How To Buy Right!
Buying a home or vacation property can be one of the most exciting and rewarding things you'll ever do, or it can be one of the biggest nightmares you will ever go through.
How you experience the buying process depend on how well prepared you are.
You probably know of someone or have heard of someone who has bought and sold homes many times over. They seem to fly through the entire process with the skill of a surgeon. Top this with the fact they always seem to get the best deal in-town.
Now you too can have the skills that took smart buyers years to discover. Industry Experts have prepared this "FREE SPECIAL REPORT" which will walk you through the process, helping you avoid buyer pitfalls. After reading this valuable information you may find you friends talking about you as the someone with the know-how.
"If you follow these steps you'll be in full control and know exactly
where you are and what is expected in the process."
Buying a home can be one of the most exciting and rewarding things
you'll ever do, or it can be one of the biggest nightmares
you will ever go through.
How you experience the buying process depends on how well
prepared you are. This Industry Report will clear up a lot of confusion
you may have.
1. SELECTING A REALTOR
This is probably the most important step in the process.
You will be in a partnership. You will be confiding in them on a business level
and often on a personal level. They will be the people dealing with any problems
that crop up along the way.
They are the key to your finding your "Dream Home".
Be selective, look for someone you feel comfortable with.
Chances are you'll be working with a "Top Producer" who will be a busy agent.
If they are trying to do everything themselves you may feel stranded.
All the more reason a "Team" works better. You'll always have someone
looking after you and your questions.
2. MEETING WITH YOUR AGENT FOR A CONSULTATION
This when you and your agent prepare each other for exactly what to expect
along the way. The following points should be covered
and fully understood during this meeting.
Exactly what your needs are (number of baths, bedrooms, etc.),
in which area you're looking, what price range you are comfortable with,
and what your time line is. It generally takes 30 to 45 days
from contract to settlement.
How often you are available to look and what you expect from your agent
in terms of availability and communications (E-mail, phone updates
either daily or weekly).
Your agent should explain financing options and provide references for lenders.
They can explain the differences between various loan programs,
but it's generally better to rely upon the lenders to discuss
mortgage options and programs.
Your agent should provide you with copies of the paperwork
you will be expected to sign during the process and explain what each form is for.
Your agent should explain buyer agency v/s seller's representation.
3. SELECTING THE MORTGAGE LENDER
Most people, when selecting a lender, call the various institutions to check out the lowest rates. The mortgage broker or loans officer is just as important - if not more than the institution. Most institutions offer the same programs, but each will usually specialize in "niche" programs.
For example, some lenders specialize in low down payments, self employed borrowers, or marginal credit borrowers. Your agent will know how to direct you.
4. MEET WITH YOUR LENDER
Usually this happens in conjunction with Step 2. You will want to meet with the lender as soon as possible in the process, to review and ensure that you understand every aspect of the loan process. One of the best strategies we can offer is to obtain "Pre-Approval". This one item can save you thousand of dollars when making the offer to purchase. Most lenders can have you approved for a mortgage even before you have selected a home. In fact I insist that you be pre-approved, so we're not wasting time looking at property that you'd never qualify for, or the lender wouldn't finance.
5. TIME TO GO LOOKING FOR THE DREAM HOME
This is the fun part. It is important to limit the number of homes you're looking at in a day. If you look at too many homes, they begin to run together, and you can't remember one from another. It's a good idea to use a checklist form to help you track the properties you have seen. Remember, communication with your agent is crucial. It's important to let your agent know which houses you like and why, as well as which houses you don't like and why.
6. SELECT A HOME
Once you've narrowed your search down to one or two homes that you really like, your agent will do whatever research necessary to help you make your decision, but the decision will ultimately be yours. And surprisingly enough, it's going to be a pretty easy decision to make. Once you've selected one home to focus on, your agent may do a comparative market analysis on that property. This involves determining "fair market value" by looking at what other buyers were willing to pay for properties similar to yours in the same neighborhood or area.
7. MAKING AN OFFER AND NEGOTIATION
You already know what fair market value is. Now you have to decide what price you will offer. When negotiating with any seller, it's best to remember not to take anything personally. Also, try to put yourself in the seller's shoes. A good agent should be able to give you tons of advice about how to structure your offer. Once your offer has been presented, the seller will either accept your offer outright, reject your offer outright, or counter your offer. The counter process can go back and forth many times. It's important for all parties to keep their cool and focus on the goal.
8. GET INSPECTIONS & REMOVE CONTINGENCIES
If, as part of your offer, you asked for time to be allowed to have inspections conducted on the property there will be deadlines to meet. Offers can be contingent upon loan approval, inspections, the sale of property, and many other conditions. It is important that all deadlines be met and that all contingencies are removed exactly the way the contract describes.
9. SELECT AN ATTORNEY
If you don't know an attorney your agent can recommend several. The attorney will take care of ordering a survey, title insurance, title search, and drawing up all the documentation. Most people don't know that the attorney doesn\'t actually represent the buyer, they represent the sales contract. Their job is to make sure that all the terms are met.
Most sales contracts will give the buyer the right to one presettlement inspection. This is your last chance to find any problems and have the seller correct them. Most contracts read that all electrical systems. plumbing, appliances, heating, and air conditioning need to be in working order at the time of settlement. These are the items you are checking for at walk-through. You are also checking for any other items the seller previously agreed to fix or replace. If anything is found to be defective or missing, the seller can remedy the problem prior to settlement.
11. CLOSING ON YOUR HOME
This is the day you "sign your life away," as most clients say. Not really. You will be signing all of the loan documentation, which can seem never-ending. Your lawyer conducting the settlement should be able to explain every document to you in a satisfactory manner.
12. MOVING DAY
This is the last and probably the hardest step in the home-buying process. A little bit of planning and forethought, though, will make for a much smoother move.
You will want to make arrangements with a moving company as soon as you can. Call at least two in order to get competitive quotes. They will usually ask to come to you home to get an idea of how much they will be moving and the distance they will need to travel.
Be sure to change your address with the post office, your banks, and any creditors at least 30 days in advance. To avoid late payments, it's good idea to actually call and verify receipt of the address change whenever possible. Call to order your utility hook-ups approximately 10 days prior to your move
We hope you enjoyed this feature. If we can be of any further assistance
to you, your family or friends, when buying or selling in the Kawartha Lakes,
please let us know.