SO, YOU'RE READY TO BUY? NOW IS THE TIME TO TALK TO YOUR AGENT!

This is a helpful explanation of what to expect when buying a home.

Once you decide that you're ready, one of the most important steps in the process (and probably the very first thing to do before house hunting) is to get a prequalification letter from a trusted lender or mortgage broker. This gives your Agent and you a good idea of the price range for which you are qualified. Many Sellers and their Agent's company REQUIRE a prequalification letter (or a bank letter of sufficient funds available) to be submitted with any offer to purchase.

Most Buyers want their Agent to represent them as a Buyer's Agent. There is a Buyer Agency form to be signed that, basically, assures the loyalty of each party. The Buyer agrees to be loyal to the Agent, and the Agent agrees to work exclusively and confidentially for the Buyer, helping them get their ideal property at the best price.

If there is more than one person making decisions on what to look for, take some time to discuss what you want before you start to look. Make a list of "necessary" features and a list of "nice to have, but not necessary" things too. (Downloadable questionaire to help with your criteria will be added here soon.)

After you start the search for your new home, your Agent will assist you throughout the entire process. If you find a home you wish to see - whether you see an ad for the property, ride by an interesting property for sale, stop by a new home neighborhood, or an Open House, or are told about a property by someone else - be sure to let everyone know that you are represented by a Buyer's Agent. AND let your agent investigate any of these properties for you. Since we belong to Multiple Listing Service, your Agent is able to show you ANY property on the market, no matter who the listing Agent and company are. Agents in the MLS service cooperate with each other, and the Agent who sells the property is usually compenstated by the Listing Agent. If you're interested in a "For Sale By Owner" home, don't hesitate to ask your Agent to check on the property for you. Most Owners are willing to work with Agents who have Buyers for their home, allowing Agents to show the prperty, and also compensating the Agent with a commission when the transaction closes.

When you make your decision on the property you wish to buy, the following things should happen:

Your Agent helps you write the "Offer to Purchase," advising you on all aspects of the offer, including price. You write an "earnest money" check, payable to the Listing Company. The amount depends on the price of the house, but you many consider around $1,000. This check is usually not deposited until both parties (Buyer and Seller) have agreed upon all terms and have signed the "Offer to Purchase," at which time it becomes a binding contract. Your check will then be deposited in the Listing Company's escrow account within 72 hours of contract signing. The security deposit money will be credited to you (Buyer) at closing.

If you need assistance with a lender or mortgage broker, your Agent will be there for you. At the time you finally apply for the mortgage, you may be expected to pay for the appraisal (approximately $350), and credit report (varies, but could be around $30). The appraisal will be ordered by the lender.

Your agent will schedule a home inspection to be done by a Licensed Home Inspector, and at a time that is convenient for you and your Agent to be there, if possible. It is advisable for you to attend the inspection, as it is the time for you to learn all you can about your new home while the inspector is there. Usually inspections take 2 to 3 hours, and will cost the Buyer about $300 to $400. You may request an inspector, or ask your Agent to pick one for you. After the inspection report has been received, you and your Agent will determine if there are any repairs that you would like for the seller to take care of. All agreements for repairs will be done in writing, and signed by Buyer and Seller.

A termite inspection might also be required, and can be scheduled by your Agent. New homes do not need a termite inspection.

Your Agent will contact a real estate Attorney to arrange a closing date and time. The Attorney will conduct a property title search, secure title insurance, order the survey (if necessary), handle the paperwork for the mortgage, prepare the closing settlement statement (HUD1), and conduct the closing.

You will need Homeowner's insurance on your new home. If you don't have an insurance agent or company, your Agent can assist you in obtaining coverage.

Prior to closing, you will need to contact the various utility companies to transfer the utilities to your name. Your Agent can also assist you in obtaining the names of the utility companies, and their contact information, if you don't already have this information.

You and your Agent will go back to the home just before closing for a final "walk-through" to ensure all agreed-upon repairs have been properly completed.

The closing Attorney's office will inform you and your Agent exactly how much money you will need to bring to the closing table. You'll need to get a cashier's check, payable to the Attorney, and bring it to the Attorney's office at the time of closing. Unless otherwise agreed upon on the contract, you may possibly take possession of the property on the day of closing, AFTER the Attorney has recorded the deed at the county court house. Sometimes the deed can't be recorded until the next business day. If you anticipate a delay in taking possession, you and the Seller could sign an addendum that allows you to take possesion prior to closing. This can be a complicated arrangement, and serious liability issues should be considered. If early possession is not really necessary, just be patient, and you'll be walking into your new home very soon!

Everyone will be saying, "Congratulations on your new home purchase!"

On-line ADVANCED home search.