Prepare To Buy
The journey to homeownership begins with thorough preparation. In this initial step, you’ll assess your financial readiness and secure the necessary financing to make your dream a reality. It starts with a detailed review of your credit, establishing a budget, and determining the type of mortgage that suits your needs. We suggest speaking with a mortgage lender to get pre-approved before you begin your home search! With a mortgage pre-approval in hand, you’ll have a clear idea of your purchasing power, enabling you to shop for homes within your means. We can help you through this stage, ensuring you’re financially prepared to take the next step towards finding your ideal home.
Build Your Green File
A green file contains all your important financial documents.
You will need it to secure financing for your property. The typical green file should contain:
- 401K statements, life insurance, stocks, bonds, and mutual account information.
- Financial statements
- Bank accounts
- Investments
- Credit cards
- Auto loans
- Recent pay stubs
- Tax returns for two year
- Copies of leases for
investment properties
Be Careful With Your Finances
Now is not a good time to make sudden career changes or large purchases. You want to approach your property purchase from a position of financial stability.
Check Your Credit Rating
Your credit score will have an important impact on what type of property you can buy, and at what price. It is first recommended to check your credit rating with an experienced lending institution so that we can determine what you can afford. We will be happy to recommend experienced, knowledgeable lenders upon request.
Choose Your Realtor
Selecting the right real estate agent is like finding a trusted partner for your home buying journey. Your realtor will not only guide you through the process but also offer valuable insights and local knowledge to ensure you make informed decisions. We understand that this decision is a pivotal one. Our team is dedicated to providing personalized, client-focused service, and we take pride in our local expertise. With a focus on understanding your unique needs and preferences, we’ll help you navigate the market and find the perfect home for you. Your dream home awaits, and we’re here to help you every step of the way!
Home Search
The home search phase is where your vision of the perfect property begins to take shape. With The Paula McDaniel Group by your side, you’ll explore listings that align with your criteria, including location, size, style, and budget. Together, we’ll schedule viewings to see potential homes in person or virtually and gain a real sense of what each property offers. This is a time of excitement and possibility, where you can see firsthand how different homes can meet your needs!
Take a Drive
Get to know the neighborhoods, complexes, or subdivisions, which interest you. Drive around and get a feel for what it would be like to own a property in the area. Start getting a sense of the properties available in those areas.
Narrow Your Search
Select a few properties that interest you the most, and we can make appointments to visit them!
Time to Buy
Once you have picked out the property you want to purchase, we help you make an offer and negotiate the best price and terms for you.
Making An Offer
Selecting the right real estate agent is like finding a trusted partner for your home buying journey! We will not only guide you through the process, but also offer valuable insights and local knowledge to ensure you make informed decisions. We understand that this decision is a pivotal one. Our team is dedicated to providing personalized, client-focused service, and we take pride in our local expertise. With a focus on understanding your unique needs and preferences, we will help you navigate the market and find the perfect home for you. Your dream home awaits, and we are here to help you every step of the way!
Accepted Offer
With an accepted offer in hand, the path to homeownership becomes more defined. You will work to finalize your finances, which includes securing your mortgage, conducting inspections, and addressing any contingencies outlined in the contract. This phase ensures that the property is in good condition and that any necessary repairs or adjustments are made to meet your expectations. It’s all part of the due diligence process, assuring you that your investment is well-protected.
The Initial Agreement and Deposit
An effective agreement is a legal agreement between a potential purchaser and the property’s seller.
Some important tips to keep in mind to streamline the process:
- Keep written records of everything. It will be extremely useful to transcribe all verbal agreements including counter-offers and addendums and to convert them into written agreements to be signed by both parties. We will assist you in drafting all the paperwork for your purchase and make sure that you have copies of everything.
- Earnest Money Deposit is a deposit made by the buyer that represents a buyer’s good faith to purchase a property. Either a real estate company or closing agent will hold the deposit in escrow until closing, at which time the deposit in escrow will be credited to your purchase. Earnest money deposit amounts can vary, and we will assist you in deciding the amount for your offer.
- Stick to the schedule. Now that you have chosen your offer, you will be given a timeline to mark every stage in the process of closing the real estate contract. Meeting the requirements on time keeps you from being in breach of our agreement. During the process we will keep you constantly updated, so you will be prepared for the next step.
