10 Steps To Buying A House

Carey Farmer

Your Treasure Valley Agent

www.yourtreasurevalleyagent.com

STEP ONEFigure Out How Much You Can Afford

What you can afford depends on:

• Your income• Credit rating• Monthly expenses• Your down payment • The interest rate

STEP TWOSelect A Lender & Get Pre-Approved

What To Look For In A Lender:

• Do they offer a range of loan products?

• Are they offering the best rate and terms on a home loan?

• Does the lender have a genuine interest in serving you?

STEP TWOSelect A Lender & Get Pre-Approved

Pre-Qualified Versus Pre-ApprovedPre-qualified: You have told a lender your income level, your debt and credit information and the lender has estimated what you can afford.

Pre-approved: The lender has assessed your credit report, checked your debt-to-income ratio, and run a an in-depth analysis of your financial situation.

When you are pre-approved you will be provided with an official

pre-approval letter for a designated loan amount.

STEP THREEIdentify What You Want In A House

• Before you begin your search for a home, think about what you "need" versus what you "want" in a home.

• Consider:– Size – Amenities– Home Maintenance– Location– Neighborhood

STEP THREEIdentify What You Want In A House

Size criteria to consider:

• Number of bedrooms and bathrooms

• Size of kitchen and dining area

• Family living space• 1 or 2 or 3 car garage?• Front yard and backyard

usage needs

STEP THREEIdentify What You Want In A House

Home amenities to consider:

• Hardwood or Tile Flooring• Fireplace• Skylights• Solid surfacing in the kitchen

like granite or slate countertops

• Built in or free standing appliances

• Walk in closets• Freestanding garage

STEP THREEIdentify What You Want In A House

Home Maintenance criteria to consider:

• Age and condition of appliances

• Age and condition of heating, air and water systems

• The need for yard maintenance and lawn care

STEP THREEIdentify What You Want In A House

Location criteria to consider:

• Closeness to work and/or schools

• Closeness to shopping and community activities

Neighborhood criteria to consider:

• Quality of schools• Crime rate• Noise & Traffic• Air & Water quality• Zoning

STEP THREEIdentify What You Want In A House

Home Owners Association

• HOA Dues• Restrictive Covenants

HOA Access to:

• Parks• Community Gardens• Gyms• Swimming Pools• Tennis Courts• Community Centers

STEP FOURHire A Realtor

Why Hire A Realtor?

They are:• Knowledgeable and

experienced in the buying process

• Knowledgeable of the local market and prices

• Skilled and experienced at negotiation

STEP FOURHire A Realtor

What To Look For:

• Licensed & Certified• Experienced• Personable &

Communicates Well• Tech Savvy• Knowledgeable of Local

Markets & Prices • Full Time

STEP FIVETour Prospective Homes

Bring a camera, tape measure and notebook to take notes.

What To Look For: • Assess the quality of interior

lighting in the home• Assess the impact of the sun

and trees on light in the house and yards

• Inspect the quality of any fences

• Assess the water pressure• Test any gas fixtures including

stoves and gas fireplaces.

STEP SIXMake An Offer

• Your agent will provide you with a generic purchase contract, which together you will modify to fit your specific needs.

• The contract identifies the key points of the contract: buyer, seller, property location, brokers, etc., as well as the purchase price offered, the down payment, the loan amount, and the deposit.

• A response time is identified for a response to the offer, for obtaining financing, for closing on the home, and for moving in.

• Contingencies or terms are also outlined, such as the offer being conditional based on the sale of your current home or the findings of a home inspection.

STEP SEVENHome Inspection & Disclosure

Once an offer is accepted, your Real Estate agent will collect and hold a deposit check or earnest money from you. The home is then inspected and the seller must disclose any known defects with the property.

• The inspection is completed by an independent inspector and the process is designed to detect any major flaws or deficiencies in the home. Note: It is not designed to facilitate the detection of all flaws, problems or occurrences that might exist in any given home.

• At this time, the seller is obligated under law to disclose all known defects of the property in written form as part of the purchase contract.

STEP EIGHTEscrow

Once the home inspection is done and disclosures have been made, a final sales agreement is reached and the process moves into escrow.

• As you enter into escrow your Real Estate agent will turnover your deposit check or earnest money to the Title Company who will process the sale.

• During escrow, the title company:

1. Conducts a title search for any outstanding liens against the property to ensure the sale is legal and binding.

2. Completes and files all the necessary documents to finalize the sale.

Additionally, any and all conditions to the sale must be satisfied during this phase in the process.

STEP NINEClosing

Closing is a two step process that involves:

• Walk Through Inspection:– Verify that all included appliances are in working order– Turn on every faucet and flush toilets – Plug something into each outlet– Check the smoke detectors– Test the heat and the air-conditioning– Look for water and mold on ceilings– Examine for signs of vermin

• Signing of Purchase Documents & Payment

STEP TENProtect Your Investment

Protect your investment through:

• Home Insurance– Home Owners Insurance– Fire/Flood– Liability

• Home Maintenance – Heat, AC & Water Systems– Roof– Paint/Siding– Walkways & Yards

Looking For A Realtor?

• I would love to be your realtor!

• Contact me at:

carey@careyfarmer.com