DECIDING TO BUY

All-Inclusive Buying Strategy to Purchase Your New Home

  • FINANCIAL PREPARATION

  • YOUR HOME SEARCH

  • ESCROW, INSPECTIONS, & APPRAISALS

  • MOVING IN

FINANCIAL PREPARATION

  • 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:

    Financial statements

    Bank accounts

    Investments

    Credit cards

    Auto loans

    Recent pay stubs

    Tax returns for two years

    Copies of leases for investment properties

    401K statements, life insurance, stocks, bonds, and mutual account information.

  • Your credit score significantly influences the kind of property you can purchase and its cost. It's wise to assess your credit rating through a reputable lender to gauge your financial capacity. The lender will evaluate your credit scores from the three major credit bureaus: Equifax, Experian, and TransUnion. We're here to suggest skilled lenders in residential, construction, commercial, and investment real estate sectors to assist you.

  • At the moment, it might not be the most opportune time to make sudden shifts in your career or engage in significant purchases. It would be prudent to consider your property buying plans while ensuring a stable financial standpoint.

YOUR HOME SEARCH

  • Purchasing a property entails navigating a multitude of crucial financial choices, comprehending intricate matters, and managing extensive documentation. Having a knowledgeable professional by your side can be immensely beneficial when embarking on such a significant investment. Our role involves expertly steering you through this journey, and furthermore, granting you exclusive access to property listings prior to their public release, thus enhancing your options.

  • Familiarize yourself with the neighborhoods, complexes, or subdivisions that pique your interest. Take a leisurely drive around to immerse yourself in the experience of potentially owning property in the vicinity. Begin acquainting yourself with the available properties in these chosen locales.

  • Identify a handful of properties that particularly capture your attention and collaborate with your real estate agent to arrange viewings. It's also a good idea to consult your real estate agent regarding the prospective long-term resale value of the properties under consideration. This thoughtful approach will aid you in making informed decisions.

  • Once you've singled out the property you intend to purchase, I can aid you in formulating an offer that the seller finds favorable. I'll diligently explore the potential costs and financial aspects linked to the new property. Additionally, I'll assist you in drafting an offer strategically, enhancing your competitive edge in case of rival offers. This collaborative effort ensures that you navigate the process with shrewdness and effectiveness.

CLOSING AND MOVING IN

  • In a formality of the process, the final inspection is conducted either the day before or on the day of the closing. During this step, you will revisit the property to ensure everything is in proper working order and consistent with your previous viewings. The purpose is to confirm that the property remains as you last saw it, with no additional items left behind or any discrepancies. This thorough inspection ensures that all elements included in your purchase remain at the property as expected.

  • We will provide a list of useful numbers for the activation of home services and utilities after the closing occurs.

  • The closing agent will provide a settlement statement to all parties involved, outlining and elaborating on the financial transactions carried out during the process. This document will be signed by both you and the seller(s), along with the closing agent, validating its accuracy. In the case of financing, you'll be required to sign all pertinent documents as mandated by the lending institution.

    Should attending the scheduled closing be unfeasible, accommodations can be explored based on the circumstances and the notice provided. If you're contributing funds to the transaction, you can choose between electronically wiring the funds into the closing agent's escrow account or presenting a certified bank check during the closing, in accordance with the amount stipulated in the settlement statement.

    The seller is responsible for ensuring that all property keys and any other pertinent information are available to you during the closing. This ensures a seamless handover of these items to you at this juncture.

ESCROW, INSPECTIONS, & APPRAISALS

  • An effective agreement constitutes a legal understanding between a potential buyer and the property's seller.

    Here are some essential pointers to facilitate the process:

    Maintain written documentation of all interactions. For clarity's sake, recording all verbal discussions, including counter-offers and addendums, and subsequently converting them into written agreements signed by both parties will prove highly beneficial. We will take charge of preparing all necessary documentation for your purchase and ensure you possess copies of each.

    Adhere to the established timeline. With your chosen offer in place, a timeline will be set for you and the seller to mark each phase in the real estate contract's closure. Meeting these timeframes ensures a seamless negotiation process, preventing any breach of agreements by either party. Throughout this process, we will provide you with consistent updates, ensuring you remain well-prepared for subsequent steps.

  • A closing agent, either a title company or an attorney, will be designated for this purpose. The closing agent assumes responsibility for holding the deposit in escrow. They will conduct a comprehensive examination of the property's recorded history to guarantee a clear and unencumbered title by the closing date. Additionally, the closing agent will ensure proper inclusion of any new encumbrances onto the title.

    Certain properties might be subjected to restrictions that impose limitations on various activities, such as construction or parking. Recorded easements and encroachments could also curtail your property usage rights. This meticulous review guarantees a well-informed approach to property acquisition.

  • 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.

  • Once your offer receives the seller's acceptance, the subsequent step involves engaging a licensed property inspector to assess the property within the designated timeframe outlined in the effective purchase contract. You have the option to select different inspectors with specialized expertise (e.g., roof, HVAC, structure) to provide professional insights in specific areas. For those purchasing commercial property, an environmental audit might be necessary for the lending institution's requirements. We can provide recommendations for various inspectors.

    Following these inspections, two potential scenarios may unfold:

    If each inspection milestone is satisfactorily met, the contingencies will be lifted, progressing you closer to the final closing stage.

    Alternatively, after evaluating the property and the associated documentation, the buyer may request a renegotiation of the contract terms, often involving adjustments to the price. This process ensures that your interests are well-served and aligned with the property's condition and value.

  • Maintaining a close and consistent line of communication with your lender is of utmost importance. They will apprise you of any additional documentation required to facilitate the approval of your loan application and the subsequent funding of your loan. Should the agreement hinge on securing financing, a licensed appraiser will evaluate the property's value on behalf of the lending institution, acting as an independent third party. This step is taken to validate the accuracy of the lending institution's investment in your property.

    Appraisers possess specialized expertise in assessing property value, drawing on factors like square footage, construction costs, recent sales of comparable properties, operational income, and more. As you approach the closing date, it's prudent to verify with your lender, at least two weeks prior, to ensure a seamless and timely loan processing and approval. This proactive approach ensures a smooth culmination of the transaction.

  • n the event that you secure a loan, your lender will necessitate a specific level of property insurance coverage. The exact amount hinges on the lending institution's guidelines and the property's purchase price. By exploring different insurance options, you could potentially save a substantial amount—hundreds of dollars annually—on your homeowners insurance.

    Consider these strategies to potentially reduce costs:

    Opt for a higher deductible: Increasing your deductible by a modest sum can yield noticeable reductions in your premium.

    Inquire about available discounts: Engage your insurance agent in a discussion about potential discounts. Home safety features such as dead-bolt locks, smoke detectors, alarm systems, storm shutters, and fire-retardant roofing materials may make you eligible for lower premiums. Discounts might also be extended to individuals aged 55 and above, as well as longstanding customers.

    Insure your dwelling, not the land: In the aftermath of a disaster, the land remains intact. It's prudent to calculate your homeowner's insurance amount by deducting the land's value. This approach ensures that you don't pay more than necessary.

    For your convenience, we're pleased to offer recommendations for proficient and knowledgeable insurance agents catering to diverse property types. This way, you can secure comprehensive coverage with confidence.