first time home buyer

You have come this far, you have determined it is the right time for you to buy a home. As a potential First Time Home Buyer, here is a short list of things to think about while creating the vision of your new dream home:

1) Decide on a community. Determine which neighborhood will best fit your needs for your family, for your commute and for your sanity! As your Agent of Possibility you can come to me for info on local school districts, community resources, affordability and tax liability.

2) What to think about when looking at homes. Is the home big enough for your present and future needs? Does it have enough bedrooms and bathrooms? How is the floor plan? Does your furniture fit? Is the yard big enough for the dog, the kids AND the new pool? Is the home structurally sound? What are the maintenance costs and will there be anything you need to replace in the near future? You may want to keep a list or copies of the MLS listings on the homes you have looked at so you can go back and review your comments about the home.

3) You found your home! How do you make an offer? As your Agent of Possibility you and I will put together an offer. We will discuss what you need to know about an earnest money deposit, the legal description of the property, how much to offer, how long the offer is good for and the proposed move in date. We will determine your financing needs and can also assist you in picking a lender. It is best for you to submit a pre-qualification letter with your offer.  You will also need an insurance agent for homeowners insurance. Consider using the agent you have your cars insured through, as many times this will provide discounts for both home and vehicles!

4) Now what? As your Agent of Possibility will help you in the next phases of the transaction. You will want to schedule a home inspection. Please check out my post on the Importance of a Home Inspection. An Inspector is hired to check the safety and soundness of your Dream Home. The inspector will take a look at the plumbing, electrical, heating and air, windows, doors, structure, water heater and roof. They will provide you a report with all of their findings. Be sure and hire an experienced and qualified home inspector. It is a good idea that you are there for the inspection, as you may have questions answered at this time. This may not be a job for Grandpa Joe, unless he is a building inspector! Referrals are available, just ask! There will also be a termite inspection done on the property. This inspection is usually paid for by the seller and provided to the buyer and buyers agent once complete. If there is any work that needs to be completed, your Agent of Possibility will be able to assist you in asking for the repairs to be completed.

5) Loan Processing. Since you received a pre-qualification letter, your lender should have most of the things needed to get your loan approved. The loan officer will work with you and the loan processor to complete the package to submit for approval. The lender will need to order an appraisal on the property; this is not something you need to be present for. Once this is received and all escrow and title documentation has been provided to the lender, they should be able to provide final loan approval! One step closer to closing!

6) The final walk through! Once you have reached this point, you are days away from owning your Dream Home! This step is for you to walk through the home one final time to ensure all is as remembered and that all the appliances or doors have not walked out since your last visit! Be sure and mention any concerns to your Agent of Possibility to have them resolved prior to closing.

7) Signing of documents. Once you have final loan approval, the lender will send the closing documents to the escrow company for your signatures. These documents are important, as they spell out the terms and conditions of your new loan. It is important you read and understand these documents, as you are making a commitment to make payments on a property for 30 years! Your Agent of Possibility will accompany you to the signing, and will be there to answer any questions you may have. Be sure and get copies of all documents you have signed, most importantly the note, deed of trust, truth in lending and HUD I Settlement Statement. If you have any questions or concerns, now is the time to address them!

Closing Day! Once the documents are signed, they are returned to the lender for their review and once the lender has approved the Settlement Statement, verified signatures and confirm the property is insured, they will determine the day they will wire the funds to the title company. The day the money is wired, the Deed of Trust will be sent down to the county recorders office for recording with public record. Most times the document will record the same day, but there are instances that it may be the day following the funds being wired. Once the escrow company has confirmation of recording, they will notify your Agent of Possibility, cut checks to the seller and the keys to your new home are on the way to your key ring!

CONGRATULATIONS! YOU ARE NOW THE PROUD OWNER OF YOUR DREAM HOME!