So, you've been pre-approved by your lender. You've chosen your REALTOR, and we've discussed what you are looking for in a home and come up with a list of properties. Now we should begin to tour homes in order to find the one that is right for you.
By touring homes you will begin to get a good sense of the local market -- or in other words what type of home is being offered for what money. You will also get a sense of what size of home seems about right for you. You'll likely begin to fine tune those needs and wants.
As we tour homes we will have a Sellers Disclosure on hand which offers lots of detailed information on the home provided by the Sellers, such as: do the major systems in the home (heating/plumbing, etc.) work, has the basement ever had evidence of water, does the roof leak, age of furnace, etc. We will be looking for positives in the home as well as negative factors.
When you finally narrow the field to a few homes that you might actually be interested in, then its time to find out even more about them. I will always check on the heating costs for the home - and if you want, other utilities. The heating bill tells you a lot about the home (windows and insulation and furnace for example). Most of the other utilities will be more dependant upon your own personal use. I also will help you to ESTIMATE what the property taxes will be once you own the home. You'll notice that we are rarely provided with current tax information. That is because the current owners taxes are rarely indicative of what YOUR taxes will be after you take ownership. I will look for the most current information we have from the local municipality: the local millage rate and the Assessed Value of the property, and we can get a good estimate of what you can expect.
While we are in the home its a good idea for us to think through what items we might want to write into an offer, such as: what personal property you want to ask for, what information you might make your offer contingent upon -- such as covenants, leases, road association info, etc.
Once you are satisfied that this is the home you want to make an offer on, then we are ready to go back to the office and do just that. We'll cover writing offers next week!
Lets go see some homes! ~ Liz
Monday, March 30, 2009
Thursday, March 26, 2009
This handy list of items you may need for preparing your income taxes was online at msnmoney. I thought it appeared very comprehensive. I am not a tax professional, but thought I could share it. Its seems like a good starting point and I suggest you gather data and work with a tax professional. If you would like the name of a good tax preparer in town, email me and I will suggest several.
Taxpayer's checklist for tax year 2008
Information you need
Where to get the data
PERSONAL DATA
Social Security numbers (including spouse and children)
These are required to qualify for exemptions.
Your child-care provider's tax ID or Social Security number
This is critical to qualify for child care credits.
Form 8332, copies of your divorce decree, or other documents proving your right to claim a child living with your ex-spouse.
Divorce documents are on file in the court where you filed. Your lawyer should have them as well. Form 8332 is available on the IRS Web site.
EMPLOYMENT & INCOME DATA
W-2 forms for this year
These come from your employer.
Partnership and trust income
Data for these should come from an accountant or financial institution.
Pensions and annuities
Data should come from the financial institution, insurance company selling the annuity or pension fund.
Social Security Railroad Retirement Benefits
You will need Form RRB 1099 or Form RRB 1042S for nonresident alien recipients of Railroad Retirement benefits.
Alimony received
Tax information should come from your ex-spouse or his representative. Your former spouse will want your Social Security number to be able to deduct any alimony payments.
Jury duty pay
Data should come from the court clerk.
Gambling and lottery winnings
This data should come from the casino or lottery authority. Use Form W-2G.
Prizes and awards
Data should come from the award givers. Use Form 1099-MISC.
Scholarships and fellowships
Data should come from the administrators of these programs. Use Form 1099-MISC.
State and local income-tax refunds
Data should come from the taxing authorities.
HOMEOWNER/RENTER DATA
Residential address(es) for this year
This is your responsibility.
Mortgage interest
Your lender will send you this data on Form 1098.
Sale of your home or other real estate
Your lender or closing agent should send you Form1099-S.
Second-mortgage interest paid
Your lender will send you this data on Form 1098.
Real-estate taxes paid
Your county clerk or lender should send you this data.
Rent paid during tax year
You need to generate this data.
Moving expenses
If your expenses are reimbursed by an employer, the employer will furnish you with data on the moving costs they paid for.
FINANCIAL ASSETS
Interest-income statements
Financial institutions will provide this data on Form 1099-INT & Form 1099-OID.
