First-Time Homebuyers
ATTENTION FIRST-TIME HOMEBUYERS:
Claim Your $8,000 Tax Credit Today!! It's easy to claim this CASH,
call 678-522-4035 or email me for the details.
Buying your first home is such an exciting and liberating time in your life! No more rent payments wasting away into nowhere! But, without the right guidance, it can also be an overwhelming and frustrating experience. It´s important that you not only choose an understanding and knowledgeable Realtor to represent you, but that you understand what the home buying process can involve.
Remember, as a buyer, our real estate experience and services are at no cost to you! At the time of listing their home with a Realtor, sellers agree to pay a commission to both the listing agent AND the buyer´s agent. It is extremely uncommon for a seller not to agree to pay a buyer´s agent a commission. See Buyer Agency to understand the rare circumstances a buyer would have to pay commission.
Megan Romine - Marietta, GA
The first and most important step in buying your first home is to talk with a mortgage lender and get pre-approved. It´s very important for you to understand what price house equals what mortgage payment, and what you feel comfortable spending. Sometimes you can get pre-approved for a high price bracket, but the mortgage payment might be higher than you want. You don´t want to be house poor! This step is also important because there are so many different types of loans out there--even with little or NO money down--and you need to find out what type of loan will work best for you in your circumstances. Your lender will help you understand what your closing costs will be and how much money you will need for closing. Lenders can also help you clean up your credit so you can get the best possible loan and interest rate available.
Once you are pre-approved, the fun stuff begins! Now your Realtor can search through the thousands of homes listed to find what best matches your "wants" and "needs". Homes can be easily emailed to you with pictures, addresses, directions, and all sorts of other information. At your convenience, your Realtor can set up an appointment with you to show you the houses you´d like to see. Once you have found "The ONE", the contract and negotiating begins.
When writing the contract, there are some things that will need to be discussed: First, and most importantly, the offer price. Your Realtor should have pulled comparable sales for that subdivision to make sure that "The ONE" has been competitively priced. Your Realtor will help you decide what kind of offer to make. Other things you will need to discuss and decide are loan type (remember: get pre-approved!), seller-paid closing costs, closing date, home inspection, and any "special stipulations" that you would like in the contract. For example, special stipulations can include things like asking for a home warranty, having the house or carpets cleaned, or the removal of a dead tree.
At the time of writing the contract, you will be required to put down "Earnest Money". This can be anywhere from $500-$5000, depending on your price range (think around 1% of you loan amount). The earnest money will be deposited once the contract is fully negotiated AND accepted into the broker´s escrow account. It is kept there until closing; then it will be credited back to you as part of your down payment. If the contract does NOT close, the earnest money will be distributed in MOST circumstances to the buyer. However, if the buyer is in default of the contract, then they could risk the chance of losing their earnest money. Talk to your Realtor so you understand in what instances you could lose your earnest money.
OK! So now you are all negotiated with your earnest money deposited, and you are picturing what furniture goes on what wall in which rooms;now what??!! The first week after your contract is accepted will be a little busy. You will need to contact your lender and now make loan application. Your lender will have a list of items you will need to get to him, such as tax returns and bank statements. The other thing that will happen in this week is the home inspection. It is strongly recommended that you get a home inspection!! They usually cost between $250-300, but it is worth it! The home inspector will find every little defect of the home and let you know about it. The next step of the negotiating is asking for the homeowner to fix necessary items on the home inspection report. Once the inspection repairs have been negotiated and agreed upon, you are practically a homeowner yourself!
Laura Thompson - Acworth, GA
From now until closing, you can breathe a little easier. Your lender will be contacting you with additional things they need to process your loan. Just when you think you´ve got it all to them, they´ll need something else! The loan process can be funny sometimes with the things they need. Keep in mind, though, it´s all to help you get the best loan possible!
Before closing, you will need to talk with an insurance agent and get a 1-year homeowners (hazard) insurance policy. It is required for closing-they won´t close the loan without it!
Finally! The closing! You can expect to be at closing for approximately 1-1 & ½ hours depending on how busy the attorney´s office is that day. Your Realtor will attend closing with you to help you understand your settlement statement and help answer any questions you may have. That´s it! You´re done! Homeownership at last!
We hope we have helped you understand the home buying process a little better. We would love the opportunity to be your Realtor and help you through this exciting time in your life. Please don´t hesitate to contact us at anytime!
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