Eight Steps for Buyers

1. Decide to buy. Although there are many good reasons for you to buy a home, wealth building ranks among the top of the list. I call home ownership the best “accidental investment” most people ever make. But, I believe when it is done right, home ownership becomes an “intentional investment” that lays the foundation for a life of financial security and personal choice. There are solid financial reasons to support your decision to buy a home, and, among these, equity buildup, value appreciation, and tax benefits stand out.

2. Hire your agent. The typical real estate transaction involves at least two dozen separate individuals – insurance assessors, mortgage brokers and underwriters, inspectors, appraisers, escrow officers, buyer’s agents, seller’s agents, bankers, title researchers, and a number of other individuals whose actions and decisions have to be orchestrated in order to perform in harmony and get a home sale closed. It is my responsibility to expertly coordinate all the professionals involved in your home purchase and to act as the advocate for you and your interests throughout.

3. Secure financing. While you may find the thought of home ownership thrilling, the thought of taking on a mortgage may be downright chilling. Many first-time buyers start out confused about the process or nervous about making such a large financial commitment.

From start to finish, you will follow a six-step, easy-to-understand process to securing the financing for your first home.
Choose a loan officer (or mortgage specialist).
Make a loan application and get preapproved.
Determine what you want to pay and select a loan option.
Submit to the lender an accepted purchase offer contract.
Get an appraisal and title commitment.
Obtain funding at closing.

4. Find your home. You may think that shopping for homes starts with jumping in the car and driving all over town. And it’s true that hopping in the car to go look is probably the most exciting part of the home-buying process. However, driving around is fun for only so long – if weeks go by without finding what you’re looking for, the fun can fade pretty fast. That’s why I say that looking for your home begins with carefully assessing your values, wants, and needs, both for the short and long terms.

Questions to ask yourself:
What do I want my home to be close to?
How much space do I need and why?
Which is more critical: location or size?
Would I be interested in a fixer-upper?
How important is home value appreciation?
Is neighborhood stability and priority?
Would I be interested in a condo?
Would I be interested in new home construction?
What features and amenities do I want?
Which do I really need?

5. Make an offer. When searching for your dream home, you were just that – a dreamer. Now that you’re writing an offer, you need to be a businessperson. You need to approach this process with a cool head and a realistic perspective of your market. The three basic components of an offer are price, terms, and contingencies.

Price – the right price to offer must fairly reflect the true market value of the home you want to buy. My research will guide this decision.

Terms – the other financial and timing factors that will be included in the offer. Terms fall under six basic categories in a real estate offer:

Schedule – a schedule of events that has to happen before closing.
Conveyances – the items that stay with the house when the sellers leave.
Commission – the real estate commission or fee, for both the agent who works with the seller and the agents who works with the buyer.
Closing costs – it’s standard for buyers to pay their closing costs, but if you want to roll the costs into the loan, you need to write that into the contract.
Home warranty – this covers repairs or replacement of appliances and major systems. You may ask the seller to pay for this.
Earnest money – this protects the sellers from the possibility of your unexpectedly pulling of the deal and makes a statement about the seriousness of your offer.

6. Perform due diligence. Unlike most major purchases, once you buy a home, you can’t return it if something breaks or doesn’t quite work like it’s supposed to. That’s why home owner’s insurance and property inspections are so important. A home owner’s insurance policy protects you in two ways: 1) Against loss or damage to the property itself. 2) Liability in case someone sustains an injury while on your property.

The property inspection exposes the secret issues a home might hide so you know exactly what you’re getting into before you sign your closing papers. Your major concern is structural damage, so don’t sweat the small stuff. Things that are easily fixed can be overlooked.If you have a big problem show up in your inspection report, you should bring in a specialist. If the worst-case scenario turns out to be true, you might want to walk away from the purchase.

7. Close. The final stage of the home buying process is the lender’s confirmation of the home’s value and legal statue, and your continued credit-worthiness. This entails a survey, appraisal, title search, and a final check of your credit and finance. I will keep you posted on how each if progressing, but your work is pretty much done.

You just have a few preclosing responsibilities:

Stay in control of your finances.
Return all phone calls and paperwork promptly.
Communicate with me at least once a week.
Several days before closing, confirm with me that all your documentation is in place and in order.
Obtain certified funds for closing.
Conduct a final walk-through.

On closing day, with the guidance of a settlement agent and myself, you’ll sign documents that do the following:

Finalize your mortgage.
Pay the seller.
Pay your closing costs.
Transfer the title from the seller to you.
Make arrangements to legally record the transaction as a public record.
As long as you have clear expectations and follow directions, closing should be a momentous conclusion to your home-searching process and commencement of your home-owning experience.

8. Protect your investment. Throughout the course of your home-buying experience, we’ll probably get to know each other fairly well. There’s no reason to throw all that trust and rapport out the window just because the deal has closed. I’d like to keep in touch.

Even after you close on your house, I can still help you:

Handle your first tax return as a home owner.
Find contractors to help with home maintenance or remodeling.
Help your friends find homes.
Keep track of your home’s current market value.
Attention to you home’s maintenance needs is essential to protecting the long-term value of your investment.
Home maintenance falls into two categories:
Keeping it clean: Perform routine maintenance on your home’s systems, depending on their age and style.
Keeping an eye on it: Watch for signs of leaks, damage, and wear. Fixing small problems early can save you big money later.

I’ve spent thirty years in real estate – nineteen of those in brokerage management. It would be hard to imagine a problem or issue I haven’t had to resolve during my career.
What does that mean to you?
When hiring a real estate professional to handle the most important investment of your life, shouldn’t knowledge, experience, and a proven track record be at the top of your list of priorities?

If the answer is yes, contact me today:

Cell: 301-332-9415
Office: 240-252-5833
Direct: 301-349-7937
dale@beltwaytothebay.com