Information for BuyersUpper Michigan Buyer Real Estate information
Buyer's Guide: Steps to Buying a Home |
| 1. Hire a real estate professional. The first step is to select a professional to help you find your dream home and fine-tune your financial expectations. Working with a buyer agent is worth consideration since he or she is legally responsible for representing the buyer’s interest in a real estate transaction. Before making a decision, however, have a Realtor® explain the pros and cons of using a buyer agent versus a sales or dual agent. Your North Shore Associate can guide you through every step to buying a home. 2. Shop for mortgage rates and terms. A difference of even half a percentage point can mean a huge savings over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8 percent vs. 7.5 percent is about $35 per month. Over 30 years, that’s $12,600.
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| 3. Pre-qualify for a loan. Your third step should be to get pre-qualified, which determines how much you can afford. It allows you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious and really can afford to buy the property. The cost of receiving a pre-qualification letter from the bank of your choice varies and may be valid for a limited time. |
| 4. Define what you want. The next step is to create a realistic idea of the property you’d like to buy. What features are most important to you? Make two lists: one of the items you can’t live without and one of the features you would enjoy. Refine the lists as you house hunt. It is also helpful to search online to see what is currently available on the market. Your real estate professional can then show you houses that meet your expectations. |
| 5. Where Do We Want To Live? Selecting a neighborhood that is compatible with your comfort and lifestyle is the next consideration. A variety of concerns will play into your decision about which neighborhood is right for you and your family. You may consider, but not limit yourself to the following:
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| 6. Visit Properties. Now you’re ready to visit houses. Ask your North Shore Realtor® to arrange showings, and keep track of the properties you’ve seen. |
| 7. Know the features that help or hurt resale. In some areas, a swimming pool actually detracts from a home’s value and makes it harder to sell. In neighborhoods with two-car, attached garage, a single-car or detached garage may impact the home sale and future value. Your North Shore Realtor® can point out features that hurt or help resale value. |
| 8. Rate the houses you tour. After touring each home, write down what you liked and didn’t like. Develop a rating system that will help narrow the field down. For example, pick the house you like best on day one and compare all other houses to it. When you find a better one, use the new favorite as the standard. |
| 9. Make an Offer. Once you’ve pinpointed your dream house, it’s time to get serious about the financial and contractual side of the purchase. Your North Shore Realtor® will be a strong advantage since you and the seller have different goals. |
| The Purchase Contract When you've made the decision to purchase a particular property, your North Shore Real Estate Realtor® will assist you in presenting an offer to the seller. Your offer to buy involves submitting a signed real estate contract that specifically states the terms and conditions upon which you would like to purchase the property. Your offer will generally be accompanied with a good faith deposit check for the seller. Depending upon the area in which you are located, this offer may be known as an offer to purchase, a contract of sale, and earnest money agreement, a deposit receipt, or perhaps another variation. The seller may accept your offer as presented, or employ the option to "counter" your offer with slightly different terms, price, financing, or other conditions. Once both you and the seller have agreed to the terms of the purchase, you have both signed the document, and you have been notified of the seller's acceptance (usually when you receive an actual copy of the contract) the document becomes a valid sale contract. NOTE: It may happen that you and the seller cannot reach a mutual agreement. In that case, the seller will refuse to sign your offer and no contract will be entered. |
| 10. Finalizing your Mortgage Application Your complete loan application may include details about:
The lender will carefully review the information provided by you in order to determine the risk in lending you money to purchase a home. |
| 11. If Agreed to in the Purchase Agreement, Arrange for a Home Inspection. After your offer is accepted, set up a home inspection. Your Realtor® can give you the names several reputable Inspectors to interview. |
| 12. Closing The Contract At the closing or settlement, you and the seller will each have completed the conditions and met the terms pursuant to your contractual agreement and title to the property will be conveyed to you. Your North Shore Real Estate Professional will have helped you through the myriad of steps of closing, including handling of the many details such as:
Following the closing you will receive a final settlement for your records that clearly illustrates all the fees paid by you to close the contract. WELCOME HOME! |
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