Step 1: Before the House Hunt
The buying process involves several steps, from finding a realtor to making an offer to closing the deal. Whether you're a first-time or experienced buyer, you'll find an array of information in this section that will assist you on your way to realizing your goal of homeownership. Keep in mind that every real estate transaction is different but the home-buying process ultimately shares the same steps.
Before you dive into your home buying venture, there are some important steps to take, like calculating your finances to figure out how much money you have for a down payment and closing costs and what sales range you can afford. Check out the residential tab on the website to access some easy to use calculators.
Given the nature of the decision you are making, choosing the right players in the transaction is critical. The two most important players to assist you in this process are your real estate agent and your mortgage broker, to ensure that you get the best home at the best price, while making sure that you can borrow the money you’ll need to make the deal happen.
Probably the most important person you will work with on the real estate transaction is your agent. A good real estate agent should be there with you every step of the way, acting as your advocate, making sure that you find the right home and getting the best price.
CHOOSING A LENDER & GETTING PRE-APPROVED
The other key player in the real estate transaction is your mortgage broker, or your lender. People often confuse these terms. The mortgage broker acts as a middleman between banks/mortgage lenders and borrowers on the wholesale end to secure financing for homeowners. The lender, or bank, works directly with the homeowner to provide financing on the retail level.
Your mortgage broker or lender will discuss your goals for financing and your available funds in order to determine the best type of loan for you. Your mortgage broker will also run a credit check, look at your pay stubs and asset statements and debt-to-income ratio. More importantly, he or she will help you determine how much you can borrow, which has a lot to do with how much house you can buy. He or she will indicate what your monthly payment will be at various financing amounts in order to help you figure out what you can afford and how much you’re comfortable financing. In determining a target sales price range, most buyers are most concerned about their monthly loan payment. It’s important to obtain this pre-approval prior to house hunting so that you know what you can afford. In addition, you will have to submit this pre-approval with an offer as proof to the sellers that you can afford the purchase.
MAKING A PLAN
Owning a home is part of the American dream. Now is the time to meet to discuss a game plan and approach to your home-buying dream. We assess our clients needs by asking lots of questions, for example:
Why are you buying?
When do you need to close?
What are your goals in purchasing a home?
How long do you plan to stay in your new home?
Do you have children or do you plan to have children in the future?
Are schools important?
What are you home likes and dislikes?
Most likely, your home purchase is the largest purchase you’ll ever make. With this in mind, you want a skilled real state team who can support your specific needs, negotiate the agreement, advocate on your behalf, guide you in the home-buying steps and facilitate the process so that it’s a seamless transaction.
Besides your realtor (WPM) and your mortgage broker, there are three other major players in the transaction: the property inspector, the escrow officer and the insurance agent. Together, all of these people will help you make the dream of home ownership a reality.