Thinking About Buying?
Buying a home can be very exciting, as well as a significant financial decision. Furthermore, depending on today’s market, your finances, and other circumstances; you might have in your hands the right opportunity to purchase a home.
At southern luxe realty it is of vital importance that our clients get familiar with the purchasing process, and from that viewpoint, make the best and smartest decisions along the way.
Investing? Relocating? Don’t want to rent anymore? Looking for an Upgrade?…
Regardless of your reasons for buying, it is a major commitment and you need to be sure if homeownership is right for you. Here are some things to consider before purchasing a property:
- How long do I plan to stay there?
- How much house can I afford?
- Am I at the right spot financially?
- Am I going to take out a loan?
- How much do I have saved for a down payment?
- Can I afford my desired neighborhood?
- Are home values increasing or decreasing in the neighborhood?
- How long will my commute take?
- Is the school district a fit for my family?
- How far from amenities and activities do I want to be?
Once you get the right feeling about these questions you can start preparing to buy. A great beginning in the buying process starts with a clear idea of what you want your house to be and how does it align with your financial goals.
Organizing Your Finances
This is the first part of the process, making sure you’re at the right place and right time financially.
1.
Gather the Proper Documentation
Start by creating a file with financial statements, a list of bank accounts, investments, credit cards, loans, pay stubs, tax returns of last two years, leases and other financial information. It will be easier for you to have it all accessible for when you need it.
2.
Check Your Credit Score
Credit scores are used to evaluate the potential risk of lending to you. The higher the number is, which runs from 300 to 850, the better your score. According to the “consumer financial protection bureau” the best mortgage rates go to the ones with credit scores in the mid- to high-700s or above.
3.
Get Pre-approved
One of the The best ways to know you’re in the right place to purchase a home is contacting a professional. A lender can answer your questions regarding how much house you can afford, what type of loan will suit you best, what decisions can help strengthen your financial situation, and most important, demonstrate that you can secure a loan when you’re ready to make an offer on a house.
It’s always best to get estimates from multiple lenders so you can compare interest rates and fees before actually opening your mortgage. After getting pre-approved you will receive a letter that validates your financial stability. It’s important that you show this to your real estate broker.
Be mindful of your economic decisions
Before taking on a new financial responsibility make sure it impacts your life positively. Take your time to research, build up a budget, clear some debts, and take action on your financial stability.
Buying a home doesn’t have to be that hard, and it won’t be with the right person by your side.
Why should I use a real estate broker?
There are many advantages that involve having a real state broker when buying or selling a home:
- Filling out correctly and overseeing important paperwork
- knows when to argue for a lower price and how to negotiate contingencies and repairs
- Makes sure everything happens according to your schedule
- A good broker can help you make sound decisions and guide you through the home buying/selling process.
- Gives you access to homes as soon as they hit the market
- identifies home value trends, new developments, buyer demand and overall state of the market
- determines what a home is worth and recommends a competitive initial offer amount
Why should I use a real estate broker?
There are many advantages that involve having a real state broker when buying or selling a home:
- Filling out correctly and overseeing important paperwork
- knows when to argue for a lower price and how to negotiate contingencies and repairs
- Makes sure everything happens according to your schedule
- A good broker can help you make sound decisions and guide you through the home buying/selling process.
- Gives you access to homes as soon as they hit the market
- identifies home value trends, new developments, buyer demand and overall state of the market
- determines what a home is worth and recommends a competitive initial offer amount
Having a broker takes many responsabilities off your shoulders so you are able to focus on making the right decisions when putting in an offer or accepting one.
Here are some factors to consider when choosing a real state broker to represent you:
- Look for real state professional with experience completing transactions similar to yours and in the same area you’re looking to buy or sell.
- Interview at least three agents. Are they confident on what they say?
- Ask about their time availability and if they are willing to work with your schedule
- Ask about their knowledge of the market trends, their credentials and previous experiences.
- Does the agent actively engage with you? Does the agent return your calls promptly?
- A good agent always looks out for your best interests
- Does she/he listens attentively to your needs and concerns?
- Pick somebody with whom you feel comfortable.
Here are some factors to consider when choosing a real state broker to represent you:
- Look for real state professionals with experience completing transactions similar to yours and in the same area you’re looking to buy or sell.
