Purchasing a home is likely the most significant financial decision you will ever make. Whether this is your first purchase or you’re an experienced buyer, you must be careful in your decision-making. There are numerous reasons for someone to purchase a new home. Whether you are putting roots down, buying your first property, improving your portfolio, looking to live closer to your child’s school, or want to live somewhere new, we aim to make your home-buying process as easy and seamless as possible. This means we want you to understand the buying process.
Sorting out your finances
The first step before buying a home is to ensure you have a down payment saved for your purchase. Most lenders will require you to have a down payment for your home loan. However, lenders typically have various loan products to borrow up to 100% of the property value if you qualify.
Pre-approved finance
Approach lenders to get finance pre-approval to understand what price range you can receive for your new home purchase.
Do your research
Explore some of your favorite neighborhoods that possibly suit your needs and, more importantly, your budget. You can do this online, where numerous property comparison sites will indicate the average sale price of property in that area. We also recommend visiting your chosen neighborhood at different times of the day. Does it still excite you early in the morning? Do you feel safe late at night? Can you see yourself living there comfortably?
If the answer is yes, and there are homes you are interested in, give their open houses a visit. Seeing them in person will provide you with a new perspective of the property while also allowing you to do a thorough inspection of the home.
How to make a formal offer
The best way to make a formal offer and avoid confusion is to make the offer in writing. In most situations, we will provide you with a contract to start the process, highlighting any sale contingencies. Once we have written it up, we will then present your offer to the sellers.
After your offer is accepted
If your offer is accepted and all parties have signed the contract, your agent will open escrow and you will have about three days to pay the required deposit. Typically, this amount is three percent of the agreed purchase price.
Property purchase costs
Financial fees vary greatly, depending on such matters as what percentage of the property value that you will be borrowing, the amount of the loan, the amount of the purchase, and which bank is lending you the funds. By speaking to your local agent, you can quickly ascertain approximate costs for your particular circumstances.
Possible expenses you may incur:
* Bank fees.
* Escrow charges may include legal searches (please consult your attorney or agent).
* Home protection insurance.
* Miscellaneous costs such as building inspection and revivalists.
Completing the purchase
The day of closing, the escrow office will complete all transfer documentation, reconcile all monies, and distribute all money. Upon recording with the county office, unless previously agreed otherwise, the agents will transfer keys.
See Also: A Guide To Buying Your First Home, Guide to Buying at Auction, The Buyer’s Checklist