Welcome New Home Buyer!

As a buyer, it’s crucial to work with someone you trust and feel comfortable with during one of the most significant purchases of your life. Approach this process as an interview to find the best candidate for your needs. A consultation is your chance to ask questions and gain a thorough understanding of the process, ensuring that you make informed decisions every step of the way.

The pre-approval process is a critical step in your home-buying journey. By completing an application with a lender, you provide them with a clear picture of your financial situation, enabling them to recommend programs that perfectly match your needs and budget. A skilled lender will collaborate with you to pinpoint the best options available. Securing pre-approval is essential for viewing homes and making competitive offers. This video answers your most pressing questions about down payments and closing costs.

*Cash buyers will require proof of funds. e.g., bank statement, IRA statement, etc. 

Great! Now that you've hired your agent and secured your pre-approval, it’s time for the fun part: seeing houses in person! This process goes beyond simply opening doors; it’s essential to stay grounded and not get swept away by the HGTV experience. Remember to focus on what you actually need in a home while discovering features you didn’t even know you needed. Also, be cautious of getting catfished by those appealing pictures you see online! You got this!

Negotiating an offer can be a challenging and emotional experience for some, while others take a more data-driven approach. For many, it involves a combination of both aspects. The key is to work together to create terms that benefit both parties. A skilled agent will develop a strategy with you and help you present your most compelling offer. 

*Consider whether this is your only offer or if you have multiple options available. Clearly identify your top priorities and recognize where you can be flexible. 

Congratulations on successfully negotiating a win-win deal with the seller—your offer (contract) has been accepted! Now, you are officially on the countdown to closing. This stage may bring a mix of emotions, but rest assured, it’s an exciting time ahead. Each agent will have a different process. Because of our extensive knowledge of the back end of a transaction, we have added extra care and detail to this part of the process. You'll receive regular updates on where you are, the immediate next steps, and what's next, keeping you informed and confident as you move forward.

A due diligence period is the time allowed for conducting property inspections and, for condominiums, reviewing association documents such as the master deed and bylaws. This period typically ranges from 1 to 10 days and is determined during negotiations, varying based on market conditions.

In a highly competitive seller's market, the due diligence period usually lasts between 3 to 5 days. In a stable market, it typically spans 5 to 7 days, while in a buyer's market, it can extend from 7 to 10 days.

During the due diligence period, you will work with your agent to determine the best strategy. The most common strategies are repairs, seller credits (concessions), accepting as-is, or even opting to release yourself from the contract. This is a negotiable item, and nothing is guaranteed since it depends on your findings, your contract terms, and the prevailing market conditions. AGREED-upon terms MUST be in writing. 

Homeowners insurance protects the house and its contents from damage, theft, or disasters like fire or storms. Mortgage lenders require it to protect their investment in the property. (Please consult a professional for more details. )

To streamline this process, it is advisable to shop around and compare rates during the inspection contingency period. If you encounter any issues—like a high rate that could significantly impact your monthly expenses—this proactive approach will allow you to address them before finalizing the agreement. While you’re not required to choose an insurance provider at this stage, obtaining quotes will help you minimize any surprises later on and be comfortable about your payment. These steps will empower you and boost your confidence in the overall process. 

*Cash buyers do not need homeowners insurance, but it's highly recommended.

The purpose of an appraisal is to estimate the value of a property to make sure it’s worth the amount you’re borrowing for a mortgage. It helps the lender confirm that the property is a good investment and that they can recover their money if you can’t repay the loan. 

The appraiser is responsible for reviewing data on properties that have sold comparably to yours. The appraiser will focus on the following criteria: properties within 1 mile that sold in the last year (the more recent, the better) and those similar in square footage, condition, and style. For example, the appraiser will consider other ranch-style homes before a colonial if your property is a ranch-style home. Rural areas will expand their search further out than a mile. 

*You do not attend the appraisal appointment. The lender will handle this process and inform you of the results. 

As a buyer, you must meet certain conditions for the lender to issue a mortgage. Your lender's underwriting team will determine these conditions. Examples may include employment verification and updated financial documents. It is important to act quickly, as any requested information must be submitted within 24 business hours of the request date.

**IMPORTANT** They will check your credit score again. 

DO NOT make any LARGE purchases. 

Once the underwriter has approved all your required conditions, you’ll get the fantastic news: your loan is CLEAR TO CLOSE! This is a great step forward, and it means we can finally move ahead with closing. We’ll start scheduling as soon as the lender and title company confirm everything is in order. Then we can plan your final walkthrough and the closing. 

Closing day is such an exciting time! Don’t forget to bring your driver’s license with you. It’s a great idea to check in with your lender about whether you’ll need a check or a wire transfer for the closing costs. Also, be sure to set up your utilities ahead of time. Just a heads up: if you have occupancy days, you'll wait to transfer the utilities until the big day when you get your keys. Congratulations—you're almost there!