- Interview at least three agents, are they confident on what they say?.
- Ask about their time availability and if they are willing to work with your schedule.
- Ask about their knowledge of the market trends, their credentials and previous experiences.
- Does the agent actively engages with you? Does the agent return your calls promptly?
- A good agent always looks out for your best interests
- Does she/he listens attentively to your needs and concerns?
- Pick somebody with whom you feel comfortable.
finding "the one"
Hunting for a house is very exciting! You can start by telling your real estate broker an idea of what you’re looking for and he/she will help you in the search of houses within your budget.
Take your time comparing properties, touring during showings, going to open houses, selecting favorites and getting the right feeling about a home before putting down an offer.
Here are some things you might want to consider when shopping for a house:
- Price
- Square footage
- Home condition and possible need for repairs
- Access to public transportation
- Number of bedrooms
- Outdoor areas and swimming pools
- Local amenities and activities
- Local school district ranking
- Property and neighborhood value trends
- Property/real estate taxes
Here are some things you might want to consider when shopping for a house:
- Price
- Square footage
- Home condition and possible need for repairs
- Access to public transportation
- Number of bedrooms
- Outdoor areas and swimming pools
- Local amenities and activities
- Local school district ranking
- Property and neighborhood value trends
- Property/real estate taxes
Here are some things to be aware of when touring a home:
- Structural defects and cracking
- Water pressure (turn on faucets and shower heads)
- Electrical issues (try the light switches)
- Functionality and heat retention of doors and windows
- Roof and exterior quality
- Noise from neighbors or traffic
If you find a potential property, your real estate broker will help you analyze the market and prepare to negotiate when you are ready to put down an offer.
Here are some things to be aware of when touring a home:
- Structural defects and cracking
- Water pressure (turn on faucets and shower heads)
- Electrical issues (try the light switches)
- Functionality and heat retention of doors and windows
- Roof and exterior quality
- Noise from neighbors or traffic
If you find a potential property, your real estate broker will help you analyze the market and prepare to negotiate when you are ready to put down an offer.
Placing an offer
Once you’ve found the right home, your agent is most likely to recommend an offer based on a comparative market analysis (CMA). Calculating the home value by comparing recent sales in the same area.
As well as the CMA, here are some other things to take into consideration when making an offer:
After considering all these factors, your agent will help you determine a fair offer price and help you decide if you should leave some room for negotiation. Depending on the state of your real estate market, especially if it is highly competitive, being the first to make a solid offer can sometimes make a big difference. Here are 3 things that can make you stand out to a seller:
- Raising your down payment.
- Being flexible about the closing date.
- Being willing to waive contingencies.
After considering all these factors, your agent will help you determine a fair offer price and help you decide if you should leave some room for negotiation. Depending on the state of your real estate market, especially if it is highly competitive, being the first to make a solid offer can sometimes make a big difference. Here are 3 things that can make you stand out to a seller:
- Raising your down payment.
- Being flexible about the closing date.
- Being willing to waive contingencies.
Finally, when you place an offer, the seller can do one of the next three things: accept your offer, deny your offer or negotiate it. If your offer is accepted or if you negotiated and the seller chose your offer…
Congratulations! You’re a few steps away from homeownership.
Good work, You’re one step closer to the finish line!
The closing process begins by signing an initial agreement along with offering Due Diligence and Earnest Money to secure the deal with the seller. Your agent will help you set up inspections, negotiate repairs, secure your finances and ensure sure everything is ready for closing.
These are the most common things that may happen within the closing process of a real estate contract:
The closing process begins by signing an initial agreement along with offering Due Diligence and Earnest Money to secure the deal with the seller. Your agent will help you set up inspections, negotiate repairs, secure your finances and ensure sure everything is ready for closing.
These are the most common things that may happen within the closing process of a real estate contract:
Making a Home Inspection
During a home inspection, a licensed professional will go through the home and make sure it complies with standard specifications for a home to be considered safe to live in. The inspector will target problems, test electrical systems, make sure the roofing is safe and much more.
After the inspection is done, the inspector will contact you back to disclose information about the condition of the home. You might find out the home has minor, medium and/or major issues that will need to be addressed. If the home happens to have a serious problem (like mold, lead paint or structural damage) it will be of your interest to negotiate the repairs with the seller before the closing date. If you can’t reach an agreement you may consider to drop your offer and find other home options.