The Closing Agent
Either the title company or an attorney will be selected as a closing agent. The closing agent will research the complete recorded history of the property to ensure that the title is free and clear of encumbrances by the date of closing and that all new encumbrances are properly added to the title. Some properties are subject to restrictions which limit various activities such as building or parking restrictions. There may be recorded easements and encroachments, which limit the rights to use your property. Although the closing agent will handle the transfer of title, we will be there to help you every step of the way.
How to Hold Title
You may wish to consult an attorney or tax advisor on the best way to hold title. Different methods of holding title have different legal, estate and tax implications, especially when selling or upon death of the title holder.
Inspections
Once your offer is accepted by the seller, you will need to have a licensed property inspector inspect the property within the time frame that was agreed upon in the effective contract to purchase. You may elect to have different inspectors inspect the property, if you wish to obtain professional opinions from inspectors who specialize in a specific area (eg. roof, HVAC, structure).
Depending on the outcome of these inspections, one of three things may happen:
- 1.)Either each milestone is successfully closed and the inspection contingency will be removed, bringing you one step closer to the close, or
- 2.)The buyer, after reviewing the property and papers, requests repairs or a renegotiation of the terms of the contract (usually the price).
- 3.)You the buyer have the option to terminate the contract
Appraisal and Lending
It is imperative that you keep in close communication with your lender, who will let you know when additional documents are needed to approve your loan application and fund your loan. If the agreement is conditional upon financing, then the property will be appraised by a licensed appraiser to determine the value for the lending institution, via a third party. This is done so that the lending institution can confirm their investment in your property is accurate. Appraisers are specialists in determining the value of properties, based on a combination of square footage measurements, building costs, recent sales of comparable properties, operating income, etc.
Association Approval
If the property that you are purchasing is conditional upon an association approval, request the rules, restrictions, and other important documents as soon as you have an effective agreement to purchase. Make sure that the application documents and processing fees are submitted to the appropriate person at the association by the required time. Fill out all of the information completely and legibly so there is no delay in processing the application. If you are required to meet with the association for your approval, make an appointment as soon as possible for the interview. Most associations require a certificate of approval before move-in. Your closing agent will request that the original copy of this approval letter be brought to the closing, so that it can be recorded with the deed in the county public records.
Property Insurance
If you are obtaining a loan, you will be required by your lender to purchase a certain amount of insurance on the property. The value will depend on the lending institution and the purchase price of the property. You may be able to save hundreds of dollars a year on homeowners insurance by shopping around for insurance. You can also save money with these tips.
- Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium.
- Ask your insurance agent about discounts. You may be able get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire-retardant roofing materials.
Moving In
The final step in your home buying journey is the day you move into your new property. This exciting step involves coordinating the closing process, where all the necessary paperwork is signed and the property officially becomes yours. From packing and hiring movers to making your new house a home, this is the moment when you can finally settle in, creating a space that’s uniquely yours. It’s an exciting transition, and we’re here to ensure it goes smoothly, leaving you to focus on the joy of moving into your dream home.
Final Walk-Through Inspection
The final inspection takes place a day before, or the day of the closing. You will visit the property to verify that all is in working order, everything is the same as when you made your offer, that there are no extra items left behind, and that everything included in your purchase is still at the property.
Be Prepared
We are ready to assist you should an unforeseen glitch pop up, even at this last stage. Something at the property breaks down, or some other minor detail – no need to worry. We have encountered these problems before so we know how to handle them efficiently and in a stress-free manor.
Closing
The closing agent will furnish all parties involved with a settlement statement, which summarizes and details the financial transactions enacted in the process. You and the seller(s) will sign this statement, as well as the closing agent, certifying its accuracy.
If you are obtaining financing, you will have to sign all pertinent documentation required by the lending institution. If you are unable to attend the scheduled closing, arrangements can be made depending on the circumstances and the notice that we receive.
If you are bringing funds to the transaction, and depending on the amount, you can elect to either have the funds wired electronically into the closing agent’s escrow account, or bring a certified bank check to the closing in the amount specified on the settlement statement. The seller should arrange to have all property keys and any other important information for you at the closing so that you may receive these items at this time.