→ Deciding to Buy and Things to Consider

• Want a bigger or smaller home? Need to be closer to work or school?
• Looking to build equity, or maybe your just tired of paying rent!

→ How much home can you afford?

• Experts usually advise spending approx. 35% of your income on housing.

→ Getting Ready

• Choose a good local REALTOR® to help in your search and negotiations.
• Talk to a good loan officer such as Debbie Rhodes at Loan Source to help you get all your needed documents, check your credit rating and determine how much home you can afford.
• Avoid making any large purchases or changing jobs/careers as this could affect your ability to buy.
• Make a list of musts and like to have’s in your new home. This will help your REALTOR®
• In efforts to find you just the right home and let you compare homes as you search.

→ Get Preapproved

• Being preapproved shows sellers that yours is a legitimate offer and that you are a serious buyer who is able to buy NOW!

→ Go Shopping

• Try to look at several homes so that you get an idea of what’s available, plus this will also help your REALTOR® see what is really important to you.
• Remember most homes will have some compromises, so this is a good time to refer to your must have lists.

→ Make a Good Offer

• What makes a good offer? Talk with your REALTOR® and determine a fair price to offer.
• Keep in mind needed repairs, updates or improvements. What are similar houses in this area selling for? This is were your REALTOR® really pays off. Not only do you not wan’t to pay too much, but you don’t wan’t to miss out on the perfect house by making an unrealistic offer either. Besides by making a fair offer, the seller is more inclined to consider other concessions that you may need help on, such as down payment or other allowances.
• You will normally write a check for escrow and any option fees. Escrow is simply a cash amount to show good faith in your offer. This amount can vary, usually at least $500 which is credited back to you at closing.

→ Inspections, Appraisals and Negotiating Repairs

• When making an offer, ALWAYS allow yourself time to have the property inspected so that you can determine any problems, or issues that would need to be addressed or negotiated.
• Full house inspections are always a good idea, and some inspections such as termite or septic inspections are lender required.
• An appraisal will assure you that the home you are buying is in line with your offer.
• Negotiating repairs. Don’t be alarmed by the fact that after the inspections most homes will be in need of,  or have repairs suggested. This can be due to actual problems of varying degrees or in some cases what is known as (as built) conditions. These are items that may not meet current building codes, but did meet codes at the time they were built. Sometimes these are items that must be fixed, but in some cases the items may not be a problem that would ever cause you problems. These are items that you need to discuss with both the inspector and your REALTOR® and decide if these are items you can live with, fix yourself, or ask the seller to repair.

→ Final Details

• Just a few more steps and you're done!
• You will need to transfer utilities, and perform a final walk thru to make sure any repairs have been attended to. Your REALTOR® will go over the HUD statement which details all costs incurred in purchasing your home.  After that it’s off to Closing.

→ Closing

• Closing is simply a meeting to review all the documents, and sign, sign, and sign some more. 
• Your REALTOR® and escrow officer will inform you of time, date and what to bring.
• You will leave a new home owner with keys, garage door openers and congratulations!