Dividend-income statements
This will come on Form 1099-DIV from the company paying the dividends.
Proceeds from broker transactions
Your brokers should furnish this data on Form 1099-B.
Tax refunds and unemployment compensation
The issuing agencies should send this information on Form 1099G.
Miscellaneous income including contract or freelance work or rent
This should come from whoever distributes the income on Form 1099-MISC.
Retirement-plan distribution
Whoever sends out your pension checks should send you this data on Form 1099-R.
FINANCIAL LIABILITIES
Auto loans and leases Including account numbers and car value -- if the vehicle is used for business
You can get this data from the lender or leasing company.
Student loan interest paid
The lender should furnish this data on Form 1098-E.
Early withdrawal penalties on CDs and other time deposits
Financial institutions should provide this data.
AUTOMOBILES
Personal-property tax information
This data should come from the state or local taxing authority.
DEDUCTIBLE EXPENSES
Gifts to charity
This data should come from the charity. Since 2007, you have new responsibilities. You will need a bank record (such as a canceled check, a bank copy of a canceled check, or a bank statement containing the name of the charity, the date, and the amount) or a written communication from the charity. The written communication must include the name of the charity, date of the contribution and the amount of the contribution.
Unreimbursed expenses for volunteer work
You will need to keep your own records for this. Remember, you can deduct any driving expenses for volunteer or charitable work at the rate of 14 cents a mile.
Unreimbursed expenses related to your job
You will need to maintain this data.
Travel expenses, entertainment, uniforms, union dues, subscriptions and investment expenses
Your broker will furnish some data. Travel, phone and other related expenses are your responsibility to track.
Job-hunting expenses
You will need to keep and maintain this data.
Education expenses
You will need to keep this data. But if you qualify for Hope or Lifetime credits or other college deductions, the college involved will send you the data on the qualifying expenses you've paid. If you plan to claim education deductions, you will need Form 1098-T from the institution. If you expect to deduct interest on student loans, get Form 1098-E from the lender.
Child-care expenses
You will need to keep this data.
Medical savings accounts
The institution handling the account will be able to generate any data.
Adoption expenses
You will need to track this data and be able to document these expenses.
Alimony paid
You or the authority disbursing funds will need to keep this data. To deduct this expense, you will need the recipient's Social Security number.
Sales-tax expenses
If you expect to claim a sales tax deduction on your 2007 tax return, you will need receipts for expenses. Or you can fill out a worksheet that the IRS provides to help estimate sales tax expenses.
Tax-return-preparation expenses and fees
Your preparer can furnish this data to you.
SELF-EMPLOYMENT DATA
K-1s on all partnerships
The partnership management should generate this data.
Receipts or documentation for business-related expenses
This is data you should keep and track.
Farm income
You or an accountant should tack this information. You will need to prepare Schedule F.
DEDUCTION DOCUMENTS
Federal, state and local estimated taxes paid for current year, including estimated tax vouchers, cancelled checks & other payment records
You must keep copies of this data and track it.
IRA, Keogh & other retirement plan contributions
You can get this information from your financial institutions.
Medical expenses
You must track this data.
CASUALTY OR THEFT LOSSES
Other miscellaneous deductions
You will need to file Form 4684.
Updated Dec. 10, 2008
Taxpayer's checklist for tax year 2008
Information you need
Where to get the data
PERSONAL DATA
Social Security numbers (including spouse and children)
These are required to qualify for exemptions.
Your child-care provider's tax ID or Social Security number
This is critical to qualify for child care credits.
Form 8332, copies of your divorce decree, or other documents proving your right to claim a child living with your ex-spouse.
Divorce documents are on file in the court where you filed. Your lawyer should have them as well. Form 8332 is available on the IRS Web site.
EMPLOYMENT & INCOME DATA
W-2 forms for this year
These come from your employer.
Partnership and trust income
Data for these should come from an accountant or financial institution.
Pensions and annuities
Data should come from the financial institution, insurance company selling the annuity or pension fund.
Social Security Railroad Retirement Benefits
You will need Form RRB 1099 or Form RRB 1042S for nonresident alien recipients of Railroad Retirement benefits.
