Buyers
Guide
What you need to know about buying a home
Curious about the value
Buying = Commitment
Buying a home, whether it’s your first, second, or third, is a serious commitment. This rings true even when you’re looking to purchase in one of the hottest housing markets — the most sought after New England Seacoast area.
With your real estate needs in mind, these steps are here to help ease the transition as you start canvassing for available homes along the coastline and up to the actual day of moving in to your new abode.
We begin the process of home buying with a set of stages. Take a peek below to see what the buying process entails.
01. Getting started
We start every home buying process with the proper research and preparation. Your checklist for this stage includes the following goals:
- Determine the type of home you want
- Determine where you want to live
- Prepare your finances
04. Find a realtor
Having an experienced real estate agent that gets your real estate needs and goals makes the whole home buying process easier. The question is, how do you find one that’s compatible with you?
For starters, your real estate agent should have the following qualifications:
- License and, if possible, certification/s
- Experience in your chosen community
- References
Most importantly, a communication style that jives with your own.
07. Making an Offer
Once you’ve found your dream Decatur house in Atlanta, Georgia real estate, it’s time to make an offer the home seller won’t be able to resist.
Read more about making an offer here.
02. Decide on a home
Before you look for a home, you should know the type of property you’re after. Is it a condo that meets your needs and preferences? Or is it a single-family home that fits your long-term goals?
Read more about finding the perfect home here.
05. Pre-Approval
A pre-approval letter in your hands can turn the home offers you make into irresistible invitations. So before you start looking for a home, getting your finances in order is crucial.
Shopping for a loan and getting pre-approved are best done a month or two ahead of your home search. Sorting out your finances can take some time. Try to remember that the application for a mortgage pre-approval takes approximately 45 days.
Read more about the pre-approval process here.
08. Time to Close
Once the seller accepts your offer and a purchase agreement has been signed, it’s time to move on to the closing process. This can take up to a month or so, depending on what’s been agreed during negotiations.
Read more about the closing process here
03. Location, Location...
Location! In real estate, location is everything. It affects the value of the property and, in turn, home prices. Additionally, where you live directly affects your lifestyle. Living right in the center of the city allows you to be where the action is, while choosing the suburbs can give you some peace and quiet.
06. Home Shopping
The home search is definitely the favorite stage for plenty of home buyers. After all, this is the time when you get to look at properties, attend open houses, and potentially find your dream home. There are many ways to narrow down the home search. The most effective would be to concentrate on these points:
- Your price range
- Your target neighborhood or area
- Your target property type
09. Let's Move In!
Congratulations on your new home! Now, it’s time for you to move in. You might have already started while you were in escrow, which should make this final stage easier.
CALCULATE YOUR MORTGAGE
Calculate what you can afford in today’s real estate market.
*Calculators provided are for estimating purposes only. Consult with your lender to determine precise payment requirements.
Your total monthly payment
Principal & Interest
Finding the Perfect Home
Picking the Perfect Home
Before you look for a home, you should know the type of property you’re after. Is it a condo that meets your needs and preferences? Or is it a single-family home that fits your long-term goals…
-
annual income
monthly expenses
debt-to-income ratio
Non-Negotiables
List down features that you absolutely need to have in your new home. If you’re moving in with school-age children, you’ll want to find a home near great schools. A good size yard, as well as enough room for the rest of the family could also top your list.
Other considerations are proximity to your work and community services, square footage and number of rooms.
Age of the Property
New England’s Seacoast boasts both Historic homes and new construction. A resale property might be the one that you need with a few minor tweaks. But if you’re after a brand-new, move-in property, consider buying new construction.
COASTAL MAINE & NEW HAMPSHIRE REALTOR®
ANNE POPE
anne.pope@beangroup.com
o. (800) 450-7784 ext. 7291
c. (603) 828-1316
www.AnnePopeRealtor.com
o. (800) 450-7784 ext. 7291
c. (603) 828-1316
www.AnnePopeRealtor.com
Types of Mortgages
As a buyer, you’re open to apply for different kinds of mortgages, so long as you meet the requirements.
Some of the most common home loans in the market include the following:
Some of the most common home loans in the market include the following:
Fixed-Rate
Fixed-rate mortgages – Buyers who prefer stable interest rates often get fixed-rate loans. They are usually paid off in a specific set of time (10 to 30 years) at a specific interest rate.
Adjustable-Rate
Adjustable-rate mortgages– ARMs are attractive as they offer initial lower rates. Unlike fixed-rate mortgages, however, the interest rate is subject to market indicators after the adjustment period. There is no telling whether your interest rate will increase or decrease.
FHA Loan
FHA loans – Backed by the Federal Housing Administration, FHA loans are ideal for first-time home buyers. It’s also a popular choice among those with less-than-stellar credit scores.
VA Loan
VA loans – VA loans are only offered to veterans, those who are active in the military, and their respective families provided they meet the qualifications.
Elements of a Great Offer
A great offer has several components, some of which should already be in your arsenal.
These include:
These include:
Your pre-approval letter
Express your enthusiasm and seriousness in purchasing the home by adding this to the offer.
The right price
Depending on the market, your offer can be below or more than the asking price. A comparative market analysis takes a look at similar properties in the area (called “comparables”) that were recently sold. It will help you set a reasonable offer.
Write an earnest money check
Adding an earnest money deposit strengthens your offer, giving the seller more confidence to accept it. And if that is the case, the money automatically becomes a part of your down payment.
Include a personal letter
A personal note allows the home seller to get to know the buyer. After all, money might be attractive, but a heartfelt note can seal the deal. Introduce yourself and state your good intentions. It also helps to identify the home features that are important to the seller. Highlight these in your letter by mentioning how it can improve your lifestyle. By doing so, the seller can relate to you.
The Closing Process
Rome wasn’t built in a day … and closing on a house certainly doesn’t happen that quickly either.
There are many components which go into the closing process. As the buyer, you have several tasks ahead of you while you’re in escrow.
There are many components which go into the closing process. As the buyer, you have several tasks ahead of you while you’re in escrow.
Tasks
- Finalize your loan application
- Meet contingencies stated in the sales contract (includes home appraisal and inspection)
- Review your HUD-1 settlement statement
- Start packing up
- Collect all related documents needed for closing day
- Purchase title insurance
Before closing day, perform a final walk-through of the property with the seller and review all paperwork. Signing papers and transfer of title will formally be done on the actual closing day. This guide will help you navigate this final step in the home buying process.
But, wait! What happens if all obligations weren’t fulfilled within the given time period? You and the seller can agree to delay closing day or even cancel the whole transaction. In case of the latter, your down payment will be returned to you.
