Many people contact me requesting how to buy their first home. The process can seem to be a daunting task if you have never been through the process. With many people getting tax refunds this time of year lends itself to funds needed to assist in your first purchase. So where does one begin?
The Lender
Well unless you have a large amount saved up and can pay cash for your new home then you will need to find a great lender. I am currently recommending Christy Drake at Brand Mortgage in Douglasville, Ga (770-402-5600). A good lender will evaluate your financial condition and let you know quickly if you can qualify for a mortgage. The mortgage person will determine if you need down payment assistance, if you can do an FHA loan or maybe you have a VA eligibilty. There are also many grant programs out there to assist you down payment as well so become close friends with your lender.
Once the lender has gone over your information and can issue a prequalification letter you are now ready to begin your home search. An experienced real estate agent can identify you dream home and setting up showings. So now since you have talked to a lender you now know how much house you can afford and be more prepared now while viewing homes.
Keep it simple.
Looking at too many properties can overwhelm the first time buyer. It’s a process so maybe limit yourself to 4-6 properties in a day so that you can keep clear in your mind the properties you viewed that day. Also, go home and rank the properties of yes, no and maybe. Write down what you liked about each one and what you didn’t. This information will help your agent in his next search.
The Offer
Once the the right house is decided on an offer should be your next move. You should ask your agent on what he or she recommends on an offer price and the agent can give you valuable inside knowledge of recent sales and should have a good idea of the market value. The agent will also be able to ask in the offer closing costs paid by seller, inspection time, appraisal contingency and time to ask for repairs if needed among other things. The owner can say no to requests right but it’s better to ask first.
The Acceptance
If the offer is accepted, great! But now you will have to deposit your earnest money in the Broker’s bank account. You will also need to make loan application. Remember it could take 30-45 days to close the deal.
Due Diligence
You should have asked for a time in your contract to inspect the property with in the due diligence time period. It is typical that you get 10-15 days to get inspections for termites, total house, mold, radon, survey, septic tank inspection, repair estimates, connections to sewer or water connections to name a few. Be sure you are comfortable with your inspections before your time limit is up and also if you have any issues of what may be found then be sure to have your agent negotiate monetary remedies or repairs.
The Appraisal
Appraisals have become a huge hurdle with transactions in the past few years. With so many foreclosures hitting the market, these sales are recent comparables for appraiser which can be much lower that what your are purchasing. These low sales can affect the market value of what you are buying and your lender will not lend more than what the home appraises for. So be sure to have an appraisal contingency to protect your earnest money.
The Closing
Once all contingencies are met and satisfied you can prepare to close. The closing attorney should have a title search working and close to completion. The title search will verify clear title and should reveal any liens on the property that must be paid by the seller at or prior to closing. Contact you lender prior to closing to verify the amound of money to take to the closing and go over the preliminary closing statment with your agent and lender. At the closing table, be sure you have your insurance policy for one year, your certified check for the amount you have to bring to closing, your checkbook for any small overages and a photo id. Ask the closing attorney about title insurance. This is a one time policy that protects you from title disputes and well worth the money.
Enjoy Your New Home
That’s the purchase in a nut shell. Of course that is a simplified overview of the purchase process but with a little patience and a good team of professionals behind you, you should be able to find and close the perfect home. Hopfully with that new tax refund you just may be able to do just that!
West Atlanta Real Estate Experts
Chip Hurst is a local real estate agent in the West Atlanta Area. Maximum One Realty of Greater Atlanta is unlike most real estate companies that force you to do things one way or their way, we believe you should have choices to pick and choose what best fits your individual needs. We are always looking for new ways to make and West Atlanta real estate more efficient AND without sacrificing quality or service. If you’re looking to buy a home in West Atlanta or sell your existing West Atlanta property, we will be happy to take care of your real estate needs. Our mission is to provide outstanding customer service while utilizing the best practices and systems available. For more information about List! Buy! Save! real estate services and how we can best serve you, please fill out the online contact form or give us call today! Chip Hurst Maximum One Realty Greater Atlanta770.294.9976 Mobile
Hurstch@bellsouth.net
www.WestAtlantaRealEstate.com