Thinking of Buying a Home?

Buying a new construction home or an older home? WE ARE HERE TO HELP.  We will walk you through the entire process of buying a home. As you may know, this service is normally FREE to buyers since buyer's agents are directly paid by the sellers from their net profit after the transaction is complete.  Some sellers may not offer a commission to buyer's agent (this is an unusual case) and your agent may ask you to pay for their services. 
 

BUYER'S CHECKLIST

APPROVAL LETTER FROM YOUR MORTGAGE LENDER

• contact your lender or any local mortgage lender to get pre-qualified
• most seller require a pre-approval letter to view their homes.  
• the approval letter is also required when you submit an offer, the lender's info and type of loan will be listed on the contract (VA, Conventional, FHA) 
• ask your mortgage lender if you'll need a downpayment (downpayment is listed on the contract). Possible downpayment based on your loan -  FHA 3.5% of purchase price, Conventional 5% or more, VA or VHDA 0% 
• ask your mortgage lender how much you'll need for closing cost (normally, 2-5% of the purchase price) 
• Ask your lender if your approval is good for a house, townhouse or condo. Some lenders will lower your approval amount on condo units because of the additional condo fees
• your lender will request all the required documents to approve your loan which may include 2 -3 years tax return, W2s, paystubs, LES, bank statements, lease agreements, and any other documents they may deem necessary to approve your loan
• if paying by cash, contact your bank to request a "proof of fund" letter, must be dated within 30 days
• when you have submitted all your loan documents and have been completely pre-approved then you are ready to look for some houses

WHAT'S NEXT?

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Contract Deposit also known as EARNEST MONEY DEPOSIT

• have an "earnest money deposit" (EMD) ready, this is a contract requirement, 1% of purchase price should be enough but it depends on the listing firm and seller's requirement 
• the EMD amount will be listed on the contract and can go towards your closing cost, downpayment or refunded back to you at closing. 
• the EMD will need to be made payable to a closing attorney, title company of your choice or listing firm and buyer may use a personal check, cashier's check, money order or wire transfer (this will be on the contract)

NOW THAT YOU HAVE THE TICKET (PRE-APPROVAL LETTER), YOU'RE READY TO SCHEDULE TO SEE SOME HOUSES

• if you see a home within your price point, schedule to see it and if you love it then it's best to submit an offer asap
• provide us your availability to see some homes
• provide M & M Realty your house wish list so we can find and schedule homes for you to consider
• what is your budget? just because the lender says you approved for a certain amount, you alone knows your maximum budget that you can afford
• what neighborhood, city, zip code, how far do you want to be from work place
• what school district (if needed)
• how many bedrooms, bath, sqft, 1-2 story, garage, fenced yard, near water, pool, etc.

SOMETHING TO CONSIDER

• home inspection  - this is an upfront cost (between $300-$500) your choice of company, the inspection will give you a detail inspection of the home you are buying, you also have the option to buy a 1 year home warranty and waive the home inspection.
• home waranty - normally about $500-$600 a year depending on what company you choose, this can be paid at closing, paid by you or you can ask the seller to pay it at closing.

Your offer should be attractive enough for sellers to consider it.  We will make sure to give you enough info to help achieve your goal of owning a home.

WHEN CAN I MOVE INTO MY NEW HOME? 

• when your offer is accepted by the seller and ratified (all parties agreed and signed), it may take up to 30-45 days to closing day, that's a normal processing time for lawyers and lenders.
• CLOSING DAY - that's when you sign all the loan documents, legal paperwork and that's the day you get the keys to your new home.

I THINK I COVER THE IMPORTANT PART OF THE PROCESS... NO WORRIES, I WILL BE HERE TO WALK YOU THROUGH THE ENTIRE CLOSING PROCESS

ANY OTHER QUESTION? PLEASE FEEL FREE TO CONNECT WITH ERMA

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