Find a Great Real Estate Agent: A great Real Estate Agent is priceless because they'll help you find you the best deal on the home meeting your criteria faster. They'll negotiate on your behalf, handle all the paperwork properly for you, and coordinate a smooth closing. Make sure you pick a good REALTOR that you feel communicates well, has a good personality, and that you can trust is looking out for your best interest rather than just trying to make a sale. Brandi Windham is among the best Texas Realtors. You can reach her at (817) 319-8290 or brandi@brandiwindham.com. Check out her website at www.mywindhamrealestate.com
Find the Home You Want: This sounds easy but it's very hard to find the perfect home for the perfect price. A great real estate agent that knows the markets and how to negotiate will be a huge help. They can also provide you with customized searches for homes meeting your exact criteria. They can set up auto email alerts to alert you as soon as a home is listed or reduced in price that meets your criteria. These are just a few of the advanced tools and priceless insights a great REALTOR. Think about important things like location (general and specific), school district (Exemplary is the best), property taxes (they don't go away even if you pay the home off), etc...
Check the Value: Once you've found the home you want, make sure it's a fair deal. You can go online or drive the community and see what other similar homes are available for sale for. Your REALTOR can see what similar homes in nearby area actually sold for recently to make sure you're getting a good deal. Your agent can give your their broker price opinion. You'll also be protected by your mortgage company’s appraisal. The mortgage company will not let you borrow more than what the home's appraisal value comes back at. There are also free sites that are less accurate but very fast and helpful such as Zillow.com
Write Offer: Contracts should be written up on your states promulgated Real Estate forms. If you have an agent, they will handle writing up the offer you want to make, explaining the contract, and showing you where all you need to sign. If it's a new construction home you are buying, then often times the builder write up their own contract and require that it be used. Make sure you understand it before agreeing to it as with any contract. Then your Realtor will deliver the offer to the seller or seller's listing agent. Your offer will be accepted or countered. If it's countered, then you'll have to negotiate. Make sure you get an owner's title policy in the deal to ensure you will own the home free and clear other liens when you close.
Negotiate: For most this is the most stress part of the transactions. Others, including the best Real Estate Agents actually enjoy and thrive in negotiations. Like it or not, this is a critical stage that can be the difference in you getting the home and the deal you want or not. Keep in mind that sometimes this means offering above list price to win out over other bidders on homes that are under priced. Don't get emotional and always keep your real overall goal in mind (getting your home).
When do You Really Have a Deal: Once the seller has signed the contract and it's been delivered to you then you have a deal. Do not settle for verbal agreements. Even during negotiations send back signed paperwork. That way if the seller agrees to it they can't back out.
Deliver the Earnest Money Check: Now that you have a deal you need to deliver the earnest money check to the title company. The earnest money is deposited with the title company that you will close at. If you close, then it will be credited to you. If you withdraw from the contract after you option period, you will lose the money. You also need to deliver the executed contract to your lender so they can open title, order your appraisal, send your loan file to underwriting, etc...
Order the Inspection: If you've negotiated to have an option period, then this is the time to have the home inspected by a 3rd party inspector. The inspector will check the home's mechanical and structural systems such as electrical, plumbing, HVAC, hot water heater, roof, foundation, etc.... The inspection will be done at your expense and usually range from $250-$450. It's a good idea to go to the inspection with you agent and go over it together to make sure you're all on the same page. Even if you don't have an option period, ALWAYS have the home inspected before you close. It's a good idea to meet with your inspector and agent to go over the inspection after they're done.
Get Bids from Contractors: If the home does need significant repairs don't panic. This can actually be an opportunity for you to get an even better deal. If the work is minor, then have 1-2 contractors give you bids on the work. If it's major then get 3-4 bids. Now you'll know exactly how much the repairs will cost.
Renegotiate or Choose Not to Rock the Boat: Now you have a few options. You can have your agent send over an amendment during the option period either for the seller to make the repairs or to reduce the price, or pay more closing costs, or whatever you feel is fair. You get the point. The second option is that you bail out of the deal altogether and get your earnest money back. Just keep in mind you'll be out the cost of your option check, inspect, time, etc... if you bail. Also keep in mind that the real estate world is a small world. If you bail out on a good deal, then you will get a reputation for being a flake buyer that agents will not won't to deal with. Your third option is to not risk losing the great deal you got and just go close. Keep in mind if you send over an amendment to the contract during the option period, then you're out of contract unless the seller signs off on it. If the seller doesn't agree to your requests, then they can continue marketing the home to other buyers. This is a crucial period during the transaction that sets the precedence for the rest of your transaction.
