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1) Get organized
2) Shop for property
3) Make an offer
4) Get a loan
5) Close the deal
Get Organized
Make it easier on yourself and your agent. Go to a bank and get pre-approved. This is a tool that is good to have when making an offer. Some things the bank will ask you to provide are:
• Cash available for a down payment
• Cash available for closing costs
• Current income
• Job status
• Estimated assets
• Estimated debts
Shop For a Home
Use an agent when looking for a home. Remember that buyer's don't pay any commission to an agent, that is the responsibility of the seller. USE AN AGENT!
Think about a few questions when evaluating the property you like. Your questions might include the name of the school district, why is the seller selling, and what is the neighborhood like. You might also want to know the condition of the house, the amount of necessary house repairs or replacements, the builder, and date the house was built, etc.
Preparing Your Offer
You likely already have an agent and if not you will need to get one now to make an offer, try Rhett Crow with Lake Chelan Properties, we've heard good things about him. You are going to get an honest fair market value for the property from me, which will aid you in making an offer.
Prepare your offer and ensure that it’s within your price range. To add strength to your offer, include the letter of pre-approval from your lender, and minimize contingencies. Be ready to include a deposit with your offer(earnest money), which will be part of the down payment and credited at the closing of the transaction.
The seller may accept or counter your offer. There will be a specified time frame you have given the seller to respond. Worst thing that can happen is a counter. You can then accept the counteroffer or "counter the counter." If and when the seller accepts, this is known as "mutual."
Time to Get a Loan
If you’re not pre-approved, it’s time to get approved. You will have the choice to get a loan from the company who gave you the pre-approval or to shop elsewhere. This can be done through a lender or mortgage broker. A mortgage broker acts as a middleman between the borrower (buyer) and the lender. Examine the different types of available loans, find the best rate, compare, and be well educated on your decision.
Close the Deal
Speak with an accountant if your closing date is near the end of the year. Your accountant will identify future savings with owning a home and will recommend a future closing date or earlier date for tax purposes. Your lender will estimate all your closing cost to avoid any surprise.
It’s now time to close the deal. It is closing day and the seller officially signs the property over to you. Before signing any paperwork have your agent or escrow officer discuss each detail.
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