Tip #1
We recommend making a list of repairs prioritizing the issues that concern you the most and discuss it with your agent. This will help you evaluate repair costs you may want to negotiate with the seller or decide if you should or shouldn’t move forward with the purchase.
Tip #2
A smart move is to include a home inspection contingency in your purchase offer. This will give you the convenience of backing out of a purchase without losing your Due Diligence Money deposit if the home inspection exposes significant problems with the home.
Appraisals
A home appraisal is a process through which a real estate appraiser determines the fair market value of a home based on a combination of square footage measurements, building costs, recent sales of comparable properties, operating income, etc.
Lenders can’t award more money than a home is worth, therefore they request appraisals to confirm that their investment in your property is precise. If the appraised value happens to be lower than your offer, it might be difficult to get financing.
It is crucial to be in constant communication with your agent and lender. They will let you know when additional documents are needed to approve your loan and come up with suitable solutions in case you have trouble getting financing. Before putting down an offer, talk to your agent about including an appraisal contingency if you’re concerned about the appraisal value. Especially when the demand in homes is very high and you had to bid over the asking price.
Closing Attorney
When closing a real estate contract, it is required that both parties involved (seller & buyer) use a real estate attorney. He or She will oversee that the transaction is done correctly and handled within the proper time frame.
The attorney will draft all of the closing documents necessary for the buyer to purchase the property. The responsibilities of the supervising attorney closing include:
- Performing a title search
- Prepare a deed for the sellers
- Title insurance acquisitions
- Handles the closing contract
Closing and Moving In
Final Walkthrough and closing
Before closing on your new home, you should take time and make sure the seller party has everything in order. Walk through the home and verify there are no belongings left behind, check repair areas if you requested them and make sure no other issues have arisen with the property. You may also want to double-check your home’s systems one final time to make sure everything is in good working order.
If everything looks good, it’s time for you to confidently move toward closing.
Closing
Three business days before closing, your lender will contact you and give you your Closing Disclosure, which tells you what you need to pay on closing day and summarizes your loan details.
Once you’ve reviewed your Closing Disclosure, you will have to attend to a closing meeting. Your agent will let you know what documents are necessary to bring.
At the closing meeting you’ll sign a settlement statement, which lists all costs related to the home sale. This is when you pay your down payment and closing costs. You’ll also sign the mortgage note, which states that you promise to repay the loan. Finally, you’ll sign the mortgage or deed of trust to secure the mortgage note.
After closing finishes, you’re officially a homeowner.
Congratulations!
Moving In
Moving to a new home can be an exciting but stressful journey. By finding the right movers and having a good, though flexible, moving plan, most of the common moving headaches can be easily avoided.
Moving companies provide a wide range of services, from planning your move, storing, packing and unpacking, to decorating and organizing your belongings in your new home. You can choose which services you want and have them tailored to suit your budget.
Tip #1
Estimates should be done in person and include a clear explanation of rates and charges that will apply, the mover's liability for your belongings, pick-up and delivery schedules, and claims protection.
Tip #2
Items of special value such as heirlooms, paintings, or collectibles can be insured under separate riders. In the event of damage to an item, file a claim immediately. Be sure to save the packing materials to show to the adjuster, should there be any problems.
Packing up and moving on
Once the time has come to start packing and organizing, here are some tips to make the process smooth:
- Start by packing the things you use most infrequently.
- Pare down items that have accumulated over time by grouping them into 3 categories Keep, Donate, or Throw Away.
- Create an inventory sheet of valuables and a list of which boxes they were packed in.
- Label your boxes according to the rooms where they’ll be moved – bedroom #2, 1st floor bath, etc.
- Consider using different colored stickers/tape for each room.
- Provide your movers with copies of the floorplan of your new home, so they can move more efficiently without having to stop and ask you where things go.
- Try to keep boxes under 50 lbs. whenever possible, put heavier items in smaller boxes to reduce bulkiness, and place
- lighter items in larger boxes.
- Dispose of items that can’t be moved, like flammable liquids, cleaning fluids, etc. Prepare your mower by emptying the fuel and recycle your propane grill tanks.
