Buying Process

     Buying a home can be a very stressful experience: so when it's time for you to buy, it is important to be prepared and to make well-informed decisions. The following paragraphs describe the major steps you should take to make the process easier on you.

 Mortgage Pre-Approval

     One of the very first things you should do as a prospective buyer is to meet with a mortgage broker to determine the price range that you will ultimately qualify for when applying for the actual mortgage.     The mortgage broker will do a credit check for you and advise you of any conditions that need to be addressed to make you a more qualified buyer.   The mortgage broker can also begin the pre-approval process which goes a step beyond the credit check and includes verification of employment, bank accounts, and available assets.  This process usually has an associated fee, but is invaluable in the negotiation process when you find the home of your dreams.   Remember,  'pre-qualified'  means that the mortgage broker relied on your verbal answers to questions regarding your employment and financial status.   'Pre-approved'  means that you actually provided the mortgage broker with hard copy documentation of the following:   past two years of W-2's,  past two months of bank statements,  and past two paycheck stubs.

Pre - Home Search 

     Make a list of those items that are important to you in the search of your dream house.  Then go back to the list and mark which of the items are 'musts'  and which of the items are 'desired'.   The fact of the matter is that you will probably not find a home that meets all of the items on the list, so giving some thought to priorities will help in assessing each home you preview.  

Making An Offer     

     After viewing a number of homes with your Agent,  you will eventually come upon a home that you would like to buy.   The first step in that direction is to work with your Agent to prepare a written contract offer which typically is accompanied by a refundable deposit of $500 to $1,000.    Your Agent will work with you to advise you as to what comparable homes sold for in that area  in the past 3-9 months.    Your Agent can also provide you with other related information about how long the home has been on the market,   if there has been any recent price reductions on the home,  and if there is any additional information available that will aid you in determining a good starting offer.

     In addition to price,  other factors that are important with the submission of a contract offer are:   desired closing date,  contingencies,  and any special conditions you may want to include. 

     The offer is then presented by your Agent to the sellers Agent who will then present the offer to the seller.   Your offer is then described in detail while focusing not only on the strengths of the actual offer but also on you and your ability to close the deal.  Your agent will ensure that the sellers agent fully understands your offer.

    The seller will review your offer and all conditions and will then 'counter' with a revised position, primarily on price but possibly on closing date and any other issues you presented in your offer. 

     This back-and-forth negotiating process can take hours or days but will conclude when there is an agreement on all terms -or-  terminate if a meeting of the minds is not possible.

     Once the contract is accepted,  it may be placed in the hands of attorneys on both sides for further scrutiny and legal acceptance.  If the buyer and seller feel comfortable with the agreement, they may proceed without an attorney.

     Remember,  a higher sales price is not always the most important factor.  It is at this time that the buyer will order his/her Home Inspections.  Home inspections are not required, however they are strongly recommended.

Home Inspection Process

     The Home Inspection process can reveal conditions that require additional negotiations by your Agent and or Attorney on your behalf.   It is possible that you will request repair or replacement relative to some functional unit,  i.e.,  furnace malfunction, roof leak, water in basement .   If the Seller and the Buyer cannot agree or compromise on any significant item revealed via this process, it is possible that the contract can be terminated by either party.  Again, your Agent and Attorney will work together with you to negotiate the best possible resolution.

Closing Preparation  

     Your Agent will coordinate a time for the final 'walk-through'.   This final view of the house is to insure that all major systems are still in working order and that the house has been maintained in satisfactory condition since you made your offer.

     It is your responsibility to acquire proper Home Insurance and to have a policy with you for the closing.  Your Agent can assist with getting you quotes but it is your responsibility to make your own final arrangement.

     And finally,  it is also your responsibility to make arrangements to transfer all relative utilities to your name effective on closing day.   Your Agent will assist you with contacts and telephone numbers of all utility companies.

Closing 

     Your mortgage representative and attorney will work closely with you to insure that all moneys and conditions of the contract are met in a timely fashion.  It is at the 'closing' that title and deed actually change hands and you,  the new owner, takes possession.