The Home Buying Process, Part 2

In all honesty there’s no easy way to guess how long you’ll be searching for a home. Buyers have been known to look at just a few. It’s entirely possible you might not find anything and decide to put a halt on purchasing something until you can be satisfied.  A benefit of searching for homes online is that you can easily screen out definite “no’s” without wasting your time.

Nerveless , don’t be like those irritating buyers on “House Hunters”who gripe constantly about paint colors and light fixtures. Keep in mind you’re buying a home -you can manage some minor cosmetic improvements.

Making An Offer

Once you’ve found the “one”,it’s time to get the ball rolling with an offer. Having a pre-approval makes a great first impression on the seller.

The Biggest outcome about offers is:EVERYTHING IS NEGOTIABLE. The price, the terms (such as the seller making repairs of paying HOA fees), even the seller’s lazy boy chair, etc. are all up for discussion. Offers are contingent on the satisfaction of some event, which could be securing financing, selling the home you already have, having the home pass inspection, or the completion of an appraisal.

But what you really want to know is how much is this going to cost me.  This is where having a great agent comes in handy. There are allot of variables that go into making an offer. Considering the overall market is a good place to start. Your agent’s job is to pull comparable sales, and look at asking to selling price ratios and reviewing the listing history info of the property regarding the length of time it’s been on the market.  Still, the seller’s own situation should influence what you’re willing to offer as well .

Once the offer is submitted, the seller has the option of accepting it or making a counteroffer. Expect some kind of earnest money(1%  at least) to indicate that you’re serious, especially if there is a lot of interest in the house. After some back and forth negotiating you come to an agreement that works for everybody. Keeping a poker face is essential in negotiating. . Don’t let your emotions show.  

Closing

After your offer is accepted, closing will typically take place in 30-45 days. The cast of characters  in  a closing includes you (the buyer), the seller, real estate agents, loan officers, and title agents.Ultimately, the title is being transferred from buyer to seller, so there will be a slew of documents to go over.

What’s required of you is proof of homeowner’s insurance, documents required by the lender to complete your loan application, and funds for closing costs, which are estimated by your lender in a  Good Faith Estimate of Closing Cost. The lender may also request a termite letter (those boogers!) before funding your loan. Title insurance is a must - better safe than sorry. Also at closing, an escrow account will be initiated, which is assurance to the lender that the home’s insurance, taxes, and possibly private mortgage insurance will be paid.