- Snap a photo of the back of electronic devices so you know which wires to attach when setting them up in your new home.
- Pack an overnight bag with moving day essentials, including toiletries, clothes, medications, and charger cords.
Investing? Relocating? Don’t want to rent anymore? Looking for an Upgrade?…
Regardless of your reasons for buying, it is a major commitment and you need to be sure if homeownership is right for you. Here are some things to consider before purchasing a property:
- How long do I plan to stay there?
- How much house can I afford?
- Am I at the right spot financially?
- Am I going to take out a loan?
- How much do I have saved for a down payment?
- Can I afford my desired neighborhood?
- Are home values increasing or decreasing in the neighborhood?
- How long will my commute take?
- Is the school district a fit for my family?
- How far from amenities and activities do I want to be?
Once you get the right feeling about these questions you can start preparing to buy. A great beginning in the buying process starts with a clear idea of what you want your house to be and how does it align with your financial goals.
Organizing Your Finances
This is the first part of the process, making sure you’re at the right place and right time financially.
1.
Gather the Proper Documentation
Start by creating a file with financial statements, a list of bank accounts, investments, credit cards, loans, pay stubs, tax returns of last two years, leases and other financial information. It will be easier for you to have it all accessible for when you need it.
2.
Check Your Credit Score
Credit scores are used to evaluate the potential risk of lending to you. The higher the number is, which runs from 300 to 850, the better your score. According to the “consumer financial protection bureau” the best mortgage rates go to the ones with credit scores in the mid- to high-700s or above.
3.
Get Pre-approved
One of the The best ways to know you’re in the right place to purchase a home is contacting a professional. A lender can answer your questions regarding how much house you can afford, what type of loan will suit you best, what decisions can help strengthen your financial situation, and most important, demonstrate that you can secure a loan when you’re ready to make an offer on a house.
It’s always best to get estimates from multiple lenders so you can compare interest rates and fees before actually opening your mortgage. After getting pre-approved you will receive a letter that validates your financial stability. It’s important that you show this to your real estate broker.
Be mindful of your economic decisions
Before taking on a new financial responsibility make sure it impacts your life positively. Take your time to research, build up a budget, clear some debts, and take action on your financial stability.
Buying a home doesn’t have to be that hard, and it won’t be with the right person by your side.
Why should I use a real estate broker?
There are many advantages that involve having a real state broker when buying or selling a home:
- Filling out correctly and overseeing important paperwork
- knows when to argue for a lower price and how to negotiate contingencies and repairs
- Makes sure everything happens according to your schedule
- A good broker can help you make sound decisions and guide you through the home buying/selling process.
- Gives you access to homes as soon as they hit the market
- identifies home value trends, new developments, buyer demand and overall state of the market
- determines what a home is worth and recommends a competitive initial offer amount
Why should I use a real estate broker?
There are many advantages that involve having a real state broker when buying or selling a home:
- Filling out correctly and overseeing important paperwork
- knows when to argue for a lower price and how to negotiate contingencies and repairs
- Makes sure everything happens according to your schedule
- A good broker can help you make sound decisions and guide you through the home buying/selling process.
- Gives you access to homes as soon as they hit the market
- identifies home value trends, new developments, buyer demand and overall state of the market
- determines what a home is worth and recommends a competitive initial offer amount
Having a broker takes many responsabilities off your shoulders so you are able to focus on making the right decisions when putting in an offer or accepting one.
Here are some factors to consider when choosing a real state broker to represent you:
- Look for real state professional with experience completing transactions similar to yours and in the same area you’re looking to buy or sell.
- Interview at least three agents. Are they confident on what they say?
- Ask about their time availability and if they are willing to work with your schedule
- Ask about their knowledge of the market trends, their credentials and previous experiences.
- Does the agent actively engage with you? Does the agent return your calls promptly?
- A good agent always looks out for your best interests
- Does she/he listens attentively to your needs and concerns?
- Pick somebody with whom you feel comfortable.
Here are some factors to consider when choosing a real state broker to represent you:
- Look for real state professionals with experience completing transactions similar to yours and in the same area you’re looking to buy or sell.
- Interview at least three agents, are they confident on what they say?.
- Ask about their time availability and if they are willing to work with your schedule.
- Ask about their knowledge of the market trends, their credentials and previous experiences.