Order the Survey: Most individual sellers already have a survey that you can reuse. However, if they've lost it or made major structural/exterior changes to the property then you'll need to have the title company order a survey. Most buyers don't know it, but you can shop for the best surveyor. You don't have to just let the title company pick their guy. You need to look at the survey to see if there are easements on the property in areas where you might want to build a permanent structure such as a pool or a work shop. You'll also need to make sure that the home isn't in a flood plain. If it is, then the lender will require that you get flood insurance which is in addition to your regularly home owner's insurance policy and is pricey.
Stay in Touch with Your Lender: Stay in communication with your loan officer and their loan processor multiple times per week. They will almost always need more paperwork from you or for you sign and send back paperwork for them. Also, you need to let them know of any changes in the estimated closing date, changes in the price, etc... Lastly, check with them that nothing is changing on their end. Have them send you the written copy of your interest rate lock to ensure they've locked in what they've promised you and that nothing will change at the 11th hour.
Schedule a Final Inspection: Always do a final inspection of the home to confirm it's in proper condition prior to closing. If the seller was supposed to make repairs, then have your inspector confirm that they were done properly. DO NOT close on any new or pre-owned home until the agreed upon repairs are completed. After you close you have a lot less leverage to get the seller to fulfill their promise. You may also want to get with the seller to learn how things like the thermostat, sprinklers, alarm, etc... work.
Shop for Home Owner's Insurance: Your lender is going to require that you provide them with contact info for that the home owner's insurance agent/company/policy you're going to use. Shop who you are using for your auto insurance because they'll give you a discount for doing both with them. Also shop the other large companies such as Liberty Mutual, Farmers, State Farm, etc...
Schedule an Estimated Closing Date: For this you'll need your agent to coordinate with the listing agent, the title company and your lender to come up with a date that works for everyone. DO NOT try to close on the last Friday of the month. That's the day everybody tries to close on. If any minor problem comes up then everyone will be too slammed with other closings to fix it in time. Also, allow several days or even a couple days before you have to be out of where you're currently living. Closing delays are almost inevitable in today's world of mortgages and you don't want to be homeless or moving twice in and out of a cramped extended stay motel.
Schedule the Movers: If possible, avoid scheduling the movers for the same day as your closing. Try to schedule the movers several days or even a couple weeks after your estimated closing date just in case something comes up. Movers usually charge deposits that are non-refundable after a certain date and sometimes you can't even reschedule them for weeks. This will prevent the crisis of having the moving truck show up before the seller can give you the keys to your new home.
Look at the HUD-1: The HUD-1 settlement statement shows you what your payment will be and what you need to bring to closing. Your payment should be within a few dollars what your lender promised you. Your cash to bring to closing should be within a few hundred dollars of what was estimated on the GFE. If it's not, then you need to get with your lender and the title company and see why. If the lender just over promised and is under delivering then hold their fee to the fire and make them eat the difference. In 2010 it's the law, not just their promise, that they deliver very close to what the estimates. They give you. If you good with a good loan officer like Nick Windham with VIP Mortgage, you want have this problem.
Go Close: Closing is where you go to the title company with your Realtor and or Loan Officer and sign all the closing paperwork to put the home into your name. You'll bring your cashier's check for the amount requested. If you can't be present, then you can arrange a courtesy closing or have someone with a power of attorney sign closing papers for you.
Transfer Utilities: Oh yeah, you're probably going to want to have electric, water, gas, TV, phone, etc... at your new place. Most of these service providers have lead times of a few days to a few weeks so you should contact them well before your estimated closing date. Coordinate with them to come out soon after you close. You'll usually have a few days after you close before the utilities are turned off but not all sellers are so generous for financially able.
Start Living Happily Ever After: Make friends with your neighbors, register your kiddos for school, host a house warming party, etc....
This is a brief summary of how to buy a home. For any detailed questions you may have, feel free to contact Nick or Brandi Windham with VIP Mortgage and Windham Real Estate.
Nick (682) 365-6365
nickw@vipmtg.com
www.twitter.com/nickwindham
www.facebook.com/nick.windham1
Brandi (817) 319-8290
brandi@brandiwindham.com
www.mywindhamrealestate.com
www.twitter.com/wrealestate
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