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Your Home Buying Process
The Right Home, Right Fit and the Perfect Location
Bob Farrar Realtor 559-349-6754
Step 1: Start Your Research Early
As soon as you can, start reading Web sites, newspapers, and magazines that have real estate listings. Make a note of particular homes you are interested in and see how long they stay on the market. Also, note any changes in asking prices and days on the market. This will give you a sense of the housing trends in specific areas. Watch the zip code areas that you see yourself living and raising your family in! Note: Get my MLS App from Bob Farrar, Realtor
Step 2: Determine How Much House You Can Afford
Lenders generally recommend that people look for homes that cost no more than three to five times their annual household income if the home buyers plan to make a 20% is the down payment (5% is the minimum) and have a moderate amount of other debt. FHA loans only require a 3.5% but come with Private Mortgage Insurance added to your monthly payment.
You should make your purchase mortgage determination based on your own financial situation. One of my exclusive services is that I can calculate the affordability to see how much house you can afford. But it’s my advice that you are very comfortable with the monthly payment we settle on!
To help you save for your down payment, ask your bank if they have an Auto Savers Plan which makes it easy to put aside money each month!
Step 3: Get Pre-approved for Your Mortgage
Before you start looking for a home, you will need to know how much you can actually spend. To get prequalified, you just need to provide some financial information to your loan officer, such as your income and the amount of savings and investments you have. You loan officer will review this information and tell you how much he/she can lend you. This will tell you the price range of the homes you should be looking at. Items that you will need to be preapproved for your mortgage, involve providing your financial documents (W-2 statements, Tax returns for two years, paycheck stubs for one full month, all bank and savings accounts statements all pages).
Step 4: You have found the Right Real Estate Agent
Real estate agents are important partners when you're buying or selling a home. As your Real Estate agent I can provide you with helpful information on homes and neighborhoods that are not easily accessible to the public. My knowledge of the home buying process, negotiating skills, and familiarity with the area you want to live in can be extremely valuable. And best of all, it doesn't cost you anything to use me as your agent I’m compensated from the commission paid by the seller of the house. Check out www.bobfarrarsellsrealestate.com
Step 5: Shop for Your Home and Make an Offer
With your Preapproval in hand we can start touring homes in your price range. It might be helpful to take notes on all the homes you visit (I provide all my clients with a detailed check list). You will see a lot of houses! It can be hard to remember everything about them, so you might want to take pictures or video to help you remember each home.
Make sure to check out the little details of each house. For example:
It's also important to evaluate the neighborhood and make a note of things such as:
Take as much time as you need to find the right home. Then, work with me as your real estate agent to negotiate a fair offer based on the value of comparable homes in the same neighborhood. Once you and the seller have reached agreement on a price, the house will go into escrow, which is the period of time it takes to complete all of the remaining steps in the home buying process.
Step 6: Time to Change the Loan to “A Real Deal”!
Loan Officers have a wide range of competitively priced loan programs and a reputation for exceptional customer service. You will have many questions when you are purchasing a home, and having one of our experienced, responsive Loan officers will assist you in making the process much easier.
Every home buyer has their own priorities when choosing a mortgage. Some are interested in keeping their monthly payments as low as possible. Others are interested in making sure that their monthly payments never increase. And still others pick a loan based on the knowledge they will be moving again in just a few years.
Step 7: Get a Home Inspection
Typically, purchase offers are contingent on a home inspection of the property to check for signs of structural damage or things that may need fixing. As your real estate agent I will help you arrange to have this inspection conducted within a few days of your offer being accepted by the seller. This contingency protects you by giving you a chance to renegotiate your offer or withdraw it without penalty if the inspection reveals significant material damage.
Both you and the seller will receive a report on the home inspector's findings. You can then decide if you want to ask the seller to fix anything on the property before closing the sale. Before the sale closes, you will have a walk-through of the house, which gives you the chance to confirm that any agreed-upon repairs have been made.
Step 8: Have the Home Appraised
Your Lender will arrange for an appraiser to provide an independent estimate of the value of the house you are buying. The appraiser is a member of a third party company and is not directly associated with the Lender your using. The appraisal will let all the parties involved know that you are paying a fair price for the home. Note: Lenders do not lend over the appraisal amount.
Step 9: Coordinate the Paperwork
As you can imagine, there is a lot of paperwork involved in buying a house. Real Estate professionals will arrange for a title company to handle all of the paperwork and make sure that the seller is the rightful owner of the house you are buying.
Step 10: Close the Sale
At closing, you will sign all of the paperwork required to complete the purchase, including your loan documents. It typically takes a couple of days for your loan to be funded after the paperwork is returned to the Lender. Then the Escrow office can record with the County Recorder’s office allowing the check is delivered to the seller, you are ready to move into your new home!