Alimony received
Tax information should come from your ex-spouse or his representative. Your former spouse will want your Social Security number to be able to deduct any alimony payments.
Jury duty pay
Data should come from the court clerk.
Gambling and lottery winnings
This data should come from the casino or lottery authority. Use Form W-2G.
Prizes and awards
Data should come from the award givers. Use Form 1099-MISC.
Scholarships and fellowships
Data should come from the administrators of these programs. Use Form 1099-MISC.
State and local income-tax refunds
Data should come from the taxing authorities.
HOMEOWNER/RENTER DATA
Residential address(es) for this year
This is your responsibility.
Mortgage interest
Your lender will send you this data on Form 1098.
Sale of your home or other real estate
Your lender or closing agent should send you Form1099-S.
Second-mortgage interest paid
Your lender will send you this data on Form 1098.
Real-estate taxes paid
Your county clerk or lender should send you this data.
Rent paid during tax year
You need to generate this data.
Moving expenses
If your expenses are reimbursed by an employer, the employer will furnish you with data on the moving costs they paid for.
FINANCIAL ASSETS
Interest-income statements
Financial institutions will provide this data on Form 1099-INT & Form 1099-OID.
Dividend-income statements
This will come on Form 1099-DIV from the company paying the dividends.
Proceeds from broker transactions
Your brokers should furnish this data on Form 1099-B.
Tax refunds and unemployment compensation
The issuing agencies should send this information on Form 1099G.
Miscellaneous income including contract or freelance work or rent
This should come from whoever distributes the income on Form 1099-MISC.
Retirement-plan distribution
Whoever sends out your pension checks should send you this data on Form 1099-R.
FINANCIAL LIABILITIES
Auto loans and leases Including account numbers and car value -- if the vehicle is used for business
You can get this data from the lender or leasing company.
Student loan interest paid
The lender should furnish this data on Form 1098-E.
Early withdrawal penalties on CDs and other time deposits
Financial institutions should provide this data.
AUTOMOBILES
Personal-property tax information
This data should come from the state or local taxing authority.
DEDUCTIBLE EXPENSES
Gifts to charity
This data should come from the charity. Since 2007, you have new responsibilities. You will need a bank record (such as a canceled check, a bank copy of a canceled check, or a bank statement containing the name of the charity, the date, and the amount) or a written communication from the charity. The written communication must include the name of the charity, date of the contribution and the amount of the contribution.
Unreimbursed expenses for volunteer work
You will need to keep your own records for this. Remember, you can deduct any driving expenses for volunteer or charitable work at the rate of 14 cents a mile.
Unreimbursed expenses related to your job
You will need to maintain this data.
Travel expenses, entertainment, uniforms, union dues, subscriptions and investment expenses
Your broker will furnish some data. Travel, phone and other related expenses are your responsibility to track.
Job-hunting expenses
You will need to keep and maintain this data.
Education expenses
You will need to keep this data. But if you qualify for Hope or Lifetime credits or other college deductions, the college involved will send you the data on the qualifying expenses you've paid. If you plan to claim education deductions, you will need Form 1098-T from the institution. If you expect to deduct interest on student loans, get Form 1098-E from the lender.
Child-care expenses
You will need to keep this data.
Medical savings accounts
The institution handling the account will be able to generate any data.
Adoption expenses
You will need to track this data and be able to document these expenses.
Alimony paid
You or the authority disbursing funds will need to keep this data. To deduct this expense, you will need the recipient's Social Security number.
Sales-tax expenses
If you expect to claim a sales tax deduction on your 2007 tax return, you will need receipts for expenses. Or you can fill out a worksheet that the IRS provides to help estimate sales tax expenses.
Tax-return-preparation expenses and fees
Your preparer can furnish this data to you.
SELF-EMPLOYMENT DATA
K-1s on all partnerships
The partnership management should generate this data.
Receipts or documentation for business-related expenses
This is data you should keep and track.
Farm income
You or an accountant should tack this information. You will need to prepare Schedule F.
