Below is a list of steps a typical home buyer would take when purchasing a home.
Of course, as your agent, I will hold your hand through the entire process and take care of most of these items, but hopefully this will help educate you in the home buying process.
Knowledge is power and just knowing the steps can make a world of difference on your stress level as we go through the process together.
Steps in a typical real estate transaction for a buyer:
- Get pre-approved for a loan – Get in touch with a lender; this could be a bank, mortgage broker, credit union or similar work out a budget for your home. You will need to divulge any income and liabilities so the lender can determine from your debt to income ratio how much you can reasonably afford to pay for a home. The lender will then give you a letter of pre-approval that we will present to sellers when submitting an offer. Be aware, if you are looking at foreclosed homes, a pre-approval letter is required to even write an offer! – Click Here for my personal recommendation.
- Start looking at homes – Now that we have a price range in mind, it doesn’t mean you have to max out that amount on a home. This is a maximum amount you should spend on a home and anything lower than that will only make your finances easier. You can start looking right here for Lake Havasu real estate and contact me for private showings; or let me do the searching for you by using the Dream Home Finder or Foreclosure Finder.
- Get in contact with me – As your “buyers agent”, I am not necessarily the same agent that is listing the house you like. That agent is called the listing agent. Their main focus and job is on selling the house for the most money and works for the seller, not always in your best interest. Having a buyer’s agent like me specifically working for you and finding you the right house, at the best price, is always a better choice. You know I am working solely for you and not any seller and I will keep your best interest at heart. Have some questions or want to set up some showings? Click Here to Contact Me Now.
- Submit an offer – Once you have found a home you like, we will write up all the necessary paperwork needed to submit a strong offer. We will just need to figure out how much you want to put down, how much earnest money up front you are willing to offer the seller and when you would like to close on the home. Your lender will help us out with those details. I know exactly how to write up a strong offer to give you the best chance of getting a accepted offer. I can provide you with sample contracts and help answer any questions you may have. Just give me a call at 928-846-6474 or click here to contact me now.
- Waiting for a response – This cab be the most anxious part of the whole process as we just don’t know how the seller is going to react to our offer. If they accept our offer, then it starts our pre-determined Inspection Period (usualy 7-10 days) and its time to get the inspection scheduled. If they do not accept our initial offer, they will typically counter-offer with something else. If we agree, and the contract is mutually accepted once we sign. Then the earnest money can be deposited in escrow and onto inspections. If no deal can be made, the transaction is terminated and money is returned to you. Part of my job is to make this whole process as smooth and pain-free as possible. Contact me today with any questions you have.
- Have a Home Inspection – You will want to hire a professional inspector for this. This is probably one of the biggest investments you are going to make in your lifetime and you want to be sure what you are getting. Especially if you are buying a foreclosure being sold in as-is condition. Once escrow has closed and the home is yours there is very little you can do after the fact. The inspector will tell you all about your home and any repairs needed immediately and any needed in the future. Once you have had the inspection you can either request repairs to be made, credit for repairs, money off the home cost, terminate the deal all together, or go forward with no repairs. If you would like some references, just contact me and I will get you the details and contact information.
- Get Insurance – After all contingencies are resolved, you will need to obtain home owners insurance. I always suggest using an insurance company you already have, as you might be eligible for discounts. Otherwise, get several quotes and make sure they know what and where you are moving to. This is also a time where the sellers are moving out, lenders are finalizing loan documents, escrow is compiling papers and monies, and agents are keeping the peace between all parties. It is (hopefully) a quiet time for you but also a good time to let everyone do their jobs and you concentrate on your new home.
- Final Signing and Closing Escrow – Once all the documents and paperwork are at escrow, you will go in separately from the sellers and sign all the paperwork necessary to complete the transaction. (If out of town, a mobile notary will be scheduled to come to you). After the signing there is approximately 24-72 hours before the “closing” happens. This is where all monies are distributed and the deed is recorded with the county. On a typical purchase contract you can negotiate to move in upon closing or three days later if the sellers needed time to move out. In Arizona, once the Deed is recorded, the keys are yours to your new home!!
I hope you found this quick overview of the home buying process valuable. If you have any questions about any of the steps outlined above, please feel free to give me a call at 928-846-6474 or click here to contact me now.
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