Preparing to Buy

• Determine that you are ready to purchase a home and it’s the right decision
• Understand the requirements for buying
• Order a credit report from Five Stars Mortgage to review credit history
• Resolve credit issues if necessary
• Assemble the money you will need into one place
• Picking the best Loan Program that fits your needs? FHA, VA, USDA, Conventional, Jumbo?
• Get pre-approved for a mortgage
• Decide to work with a real estate agent or by yourself or both

Finding a Home

• Research neighborhoods
• Drive around the interesting areas
• Test commute by driving it
• Talk with local merchants and neighbors about the area
• Assess the schools in the area
• Decide on neighborhoods to concentrate on

Understand the Real Estate Market

• Read the Real Estate section of the paper for info
• Visit open houses and talk with sellers and agents about the market
• Psychologically prepare to move quickly if you are in a seller’s market and get pre-approved for your mortgage

Start to Shop

• Make a list of amenities desired in a new home
• Rank the amenities by most desired
• See properties, both FSBO and those listed with agents
• Assess each property against your list
• Decide on a house that’s right and prepare to make an offer

Writing the Offer

• Obtain contract forms from familymortgagega.com, your agent or another source
• Know the typical elements of an offer and contract
• Hire a real estate attorney to handle the contract if desired
• Decide on an offer price
• Compare the house to other houses on the market
• Decide on the inspections you want to have and how you want to handle it if they are not satisfactory
• Give the seller or agent a check for the earnest money deposit and make it clear in the offer when and where the check is to be deposited
• Decide whether you want the seller to contribute to your closing costs
• Decide on timeframes for inspections, financing and settlement

Negotiating the Offer

• Offer is presented for consideration
• Verify to the seller that you are pre-approved to purchase
• Receive the seller’s response and respond
• Accepted? Move on to handling the details
• Declined? Walk away or re-offer
• Counter-offer? Assess
• Price is acceptable or counter-offer price is decided upon –
• Make sure you still qualify at the new price – do you have enough cash and income?
• Timeframes for inspections, financing and settlement acceptable or alternatives decided for a counter offer
• Inspection, closing cost contribution and other contingencies are acceptable or alternatives decided on for counter-offer
• Earnest money deposit is acceptable or an alternative decided on for the counteroffer
• Accept the counteroffer, reject the counter offer or prepare a counter-offer in response to the contract
• Put time-frame in the counteroffer for the seller’s response

Handling the Details

• Home inspection completed if the contract requires
• The home inspection followed up on
• Home inspection issues resolved if necessary
• Other inspections like Radon, WDO, etc completed if the location or contract requires
• Other inspections followed up on
• Other inspection issues resolved if necessary
• Other inspections completed if required by contract
• Roof Inspection
• Electrical inspection
• Other
• Inspections followed up on
• Inspection issues resolved if necessary
• Property disclosures delivered, or condo documents if appropriate
• Property disclosures approved
• Property disclosure issues resolved if necessary
• Apply for mortgage
• Provide pre-approval letter to the seller if not already provided
• Appraisal completed
• Appraisal followed up on
• Appraisal issues resolved if necessary
• Mortgage is approved
• Open escrow with your title company or another source
• Deposit earnest money with the escrow company
• Provide necessary documents to the escrow company
• The survey is completed if necessary
• The title search is completed
• Issues with title search resolved if necessary
• Title commitment completed (title work is done)
• Termite inspection ordered if necessary
• Termite inspection completed
• Termite inspection followed up on
• Termite inspection issues resolved if necessary
• Obtain Homeowners Insurance
• Pay for one year in advance
• Provide paid receipt and insurance binder to the lender
• Repairs required by contract or inspections completed
• Settlement/Closing date and time scheduled
• with the escrow officer or closing attorney
• with the lender
• with the seller
• Final walk-through completed with seller
• Satisfied with the walk-through?
• Issues with walk-through resolved if necessary

Settlement/Closing

• Review documents 24 -48 hours in advance
• Resolve issues with documents if necessary
• Make sure all lender’s requirements have been met
• Determine the exact amount of money necessary for settlement
• Obtain a certified check for settlement
• Settle!

Buyers that want to learn more about loan programs and mortgage pre-approval can call us 7 days a week at the number above, or just fill out the Request Contact form on this page.