DEDUCTION DOCUMENTS
Federal, state and local estimated taxes paid for current year, including estimated tax vouchers, cancelled checks & other payment records
You must keep copies of this data and track it.
IRA, Keogh & other retirement plan contributions
You can get this information from your financial institutions.
Medical expenses
You must track this data.
CASUALTY OR THEFT LOSSES
Other miscellaneous deductions
You will need to file Form 4684.
Updated Dec. 10, 2008
Tuesday, March 24, 2009
HOME BUYER SEMINAR (Post 3) - Finding Your New Home!!
O.K. – so now we need to find you a home! You’ve already been pre-approved by your Lender, so we know about what price range you qualify for, and want to purchase in. You’ve also already chosen your REALTOR.
Your REALTOR needs to know both your needs and wants in a home. You can relay this information to them by meeting with them, through a phone conversation, or by describing these things in an email. On my website, I also have a form that you can fill out – that will prompt you for the needed information. Your REALTOR will want to know for instance, how many bedrooms and baths you will need – about what amount of square footage you might want – the age of the home you would be interested in (do you like vintage homes, or do you want a more modern home) – if you are o.k. with a “fixer-upper” or need to have the home closer to “move-in” condition – what areas or neighborhoods you like – related to that, what school system do you prefer – what size of lot do you prefer – even, how busy the road is in case you have children or pets – are there types of construction that you prefer (conventional frame, modular, manufactured, mobile) – do you want a garage, a basement, a family room, a fireplace, etc.
Armed with this information, your REALTOR will begin to set up your “search” on the computer. They are searching the entire MLS (Multiple Listing Service). The MLS is a single system that every participating Real Estate Agency places their listings into. We “share” our listing information, and the ability for ANY agent to show and sell that property. The MLS is the broadest representation of properties for sale in any particular area. You should understand that -- even though there are many Real Estate Agencies, a single REALTOR can help you to purchase ANY home that is in the MLS. Sometimes people unfamiliar will think that the agent can only show their own listings, or those of their firm and that is not the case.
So once your search is completely set up, it is usually emailed to you. You will be able to examine lots of detailed information about each property and look at photos and hopefully a Virtual Tour. Personally, when I set a new client up on a computer search, I will also set them up on "auto email". This feature allows my client to receive all “new listings” that continue to hit the market after I’ve sent them their initial search. You will receive these listings one by one, just minutes after they hit the market! I will also receive notification of what you are receiving so that I am up to speed on your search, and so that I can give you any additional information that I might be aware of.
Now your REALTOR knows you and knows what you are looking for, and if they are on the ball, they may be able to benefit you by letting you know about homes that are just coming onto the market – before too many other buyers know about them. In our office we spread the word amongst one another the moment we list a new home – and this could be days before this home gets into the computer system. :}
You will review your list of homes, choose the ones that you like best, drive by the homes to see that you like the neighborhood, and then ask your REALTOR to set up showing appointments. Most often your REALTOR will need at least one day ahead to get these appointments set up with the owners of the homes.
When we tour the homes we will look for both good and bad elements. Your REALTOR should have a Sellers Disclosure on hand during your showings. We’ll look specifically at that for clues to any concerning items such as a leaky roof or basement. As you tour more and more homes you will get a better sense of what you really like – and your REALTOR will be paying attention so that they can help find that perfect one for you.
Little by little we will fine tune your search, and hopefully shortly we will walk into the one you think could become YOUR home. Next week we’ll talk about making an offer on it!
Lets get out there and look at some homes! ~ Liz
Your REALTOR needs to know both your needs and wants in a home. You can relay this information to them by meeting with them, through a phone conversation, or by describing these things in an email. On my website, I also have a form that you can fill out – that will prompt you for the needed information. Your REALTOR will want to know for instance, how many bedrooms and baths you will need – about what amount of square footage you might want – the age of the home you would be interested in (do you like vintage homes, or do you want a more modern home) – if you are o.k. with a “fixer-upper” or need to have the home closer to “move-in” condition – what areas or neighborhoods you like – related to that, what school system do you prefer – what size of lot do you prefer – even, how busy the road is in case you have children or pets – are there types of construction that you prefer (conventional frame, modular, manufactured, mobile) – do you want a garage, a basement, a family room, a fireplace, etc.