- Does the agent actively engages with you? Does the agent return your calls promptly?
- A good agent always looks out for your best interests
- Does she/he listens attentively to your needs and concerns?
- Pick somebody with whom you feel comfortable.
finding "the one"
Hunting for a house is very exciting! You can start by telling your real estate broker an idea of what you’re looking for and he/she will help you in the search of houses within your budget.
Take your time comparing properties, touring during showings, going to open houses, selecting favorites and getting the right feeling about a home before putting down an offer.
Here are some things you might want to consider when shopping for a house:
- Price
- Square footage
- Home condition and possible need for repairs
- Access to public transportation
- Number of bedrooms
- Outdoor areas and swimming pools
- Local amenities and activities
- Local school district ranking
- Property and neighborhood value trends
- Property/real estate taxes
Here are some things you might want to consider when shopping for a house:
- Price
- Square footage
- Home condition and possible need for repairs
- Access to public transportation
- Number of bedrooms
- Outdoor areas and swimming pools
- Local amenities and activities
- Local school district ranking
- Property and neighborhood value trends
- Property/real estate taxes
Here are some things to be aware of when touring a home:
- Structural defects and cracking
- Water pressure (turn on faucets and shower heads)
- Electrical issues (try the light switches)
- Functionality and heat retention of doors and windows
- Roof and exterior quality
- Noise from neighbors or traffic
If you find a potential property, your real estate broker will help you analyze the market and prepare to negotiate when you are ready to put down an offer.
Here are some things to be aware of when touring a home:
- Structural defects and cracking
- Water pressure (turn on faucets and shower heads)
- Electrical issues (try the light switches)
- Functionality and heat retention of doors and windows
- Roof and exterior quality
- Noise from neighbors or traffic
If you find a potential property, your real estate broker will help you analyze the market and prepare to negotiate when you are ready to put down an offer.
Placing an offer
Once you’ve found the right home, your agent is most likely to recommend an offer based on a comparative market analysis (CMA). Calculating the home value by comparing recent sales in the same area.
As well as the CMA, here are some other things to take into consideration when making an offer:
After considering all these factors, your agent will help you determine a fair offer price and help you decide if you should leave some room for negotiation. Depending on the state of your real estate market, especially if it is highly competitive, being the first to make a solid offer can sometimes make a big difference. Here are 3 things that can make you stand out to a seller:
- Raising your down payment.
- Being flexible about the closing date.
- Being willing to waive contingencies.
After considering all these factors, your agent will help you determine a fair offer price and help you decide if you should leave some room for negotiation. Depending on the state of your real estate market, especially if it is highly competitive, being the first to make a solid offer can sometimes make a big difference. Here are 3 things that can make you stand out to a seller:
- Raising your down payment.
- Being flexible about the closing date.
- Being willing to waive contingencies.
Finally, when you place an offer, the seller can do one of the next three things: accept your offer, deny your offer or negotiate it. If your offer is accepted or if you negotiated and the seller chose your offer…
Congratulations! You’re a few steps away from homeownership.
Good work, You’re one step closer to the finish line!
The closing process begins by signing an initial agreement along with offering Due Diligence and Earnest Money to secure the deal with the seller. Your agent will help you set up inspections, negotiate repairs, secure your finances and ensure sure everything is ready for closing.
These are the most common things that may happen within the closing process of a real estate contract:
The closing process begins by signing an initial agreement along with offering Due Diligence and Earnest Money to secure the deal with the seller. Your agent will help you set up inspections, negotiate repairs, secure your finances and ensure sure everything is ready for closing.
These are the most common things that may happen within the closing process of a real estate contract:
Making a Home Inspection
During a home inspection, a licensed professional will go through the home and make sure it complies with standard specifications for a home to be considered safe to live in. The inspector will target problems, test electrical systems, make sure the roofing is safe and much more.
After the inspection is done, the inspector will contact you back to disclose information about the condition of the home. You might find out the home has minor, medium and/or major issues that will need to be addressed. If the home happens to have a serious problem (like mold, lead paint or structural damage) it will be of your interest to negotiate the repairs with the seller before the closing date. If you can’t reach an agreement you may consider to drop your offer and find other home options.
