, leaky roof, faulty foundation. They also mark minor things, such as missing tiles in the bathroom or broken seals around the faucet.

After the inspection is complete, you will get a full report on the home and any faulty findings. Should something come up, you have an opportunity to ask the seller to fix the issue, back out of the contract, or decide to fix it after you move in.

Most lenders, however, will require major issues to be fixed before they will sign off on the loan.

Before you get the keys handed over to you on closing day, you will need to take these steps to finalize your home:

Your Homeowner and Title insurance will happen through the closing process that you will do with a lawyer of your choice. You will be required to meet the conditions of your loan, such as paying your down payment and finalizing your loan. You will then want to start packing up your current home and hire movers.

Next, you will walk through your new home before closing, to make sure that the home has been vacated and left in substantially the same condition as when you purchased it.

On the day of possession, the money will be transferred. your lawyer to the seller’s lawyer, the title will transfer to your name and the keys will be released. This typically happens around noon but it could be sooner or later depending on funding time and your lawyer’s workload for the day.

Congratulations! You are now a homeowner!