Armed with this information, your REALTOR will begin to set up your “search” on the computer. They are searching the entire MLS (Multiple Listing Service). The MLS is a single system that every participating Real Estate Agency places their listings into. We “share” our listing information, and the ability for ANY agent to show and sell that property. The MLS is the broadest representation of properties for sale in any particular area. You should understand that -- even though there are many Real Estate Agencies, a single REALTOR can help you to purchase ANY home that is in the MLS. Sometimes people unfamiliar will think that the agent can only show their own listings, or those of their firm and that is not the case.
So once your search is completely set up, it is usually emailed to you. You will be able to examine lots of detailed information about each property and look at photos and hopefully a Virtual Tour. Personally, when I set a new client up on a computer search, I will also set them up on "auto email". This feature allows my client to receive all “new listings” that continue to hit the market after I’ve sent them their initial search. You will receive these listings one by one, just minutes after they hit the market! I will also receive notification of what you are receiving so that I am up to speed on your search, and so that I can give you any additional information that I might be aware of.
Now your REALTOR knows you and knows what you are looking for, and if they are on the ball, they may be able to benefit you by letting you know about homes that are just coming onto the market – before too many other buyers know about them. In our office we spread the word amongst one another the moment we list a new home – and this could be days before this home gets into the computer system. :}
You will review your list of homes, choose the ones that you like best, drive by the homes to see that you like the neighborhood, and then ask your REALTOR to set up showing appointments. Most often your REALTOR will need at least one day ahead to get these appointments set up with the owners of the homes.
When we tour the homes we will look for both good and bad elements. Your REALTOR should have a Sellers Disclosure on hand during your showings. We’ll look specifically at that for clues to any concerning items such as a leaky roof or basement. As you tour more and more homes you will get a better sense of what you really like – and your REALTOR will be paying attention so that they can help find that perfect one for you.
Little by little we will fine tune your search, and hopefully shortly we will walk into the one you think could become YOUR home. Next week we’ll talk about making an offer on it!
Lets get out there and look at some homes! ~ Liz
Monday, March 16, 2009
HOME BUYER SEMINAR (Post 2) - Choose a GOOD REALTOR!
Recently I was explaining the process of home buying to a couple of first time home buyers that were feeling somewhat overwhelmed understanding the “whole process”. I found myself boiling it down to the fact that – if they found themselves a good Lender and a good REALTOR – they’d do just fine. I really believe that. It’s like any other time you might employ a professional -- getting dry-walling done –- having surgery -- or fighting a court battle. It only makes sense to employ an expert. We all know that choosing the right professional can make a huge difference in your overall experience.
Your REALTOR should be someone you like, and trust, and that know
s their stuff. Its really important that your REALTOR have sufficient experience because they are going to be: helping you locate and then critique properties, supplying you with market data, writing an offer that protects your interests, negotiating successfully for you, being creative in solving a variety of problems that could arise, and effectively and efficiently closing the deal for you. Remember, your REALTOR doesn’t just get keys and open houses for you. They will likely spend several months helping you with a variety of tasks.
I’m very protective of my Buyers. I don’t think of what I do as “selling” them a home. Instead I provide them with a full array of services, so that they can locate the correct home and ultimately have the confidence that they made an intelligent buying decision.
A referral is a great way to find a good Realtor. Another manner is to look in the local Homes Book even. Look at whether the Realtor has certain credentials, seems to do a fair amount of business, has a website, email, etc. It seems incomprehensible today, but some REALTORS may not know how to email you listings! Another way to see if they are internet savvy would be to simply Google one – try something like Marquette MI Realtor. Checking out a REALTORS’ personal website can tell you so much about their expertise, and give you a personal feel for that agent. Visit me at www.BuyMarquette.com!
As far as credentials go--- many of us have lots of initials after our names. The more initials, the more education basically. A common designation is an ABR (Accredited Buyers Representative). Another very desireable designation is that of Assoc. Broker (one of the highest educational markers). Others may be GRI (Graduate Realtor Institute), CRS (Certified Residential Specialist) or EPro – Internet Proficiency.
