BostonLuxeLiving

The Home Buying Process Starts With A Plan

1. Find The Right Representative

Even if you’re not quite ready to buy, your buyer’s agent can be an absolute wealth of information, and can often offer ‘scoops’ on local developments you might not have know about otherwise. Speak to your agent first and he or she can be helping to guide you right from the start.

2. Find Out What Your Price Range Is

Online mortgage calculators are a good place to start, but as you get closer to being ready to buy, there is no substitute for a written mortgage pre-approval. Just speaking to your lender is an extremely worthwhile venture – this is the only way to really get an in-depth picture of your overall financial picture and to discover exactly what you can reasonably afford to spend on a home (and possibly on renovating).

3. Find Out About Your Local Market

The internet can be incredibly valuable in doing preparatory research. Start with your agent – he or she can direct you to valuable resources and immediately start e-mailing you real estate listings that may interest you (or at least give you a better idea of what your needs and wants are).

4. Find Out What Your True Needs + Wants Are

Compose a needs/wants list that takes into consideration your local market conditions, your price range, and the advice of your real estate agent.

5. Find Your Dream Home

Once you’re ready to act, you may be surprised by how quickly you can make a decision. Armed with your pre-approval, a little market knowledge, and your needs/wants list, call your real estate agent, hit the pavement, and when you see ‘the house’, put in an offer.

The Home Buying Process Ends With Team Effort

6. Agent Writes Offer On The Home You Choose

Once you find the home that is right for you, we will make an offer on it. Together with the offer letter we will also submit an earnest money deposit (typically $1,000). At this point the seller will either accept, or counter the offer, negotiating back and forth with you, until hopefully the price and terms are mutually agreeable.

7. Contact Home Inspector + Mortgage broker + Attorney

Once the offer has been accepted on both sides you will schedule a home inspection, contact your mortgage lender to start the next step of the mortgage process and contact your attorney.

8. Sign Purchase + Sale Agreement (P+S)

Your home inspection has been completed to your satisfaction so your deal moves ahead to the next hurdle, the Purchase & Sale Agreement (P&S). This is the contract that will state all the terms of the purchase and it is something that your attorney and the seller's attorney will write together.

When both attorneys approve the P&S, it is time for you, the buyer, to sign the contract and give a check for the balance of the 5% of purchase price minus the earnest money already submitted.

9. Wait For Lender's Appraisal + Mortgage Approval

Next the deal is in the hands of the mortgage lender to get all the financing in order and have an appraisal done on the property. Once the mortgage has been approved, a closing date is set.

10. Contact The Utility Companies

This is the time you want to contact the utility companies and start the process to set appointments for after the established closing date.

11. Attend Final Walk-Through Inspection

Now it is time for the final property walk-through inspection before the closing to make sure all is okay.

12. Close The Sale

Finally, you attend the closing, sign the closing documents and get your door keys. Now you can move into your new home.

Your Team

Your Agent

A successful purchase starts with the right representative. In fact, once you’ve selected the best agent to represent you, it is likely that he or she can recommend other professionals to join your team, taking more of the responsibility off of your shoulders.

Your Lender (Appraiser)

A bank is not just a bank. Having the right backer can be extremely important – it is your money we’re talking about after all! Make sure that your lender and financial representative is someone with whom you feel comfortable, and be wary of any lender who promises you more than you think you can reasonably afford. Your lenders may or may not require an independent appraisal, and typically will make arrangements for the appraisal themselves.

Your Lawyer

Your home purchase is far too important a transaction to skimp on legal representation at the risk of leaving yourself open to costly future issues. Find a lawyer who is willing to take the time to answer your questions and who specializes in real estate law.

Your Home Inspector

No home inspection is 100% guaranteed, but a few hundred dollars to catch a major problem now is certainly better than many thousands to correct that ‘surprise’ down the road. Ask your agent for a recommendation.

Your Contractor

Planning some renovations? You’re not the only one! The home renovation industry is booming, and in some markets, booking a contractor must be done months in advance (that’s a long time to go without a kitchen). Don’t let finding the right contractor slip through the cracks – planning ahead will almost certainly make your renovation smoother, and you contractor will appreciate the advance notice.

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