Steps in Buying your Home

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Buying a home is one of the most exciting adventures and, at the same time, one of the most important decisions you will ever make in your lifetime. Purchasing the right home can give you and your family that sense of belonging and security that you would not otherwise experience with renting. Unlike any other investment you will make, a home can shape your future and that of your family in more ways than just financially.

Home ownership also has its financial benefits. A home is an excellent investment, as it almost always appreciates in value. In addition, you can get tax benefits just by owning your own home through tax deductions for home mortgage interest and property taxes.

Let Sellect Realty guide you through this most exciting adventure! We will help you find your dream home and buy it at the best price and the best terms possible.

Decide What Type of Home You Want

Before you even begin house hunting, sit down and consider your goals, your needs and desires, and your priorities. Why do you want to buy a home? To stop renting, to have your own place, as an investment, to move up (to a better neighborhood or to a bigger house) or to downsize (when the kids have moved away).

Then decide on the home you want - the where and the what. List everything that comes to mind, then refine your list, separate the needs from the wants, the "must-have" from the "nice-to-have". If you're up to it, rank your list from highest to lowest on a scale of 1 to 5.




List down as many features, likes and dislikes as you can think of. When you get it all down on paper, you will find that it will help communicate your needs and desires as you house-hunt. Later, when you get to the stage of making a decision on which home to buy, this list will help remind you of your needs and priorities. Click here for your Dream Home Wish List.

Meet with your Agent

Talk to your Sellect Realty sales associate about your needs, the lifestyle you desire and your dreams and wishes for your new home. By signing an Exclusive Buyer's Brokerage Agreement, your agent is bound by the strictest ethical standards to work for your interests above anyone else's. Every information you share will be held in the strictest confidence and will be used only to get you the home of your dreams at the best price and the best terms possible.

Get Pre-Screened by a Lender

It is always a good idea to get pre-screened by a lender before you start your house-hunting. This way, you get a better idea of how much you can afford and how much a lender would be willing to lend you based on your income and credit standing. Having this information gives you a much better bargaining position with a seller. The fact is, some sellers will not negotiate with a buyer who has not identified a source of financing.

Pre-qualification helps you set a price range. Based on information you provide, you can get an estimate of the maximum loan you can obtain. This does not guarantee loan approval, but it does help you narrow your search to homes you can actually afford.

Pre-approval is a more formal process. You provide the same documents as you would in a loan application - credit history, income, amount and source of downpayment. Pre-approval guarantees the loan, however, certain other requirements have to be completed to get final approval.

Your agent can help connect you to lenders in your area, compare interest rates and determine the mortgage plan that will work best for you. However, since everyone's situation is different discuss the details of your loan with your loan officer.

Search for your Dream Home

This is probably the most exciting part of the home-buying process. Based on the information you provide, the current housing market, and financing options available, your agent will set up a plan to find neighborhoods and homes that fit your needs. Your agent will go through all the available databases of homes for sale, and pre-select homes that fit your criteria. You can also help in the search by using the search feature provided on Our Property Search, store your search criteria, and save properties you would like to view.

Your agent will schedule with you and the seller a day and time to view the properties you pick. It is easy to fall in love with a home that does not fit your needs so take notes, compare the homes' features with your list, list the good and bad of each property and compare. Ask your agent for school district, tax and other relevant information. Make this most important decision with as much information as you can gather!

To aid you in recording the features and rating the homes that you visit, you may use the attached PDF file -  Home Shopping Checklist. 

Offer to Purchase

Once you have selected the home you would like to purchase, your agent will help you draw up an offer - set your offer price and the terms of your offer. When presented, the seller can accept or reject your offer, but typically there will be offers and counter-offers until all parties involved are agreeable to the price and the terms

This is when your agent's help becomes very important. Your agent will be there to answer all your questions and assist you until you achieve a satisfactory agreement with the seller in the form of a legally binding sales contract. Your agent's knowledge on the legalities of the real estate contract will protect your best interest throughout the negotiation process.

Home Inspections and Financing

Once an offer has been accepted and depending on the terms of your contract, several professionals will now get involved in the home-buying process:


If you are financing your home purchase, you should also get final loan approval from your lender. Let your loan officer know that you have a sales contract so they can start the process of appraisal and title inspection. You should also lock in your interest rate at this time. You will be given a new Good Faith Estimate showing the amount of your monthly payment and the funds you need to bring to closing (for down payment and any items that have to be prepaid, such as taxes and interest). Your agent or closing attorney will inform you of the day and time of closing and the items that you will need to bring.

During this time you should also shop around for a homeowner's insurance. The policy will protect your home in case of fire, theft, storm, vandalism and other such hazards. Ask your lender what type of insurance and how much coverage is required.

A word about Title Insurance: Your lender will normally require a title insurance. This protects the lender (and only the lender) in case of title defects. For a small amount, you can also get a title insurance that will protect you in case a defect is later discovered in the title.

Just before closing, you may conduct a final walk-through to inspect the property and make sure all the agreed-upon repairs have been completed.

Throughout this process, your Sellect Realty sales associate will assist you, answer any question you may have, give you advice and make any follow-ups that may be necessary.

Closing

The day has finally arrived when you will take possession of your home!

Your agent will follow up with the closing attorney's office to check if the closing is proceeding as scheduled and will receive your Settlement Statement, as soon as possible, to review with you.

Your agent will be present at closing to make sure that everything goes smoothly. Should any last minute items come up, he or she will mediate for you so closing can proceed.

Finally, contact your utility companies so you can have services installed - gas, electricity, water, telephone, cable, garbage, sewer, etc. Remember to inform your relatives, friends and business contacts of your change of address.

Congratulations on the purchase of your home!
May you have many happy years and wonderful memories.