Your REALTOR may spend several months working with you. They may spend many of their summer evenings and Saturday afternoons helping you to see the homes you want. In exchange for their professional assistance, they are hoping that one day they will receive compensation for their time spent. You have a right to find the correct REALTOR for you. You do not HAVE to work with the first one you speak to. However, it becomes much less complicated if you will set out to find the right professional for you and then be loyal to them. REALTORS work within a Code of Ethics, which among other things requires us to inquire about whether or not our buyers are already working with another agent, and sometimes requires us to pay another agent a portion of our commission because they may have had some previous contact with you. So, it just makes sense to find the “right” partner early on and then stick with them.
I'd love to be your Buyers Agent!
Stay tuned -- I'll see you next week ~ Liz
Your REALTOR should be someone you like, and trust, and that know
s their stuff. Its really important that your REALTOR have sufficient experience because they are going to be: helping you locate and then critique properties, supplying you with market data, writing an offer that protects your interests, negotiating successfully for you, being creative in solving a variety of problems that could arise, and effectively and efficiently closing the deal for you. Remember, your REALTOR doesn’t just get keys and open houses for you. They will likely spend several months helping you with a variety of tasks.I’m very protective of my Buyers. I don’t think of what I do as “selling” them a home. Instead I provide them with a full array of services, so that they can locate the correct home and ultimately have the confidence that they made an intelligent buying decision.
A referral is a great way to find a good Realtor. Another manner is to look in the local Homes Book even. Look at whether the Realtor has certain credentials, seems to do a fair amount of business, has a website, email, etc. It seems incomprehensible today, but some REALTORS may not know how to email you listings! Another way to see if they are internet savvy would be to simply Google one – try something like Marquette MI Realtor. Checking out a REALTORS’ personal website can tell you so much about their expertise, and give you a personal feel for that agent. Visit me at www.BuyMarquette.com!
As far as credentials go--- many of us have lots of initials after our names. The more initials, the more education basically. A common designation is an ABR (Accredited Buyers Representative). Another very desireable designation is that of Assoc. Broker (one of the highest educational markers). Others may be GRI (Graduate Realtor Institute), CRS (Certified Residential Specialist) or EPro – Internet Proficiency.
Your REALTOR may spend several months working with you. They may spend many of their summer evenings and Saturday afternoons helping you to see the homes you want. In exchange for their professional assistance, they are hoping that one day they will receive compensation for their time spent. You have a right to find the correct REALTOR for you. You do not HAVE to work with the first one you speak to. However, it becomes much less complicated if you will set out to find the right professional for you and then be loyal to them. REALTORS work within a Code of Ethics, which among other things requires us to inquire about whether or not our buyers are already working with another agent, and sometimes requires us to pay another agent a portion of our commission because they may have had some previous contact with you. So, it just makes sense to find the “right” partner early on and then stick with them.
I'd love to be your Buyers Agent!
Stay tuned -- I'll see you next week ~ Liz
Monday, March 2, 2009
Home Buyer Seminar (Post 1)- Ten Steps to Buying a Home
WELCOME TO MY FIRST ENTRY IN THE ONLINE HOME BUYER SEMINAR. I HOPE YOU ENJOY THIS! PLEASE EMAIL ME WITH ANY COMMENTS, AND ALSO SEND ALONG ANY QUESTIONS YOU MAY HAVE!
~ Liz
You Want to Buy a Home!
Buying a home is one of the most significant financial decisions any one of us will ever make. And yet, it’s much more than just a financial decision. Many factors will play in to your home buying decision, such as price, location, your personal needs and wants, and how long you intend to stay in this home, for starters.
