For Buyers

Buying a home involves making the biggest financial decisions you will probably ever need to make in your lifetime. But as long as you plan carefully and know what you want, the process need not be complicated or stressful. Here are some tips to help you out.

Choosing a Real Estate Agent

Navigating the complex real estate market can seem like a daunting task for those not familiar with it, but it can be a rewarding experience when you work with a real estate professional. The right agent will provide you with access to property listings that may not be available online, process the necessary paperwork, and guide you in making informed decisions, as well as help you steer clear of potential disasters.

In general, select a real estate agent who has lots of experience in successful transactions, is familiar with the areas where you want to live, has knowledge of the latest market trends, and promptly replies to your calls and inquiries. A good agent is one that you feel comfortable with, and more importantly, listens attentively to all your concerns.

Preparing to Buy

Before looking around, it’s recommended to create a green file, as you’ll need this in order to secure financing. Your green file will contain your bank accounts, statements, investments, credit cards, loans, tax returns, insurance, property leases, and other important financial documents. Your credit score will also have an impact on the type of property you can buy and at what price, so you should check your credit rating with a lending institution to find out what you can afford.

Loans and Mortgages

Study the different kinds of loans available, in order to find out which option is the best one for you depending on your financial situation. Compare each mortgage type, carefully considering their pros and cons; your agent can help you get these questions answered, but it’s also a good idea to consult with your accountant or other financial consultant.

Get Pre-approved

A pre-approval letter from a lender will not only help you search for the home you want faster, since you know exactly how much you can afford, but it also signals to sellers that you’re a serious buyer, because you already have financing lined up.

Know the Neighborhoods

Get to know more about the neighborhoods that you plan to live in; do some research online about your future home’s proximity to important amenities such as schools, shopping, or access to main roads. Take a drive to the area to see for yourself if the community is right for you.

Looking for Your Home

You can save hours and even days of searching for homes by simply focusing on the home with the features you need. By making a list of what you really want, you can narrow down your choices and find homes more efficiently.

Make an Offer and Negotiate

When you’ve picked out the home you really want, your real estate agent will help you make an offer that the seller will consider. Be prepared for things like counteroffers or even rejections; however, keep in mind that negotiations are part of the process and having a good agent on your side will ensure that they can watch out for your best interests.

Inspections and Escrow

Home inspections are essential, so it’s important to do them as soon as possible to find out if there are problems with the house early on. This allows for, enough time to renegotiate or even cancel. Once you and the seller sign the purchase agreement, the escrow process begins. From here, your agent will make sure that everything proceeds smoothly and on time.

Closing

The escrow period ends when your loan has been successfully processed, the funds released to the seller, and the deed to the property is now in your name. On closing day, all the required papers are signed, as you and the seller complete the deal, and the keys to your new home are turned over to you.

Congratulations on buying your new home!