Buy Your New Home
Buying a home is an exciting and complex adventure. It can also be a very time-consuming and costly one if you're not familiar with all aspects of the process, and don't have all the best information and resources at hand.
One of my specialties is representing the best interests of Austin and surrounding area buyers throughout their home buying process. My comprehensive, high-quality services can save you time and money, as well as make the experience more enjoyable and less stressful.
If you're like most people, buying a home is the biggest investment you will ever make. So whether you're buying a starter home, your dream home or an investment property, why not take advantage of my experience as a local market expert for Austin metro area to make the most informed decisions you can, every step of the way?
Recommended Buying Procedure
Step 1. Get Pre-Approved
Important to get either Pre-Approved or Pre-Qualified. In this step, you find out what you quality for based on your credit score, income, employment, and assets. Prior to getting loan approval it is important that the buyer has in mind what amount of a mortgage payment they can personally afford. Having a high credit score sometimes may allow you to get a larger loan than you can comfortability afford. If this true, it is important you set your own limits concerning the amount of mortgage you are willing to pay.
The type of loan you should get probably depends on several factors: amount of down payment, number of years you plan on living in the home, where your job is going take you in the future, how soon will you want to upgrade, and possibility whether you want to escrow taxes and insurance, etc. Most likely your home will be the largest investment you will make in your life, therefore, give it some serious thought. When purchasing a home you need to know how to increase your equity. By taking advantage of equity you can save hundreds or even thousands of dollars by properly using equity. Remember, it is your responsibility to learn and understand equity, because no one else is going to do it for you. Feel free to ask me about it.
Step 2. Find a Home
Once you have been pre-approved, you will know how much house you can afford. Now you want to select a location that will give the greatest potential appreciation. Appreciation is defined as rise in value. When you sell or refinance your property becomes real money to you. The real money is a result of the increase equity from the gain on the property.
As a realtor, I can provide you a private web site through the use of E-mail as the notification delivery tool. This site will update you immediately of any available homes. In addition, you have the capability to create your own separate home searches on this site. By having immediate notification of available properties, you are afforded the following advantages: potential ability to make the first offer, and greater possibility of preventing yourself getting into a multiple offer environment. If a buyer is forced into a multiple offer environment, this tends to increase the sales price for the buyer.
As a buyer, you should focus on finding the right home for you and your family while enjoying the process. I have the knowledge and experience to give you a full range of services and taking care of the details so nothing is overlooked. I do this so you can focus on other priorities in your life.
Step 3. Sign a Contract
After working together, you have found a home and wish to make an offer. At this time, I will make you aware of recent homes sold for in the neighborhood. This will insure you are making the proper offer for the property. Then I will put together a written contract and deliver it to the seller. At this point, negotiations will begin, the seller may counter offer. Counter offer means the seller has made changes to the initial offer and now we must either accept the seller's counter or make a counter offer back to the seller. This process will continue until both parties agree on the terms of the contract.
Buyer needs to remember the contract must be written in order to be legal and binding. Verbal agreements are not enforceable in real estate. If a verbal agreement exist and either party changes their mind, nothing can be done about it.
Most real estate contracts include the following conditions or provisions:
1. Appraised value must be equal or greater than the loan amount.
2. Provision that allows time for inspection and negotiation of
repairs. The period is known as the Option Period in Texas.
3. Provision that provides a Home Warranty to the Buyer.
Step 4. Finalize the Loan
After the contract has been finalized by both parties, the contract is delivered to a title company and the buyer's lender. The lender will order an appraisal of the property and finalize the loan. This process normally starts after the Option Period has ended.
Step 5. Inspections and Homeowners Insurance Quote
With the contract delivered to both title company and lender, any inspections will be scheduled. The buyer will select a home inspector based on their personal choice. Following is a list of the main inspections:
1. General inspection: This inspection is not required, but is highly
recommended to every buyer. This inspection will undercover
minor and major defects within the home.
2. Appraisal: This inspection is normally required by the lender. This
inspection determines the market value of the property. The market
value must be equal to greater than loan amount approved for the
3. Pest Inspection: This inspection is not required, but is highly
recommended to every buyer. This inspection is for Wood
Destroying Insects such as termites, fungus, etc.
4. Special Inspections: These inspections are not required, but are
highly recommended if there are major construction problems
with the home.
Also during the Option Period, I will request you get a Homeowners Insurance Quote for the property. This is necessary to insure proper insurance coverage at a reasonable rate. Doing this during the Option Period allows you to break the contract, and retain your earnest money if the insurance quote is not acceptable.
Step 6. Post-Inspection
Immediately after inspection, if necessary, I will negotiate with the seller any repair adjustment. This means, I will submit a written request for repairs, or a financial adjustment for repairs to be credited to the buyer at closing.
Concerning appraisal, most likely the new appraisal value will satisfy lender requirements. If there is a disagreement, then supporting evidence will need to be found and/or seek other professional advice. If this does not meet lender requirements, then there needs to be negotiations between seller and buyer.
Step 7. Closing
The closing date is normally defined within the contract. Providing everything goes well, the buyer delivers the financial instrument (cashier's check or funds wired), and all inspection items have been satisfied, then you are ready for closing. The closing is normally held at a title company or attorney's office. This is where both the buyer and seller will sign the appropriate documents for the transaction. Once this has been complete, and the proceeds have been funded, the buyer will receive the keys to their new home. Congratulations!