I have outlined below 10 steps to Purchasing Your New Home:
1) Get Pre-approved by a Lender
Unless you are paying cash, you are going to have to get a mortgage, to buy a home. You begin this process with a simple conversation with a lender of your choice. Your REALTOR may be able to point you to several lenders that they have had positive experiences with. Your lender will be able to tell you what price range you qualify for, so that you can begin shopping for homes that will fit for you. Did you know that the second item on a Purchase Agreement is a paragraph that asks, what type of loan you are going to be getting, and also whether or not you are pre-approved? Getting pre-approved can oftentimes save you money. Picture the following scenario: A seller has two offers come in at the same time. One buyer is pre-approved. The second buyer has offered $1000. more, but his/her purchase agreement says, that they will go to the bank within the next 10 days to see if they can get pre-approved. Which offer do you think the seller is likely to favor?? The one where the buyer is already Pre-Approved!
2) Find a Qualified Buyers Representative
Before you do anything else, find the professionals that will help you to purchase your home. Your lender and your REALTOR. Your REALTOR should be someone that you like and trust, and that will work hard for you. A Buyers Representative is a REALTOR that is working for you, the Buyer. Look for a REALTOR that has the designation of an ABR (Accredited Buyers Representative). You might also want to determine that your REALTOR has satisfactory experience. Your REALTOR doesn’t just schedule showings for you; they must be able to craft a good purchase agreement, with sufficient provisions to protect their client. They should know the market. They should be able to provide you with sales data that helps you to determine the price you should be offering. You may want them to be competent enough with technology so that they can provide you with up to the minute listings. Basically, they are going to be the one helping you find a home, negotiate a purchase agreement, and follow up on all aspects of your closing. Finding the right REALTOR can make this a better, more enjoyable, experience for you all the way around.
3) Assess your Wants and Needs
Start writing down what you really consider NEEDS, and also what you WANT in a home. You may not get all of the “wants” but you should strive to get all of your “needs”. If you are a couple, write them down separately and then see how you match up. The process is definitely a give-and-take one. Your REALTOR can set up a search of homes for you that closely match these items.
4) Shop for a Home
Your REALTOR will listen to what you want and need in a home and supply a list of homes to you for your review. Usually your REALTOR will need one day ahead to schedule showings for you. As you begin to tour homes, you will begin to get a sense of what you like and dislike and your REALTOR will too! Soon you’ll find the one that fits.
5) Negotiate Terms
Once you find the home you want you will work with your REALTOR to put together your Offer. Purchase Agreements are always written. They contain items such as: how much you are offering, the type of loan you will be getting, when you want to close, when you will take occupancy, what personal property you are asking for, inspections and tests, title work, prorating taxes, rebates from the seller, and any other items particular to that sale.
6) Obtain your Mortgage
After we have successfully negotiated a deal on the home that you want, I always say to my clients, “Now is the time to keep your lender happy!” Now your lender will direct you to give them additional information that they might need to further your mortgage.
7) Prepare for the Closing
Together we will be going through the steps outlined in your purchase agreement. Most closing periods are about 30 days. The first thing we do is make sure your loan is all set. Then you will schedule your inspection. If that turns out o.k., then we will have your lender schedule the appraisal. Your REALTOR will receive the title work on your home and review it with you, along with your lender. The deed will be ordered. You will secure your Home Owners Insurance. When the closing day is determined, then you will call to switch utilities into your name and we will plan to meet at the bank! We may also want to do a final walk through of the home before closing.
8) Actual Closing
Generally the title company or the lender will conduct the closing. They will be in touch with you to make certain that you know how much money (if any) you need to bring to the closing table, and any other items that you will need.
9) Move
It is the norm in our area, to receive immediate occupancy upon close. This means, you get the keys to your new home at the closing table and you get to go right there!! It’s YOURS!
10) CELEBRATE!
I also have a Homebuyer’s Toolkit that is published by REBAC, the Real Estate Buyer’s Agent Council. This booklet also details all the steps to purchasing a home. I would be happy to mail you a copy of this booklet, if you would like to call or email me with your mailing address.
Buying a home is one of the most significant financial decisions any one of us will ever make. And yet, it’s much more than just a financial decision. Many factors will play in to your home buying decision, such as price, location, your personal needs and wants, and how long you intend to stay in this home, for starters.
