BUYERS

Deciding To Purchase

Making the decision to purchase a property is a significant financial milestone. Whether you’re a first-time buyer or an experienced one, this choice should be made with careful consideration.

Why Do You Want To Buy?

Consider your motivations. Are you tired of renting and want to invest in your own property? Have you outgrown your current home? Are you seeking an investment opportunity or a rental property? Do you desire a change in location or to shorten your commute? Clearly defining your reasons for buying will guide your property selection.

Has Your Income Grown?

Property ownership is a wise investment, whether it’s your dream home, an addition to your investment portfolio, or a rental property. Real estate offers a low-risk method of building equity and increasing your initial investment.

Preparing To Buy

Before embarking on your property search, take some essential steps.

Build Your Green File

Compile your financial documents into a “green file,” which is crucial for securing property financing. This file should include financial statements, bank accounts, investments, credit cards, pay stubs, tax returns for the past two years, lease copies for investment properties, 401K statements, life insurance, and stock, bond, and mutual fund information.

Check Your Credit Rating

Your credit score significantly influences the type and price of the property you can purchase. Begin by checking your credit rating with a reputable lending institution to determine your affordability. Lenders will review your credit ratings from Equifax, Experian, and Trans Union. Our team can recommend experienced lenders in various real estate sectors.

Be Mindful of Your Finances

It’s not the time for sudden career changes or large purchases. Approach your property purchase from a position of financial stability. Avoid applying for new loans, changing jobs, or retiring.

Choosing A Real Estate Agent

Purchasing a property involves complex financial decisions, understanding intricate matters, and navigating substantial paperwork. Having an expert by your side is invaluable. We can guide you through the process and provide early access to property listings.

Consider the following when selecting your real estate professional:

• Choose a full-time agent with experience in transactions similar to yours.
• Interview multiple agents to ensure they are familiar with your desired area.
• Inquire about their availability and if they are accessible during evenings and weekends.
• Ask about their credentials and ongoing education.
• Assess their responsiveness in returning your calls.
• Request a list of properties they’ve sold or references.
• Choose an agent who listens attentively to your needs.

Time To Go Shopping

Once preparations are complete, the property search begins.

Take a Drive

Explore neighborhoods, compounds, or subdivisions that pique your interest. Drive around and gain insight into what it’s like to own property in the area. Visit at different times of the day to assess factors that may affect your experience.

Narrow Your Search

Select a few properties of interest and schedule visits. Consult your real estate agent regarding the long-term resale value of these properties.

Time to Buy

Once you’ve found the property you wish to purchase, we’ll help you craft an offer that the seller is likely to accept. Our goal is to ensure your offer gives you an advantage over other offers.

Escrow Inspections and Appraisals: The Process, Step-by-Step

The Initial Agreement and Deposit

An effective agreement is a legally binding arrangement between you and the seller. Keep written records of all agreements, and convert verbal agreements into written, signed documents.

Stick to the Schedule

Meeting deadlines ensures smooth negotiations. We’ll keep you updated throughout the process.

The Closing Agent

A closing agent, either a title company or attorney, will be selected to hold the deposit in escrow and ensure the title is free and clear of encumbrances. Some properties may have restrictions or recorded easements that affect their use.

How to Hold Title

Consult an attorney or tax advisor to determine the best way to hold the title, considering legal, estate, and tax implications.

Inspections

Property inspections, performed by licensed inspectors, are essential. You may need specialists for specific areas like roofing or HVAC. The property may also require an environmental audit, especially for commercial properties.

Appraisal and Lending

Your lender will inform you of additional documentation required for loan approval. An appraisal will determine the property’s value for the lender. Keep in close contact with your lender to ensure a smooth loan process.

Association Approval

If your purchase is conditional upon association approval, submit the necessary documents promptly and follow up on your application. Obtain the association’s certificate of approval before moving in.

Property Insurance

Your lender will require a certain amount of property insurance. Shop around for the best rates and consider a higher deductible for savings.

Closing Day

Final preparations before closing:

Final Walk-Through Inspection: Verify the property’s condition and that all agreements are met.

Home Services and Utilities: Gather contact information for setting up utilities and services.

Be Prepared: We are here to assist with any unforeseen issues, ensuring a smooth closing process.

Closing: All parties will receive a settlement statement summarizing financial transactions. Sign the necessary documents, and the keys and important information will be provided to you at closing.