BUYING A HOME WITH STEVEN
No Penalty Cancellation Option when working with me
Congratulations on taking the first step toward home ownership! What an exciting journey you are about to embark upon. While the process may seem a little daunting, the rewards of home ownership are worth it! My hope is that this guide will be a useful tool to aid you in your home buying journey.
HERE ARE THE STEPS
BUILDING A FOUNDATION
Step 1: Find a Realtor
- Interview a few agents and see if their personality matches your needs/wants. You want to “click”!
Qualifications your agent should have:
- Local market knowledge
- Good reviews or testimonials
- Financial Knowledge – they can walk you through the numbers!
- Find an agent who works full time in the industry and has a track record.
- Great time management and communication skills:
- Did they show up on time & prepared?
- Do they communicate with you in a way that you understand and feel comfortable.
- Network connections:
>> Effective real estate agents rely on their relationships. Do they work with other agents regularly?
- Share your Housing Goals
Step 2: Know your Financials
- Maintain great credit
- Pay off as much debit as you can before proceeding
- Your lender will be pulling your credit in the future as a part of the pre-approval process so don’t worry about that just yet
- Compile and save any important financial documents
- 3 months worth of pay stubs & bank statements
- 2 years of tax returns & W-2’s or T4’s
Step 3: Find a Lender
- Compare different lenders to understand the benefits and advantages of working with each.
- Something as simple as a lower rate or term can save you thousands of dollars over the life of the loan.
- Make sure to tell EACH LENDER not to pull your credit until you’re fully committed to working with one
- If your credit isn’t where you want it to be, work on creating a plan with your chosen lender Your agent will be able to help you find someone trustworthy that they have worked with before.
Step 4: Establish a Budget
- Saving up 20% of a home’s purchase price as a down payment is suggested but often hard to do in high-priced markets
- If saving up 20% isn’t feasible, work with your lender to create the best plan for your needs
Remember that just because you’re approved for a certain amount doesn’t mean that you have to spend that amount. Work with your lender and agent to establish a price point and monthly payment that you will be comfortable with.
Step 5: Get Pre-Approved for a Mortgage
- Ask the lender if you qualify for any special loans, such as an Insured Mortgage, First Time Buyer’s Plan etc.
- Get Pre-Approved; this gives you, your agent, and the lender an estimate of how much you can afford based off of your credit score and past financial documents
- Work with your lender and real estate agent to determine if your file should be underwritten before submitting any offers. This will help to avoid any potential disappointments or delays during the transaction
INSURING YOUR HOME
Step 9: Do your Due Diligence
- Find a reputable and thorough home inspector, if you need suggestions ask your agent.
A good home inspector will help to ensure that you don't end up in a "money pit," for example, a property with lots of electricity, plumbing or foundation issues.
An inspector will also report any issues found with the home that will allow you to ask for repairs or a price adjustment during negotiations.
- If work is needed to be done on the property, strategize with your agent to submit a request for repairs or price adjustment.
- Review disclosures and paperwork with your agent.
- If you will be making any additions or construction to the property, such as adding a pool or a guest house, check with city building department to ensure zoning allows for those upgrades.
- Review title report with title representative and agent to ensure that there are no unknown easements or liens on the property.
Step 10: Arrange for Homeowner's Insurance
- Search for a homeowner's insurance policy with great coverage at a reasonable cost. Ask your lender for suggestions if necessary.
- Some lenders require a year's worth of homeowner's insurance up front before approving a mortgage