I have outlined below 10 steps to Purchasing Your New Home:
1) Get Pre-approved by a Lender
Unless you are paying cash, you are going to have to get a mortgage, to buy a home. You begin this process with a simple conversation with a lender of your choice. Your REALTOR may be able to point you to several lenders that they have had positive experiences with. Your lender will be able to tell you what price range you qualify for, so that you can begin shopping for homes that will fit for you. Did you know that the second item on a Purchase Agreement is a paragraph that asks, what type of loan you are going to be getting, and also whether or not you are pre-approved? Getting pre-approved can oftentimes save you money. Picture the following scenario: A seller has two offers come in at the same time. One buyer is pre-approved. The second buyer has offered $1000. more, but his/her purchase agreement says, that they will go to the bank within the next 10 days to see if they can get pre-approved. Which offer do you think the seller is likely to favor?? The one where the buyer is already Pre-Approved!
2) Find a Qualified Buyers Representative
Before you do anything else, find the professionals that will help you to purchase your home. Your lender and your REALTOR. Your REALTOR should be someone that you like and trust, and that will work hard for you. A Buyers Representative is a REALTOR that is working for you, the Buyer. Look for a REALTOR that has the designation of an ABR (Accredited Buyers Representative). You might also want to determine that your REALTOR has satisfactory experience. Your REALTOR doesn’t just schedule showings for you; they must be able to craft a good purchase agreement, with sufficient provisions to protect their client. They should know the market. They should be able to provide you with sales data that helps you to determine the price you should be offering. You may want them to be competent enough with technology so that they can provide you with up to the minute listings. Basically, they are going to be the one helping you find a home, negotiate a purchase agreement, and follow up on all aspects of your closing. Finding the right REALTOR can make this a better, more enjoyable, experience for you all the way around.
3) Assess your Wants and Needs
Start writing down what you really consider NEEDS, and also what you WANT in a home. You may not get all of the “wants” but you should strive to get all of your “needs”. If you are a couple, write them down separately and then see how you match up. The process is definitely a give-and-take one. Your REALTOR can set up a search of homes for you that closely match these items.
4) Shop for a Home
Your REALTOR will listen to what you want and need in a home and supply a list of homes to you for your review. Usually your REALTOR will need one day ahead to schedule showings for you. As you begin to tour homes, you will begin to get a sense of what you like and dislike and your REALTOR will too! Soon you’ll find the one that fits.
5) Negotiate Terms
Once you find the home you want you will work with your REALTOR to put together your Offer. Purchase Agreements are always written. They contain items such as: how much you are offering, the type of loan you will be getting, when you want to close, when you will take occupancy, what personal property you are asking for, inspections and tests, title work, prorating taxes, rebates from the seller, and any other items particular to that sale.
6) Obtain your Mortgage
After we have successfully negotiated a deal on the home that you want, I always say to my clients, “Now is the time to keep your lender happy!” Now your lender will direct you to give them additional information that they might need to further your mortgage.
7) Prepare for the Closing
Together we will be going through the steps outlined in your purchase agreement. Most closing periods are about 30 days. The first thing we do is make sure your loan is all set. Then you will schedule your inspection. If that turns out o.k., then we will have your lender schedule the appraisal. Your REALTOR will receive the title work on your home and review it with you, along with your lender. The deed will be ordered. You will secure your Home Owners Insurance. When the closing day is determined, then you will call to switch utilities into your name and we will plan to meet at the bank! We may also want to do a final walk through of the home before closing.
8) Actual Closing
Generally the title company or the lender will conduct the closing. They will be in touch with you to make certain that you know how much money (if any) you need to bring to the closing table, and any other items that you will need.
9) Move
It is the norm in our area, to receive immediate occupancy upon close. This means, you get the keys to your new home at the closing table and you get to go right there!! It’s YOURS!
10) CELEBRATE!
I also have a Homebuyer’s Toolkit that is published by REBAC, the Real Estate Buyer’s Agent Council. This booklet also details all the steps to purchasing a home. I would be happy to mail you a copy of this booklet, if you would like to call or email me with your mailing address.
There’s a lot to this, but its loads of fun too! ~ Liz
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