Buying a Home

First Pre-qualify -

(You will know your buying power. This will save you lots of time.)

Pre-qualifying also gives you buying power. With your offer on a home, you can submit to the seller a pre-qualifying letter. This could give you an edge over another offer by demonstrating that you may have a greater ability to close. Sellers like to have as much assurance as possible that the buyer is qualified for a loan.

The Offer -

When you find a house you like, you will want to submit an offer. Once the offer is made, the seller may do one of three things:

• Accept the offer
• Counter the offer (counter at a different price or conditions than you specified)
• Reject the offer

Once an offer is accepted and signed and initialed by both parties, you may find yourself waiting for a closing. Between contract and closing, several things happen. Those may include, but not be limited to:

• Professional appraisal
• Repairs
• Survey
• Title work
• Loan approval (Be careful with credit purchases you may make between loan approval and closing. You could buy a bunch of furniture, etc. for your new home and then find at closing you have messed up your ratios for getting the home loan.)

Closing -

• Take your photo ID
• Make sure there is a wood destroying insect report on the home
• Title companies generally want cashiers checks for your portion of the monies
• If you are getting a loan, know your interest rate before you go to closing. Don't be surprised by the interest rate you hear at closing. (Note that in many cases it is possible to "Lock" your interest rate at a certain point between contract and closing, so that it won't go up before closing.)

Funding and Move-in -

Closing does not in every case mean move-in. Deals have to be funded. This means that the lender funds, etc. have to be dispensed to the appropriate parties. It is usually preferable to defer move in until after funding.

Move-in -

It is a good idea to coordinate how you will handle utilities, phone, and mailbox info and transfer prior to closing. Also shop the cost of movers before you commit.

Selling a Home

Ask for "Comps."

These are records of comparable sales which have taken place in your neighborhood. See what things are selling for. Be realistic about what you are asking for your home, given its comparable condition, location and appearance. If you are selling with the intention of buying another home, it is a good idea to get pre-approval for a loan before you put your home on the market. You can seek pre-approval by calling a lender and scheduling an appointment to answer some questions, fill out some forms and provide some data. Pre-approval can give you a good idea of what level of loan you have a chance of being approved for when you buy another house.

Have a back-up plan:

Know what you will do if your home sells and closes quickly. Know what you will do if it takes longer to sell your home than you anticipated When you look at an offer, ask to see a letter showing that the buyers are pre-qualified. Be sure you want to sell your home before you put it one the market.

(Note: Buyer pre-qualification does not mean the buyer is guaranteed of getting a loan. It is result of a quick look at their financial circumstances. Other things could surface or transpire which could preclude loan approval.)

Understand appraisals

In most cases homes must appraise for the purchase price applied for in the loan. If you have over-priced your home, it may not appraise. This could force a buyer to come up with more cash and could kill the deal.

Know that repairs may be requested

Repairs may be required in order to close. Be aware of requirements for repairs. Keep track so there are no surprise repairs required at closing. (Be aware that requests for repairs are common when offers are being made on a home, no matter what condition the home may be in.)

Don't be surprised by liens

Liens on a property can cause problems in closing. Check for liens before marketing your home. (This can be done through an attorney or title company.)

Don't take offers casually

Offers may include added writing which requires certain repairs, move-in expectations and other terms.