Tip #1
We recommend making a list of repairs prioritizing the issues that concern you the most and discuss it with your agent. This will help you evaluate repair costs you may want to negotiate with the seller or decide if you should or shouldn’t move forward with the purchase.
Tip #2
A smart move is to include a home inspection contingency in your purchase offer. This will give you the convenience of backing out of a purchase without losing your Due Diligence Money deposit if the home inspection exposes significant problems with the home.
Appraisals
A home appraisal is a process through which a real estate appraiser determines the fair market value of a home based on a combination of square footage measurements, building costs, recent sales of comparable properties, operating income, etc.
Lenders can’t award more money than a home is worth, therefore they request appraisals to confirm that their investment in your property is precise. If the appraised value happens to be lower than your offer, it might be difficult to get financing.
It is crucial to be in constant communication with your agent and lender. They will let you know when additional documents are needed to approve your loan and come up with suitable solutions in case you have trouble getting financing. Before putting down an offer, talk to your agent about including an appraisal contingency if you’re concerned about the appraisal value. Especially when the demand in homes is very high and you had to bid over the asking price.
Closing Attorney
When closing a real estate contract, it is required that both parties involved (seller & buyer) use a real estate attorney. He or She will oversee that the transaction is done correctly and handled within the proper time frame.
The attorney will draft all of the closing documents necessary for the buyer to purchase the property. The responsibilities of the supervising attorney closing include:
- Performing a title search
- Prepare a deed for the sellers
- Title insurance acquisitions
- Handles the closing contract
Closing and Moving In
Final Walkthrough and closing
Before closing on your new home, you should take time and make sure the seller party has everything in order. Walk through the home and verify there are no belongings left behind, check repair areas if you requested them and make sure no other issues have arisen with the property. You may also want to double-check your home’s systems one final time to make sure everything is in good working order.
If everything looks good, it’s time for you to confidently move toward closing.
Closing
Three business days before closing, your lender will contact you and give you your Closing Disclosure, which tells you what you need to pay on closing day and summarizes your loan details.
Once you’ve reviewed your Closing Disclosure, you will have to attend to a closing meeting. Your agent will let you know what documents are necessary to bring.
At the closing meeting you’ll sign a settlement statement, which lists all costs related to the home sale. This is when you pay your down payment and closing costs. You’ll also sign the mortgage note, which states that you promise to repay the loan. Finally, you’ll sign the mortgage or deed of trust to secure the mortgage note.
After closing finishes, you’re officially a homeowner.
Congratulations!
Moving In
Moving to a new home can be an exciting but stressful journey. By finding the right movers and having a good, though flexible, moving plan, most of the common moving headaches can be easily avoided.
Moving companies provide a wide range of services, from planning your move, storing, packing and unpacking, to decorating and organizing your belongings in your new home. You can choose which services you want and have them tailored to suit your budget.
Tip #1
Estimates should be done in person and include a clear explanation of rates and charges that will apply, the mover's liability for your belongings, pick-up and delivery schedules, and claims protection.
Tip #2
Items of special value such as heirlooms, paintings, or collectibles can be insured under separate riders. In the event of damage to an item, file a claim immediately. Be sure to save the packing materials to show to the adjuster, should there be any problems.
Packing up and moving on
Once the time has come to start packing and organizing, here are some tips to make the process smooth:
- Start by packing the things you use most infrequently.
- Pare down items that have accumulated over time by grouping them into 3 categories Keep, Donate, or Throw Away.
- Create an inventory sheet of valuables and a list of which boxes they were packed in.
- Label your boxes according to the rooms where they’ll be moved – bedroom #2, 1st floor bath, etc.
- Consider using different colored stickers/tape for each room.
- Provide your movers with copies of the floorplan of your new home, so they can move more efficiently without having to stop and ask you where things go.
- Try to keep boxes under 50 lbs. whenever possible, put heavier items in smaller boxes to reduce bulkiness, and place
- lighter items in larger boxes.
- Dispose of items that can’t be moved, like flammable liquids, cleaning fluids, etc. Prepare your mower by emptying the fuel and recycle your propane grill tanks.
- Snap a photo of the back of electronic devices so you know which wires to attach when setting them up in your new home.
- Pack an overnight bag with moving day essentials, including toiletries, clothes, medications, and charger cords.