Home Buying Process

1. Define your goals, wants, needs and expectations.
A good place to begin is by exploring your wants vs. your needs. What factors are you willing to compromise on and what factors are deal breakers.

2. Get Pre-Approved by your Lender.
Knowing how much money you have to work with is key. There is nothing worse than falling in love with a home and then finding out that you can’t afford it. Pre-Approval will also make your offer more likely to be accepted as the financing is already guaranteed.

3. Select and View Properties
Find as many properties currently on the market within your budget that match your “must haves” and set up appointments to view them. Take notes of your impressions of the neighborhood, the street and the house itself. This will help you make the decision of which property you would like to purchase.

4. Write an offer to purchase.
Once you have found the home you wish to purchase, you will need to determine what offer you are willing to make for the home. It is important to remember that the more competition there is for the home, the higher the offer should be – sometimes even exceeding the asking price. Remember, be realistic. Make offers you want the other party to sign! You will want to include any repairs that you will be requesting the Seller to make, if any. When you write an offer you should be prepared to pay an earnest money deposit. This is to guarantee that your intention is to purchase the property.

5. Negotiate.
After you present your offer it will either be accepted, rejected, or the seller will make a counter-offer. This is when you will need to negotiate.

6. Draw up and sign the contract
At this point, you will need to seek legal representation to examine the contract drawn up by the Seller’s Attorney. They will work together to negotiate the legal terms of your purchase, including: any inspections that you will require, time frame for any repairs and a time frame for you to obtain your mortgage commitment from your Lender.

7. Board Application and Approval
If you are purchasing a CoOp, you will need to complete an application packet for the CoOp Board. You will usually need to submit proof of income and employment to make prove that you will meet the Board’s DTI and income requirements. This may include: tax returns, pay stubs, letters from your employers, bank statements, investment portfolios, or any number of other items requested by the Board. Once the application has been submitted and reviewed, the Board will schedule an in person interview. Then they will determine whether or not to grant you approval to purchase.

8. Obtain your mortgage
You Lender will provide you with a mortgage application that will also require you provide proof of multiple forms of income and a credit report. The Lender will want to know the fair market value of the property you are purchasing and will schedule an Appraiser to view the property. If the Appraiser’s report shows that the property is valued lower than the amount of your loan, you will need to re-negotiate the sales price with the Seller, as Lenders will seldom offer mortgages over the appraisal price. The Lender will then submit your application to an Underwriter who will determine the Lender’s risk in offering you a mortgage. When the Underwriter has given your Lender the Clear-To-Close, the actual Closing will be scheduled.

9. Prepare for Closing.
Stay in contact with your attorney to make sure that all of the necessary documents and forms have been prepared. They should be available for your review before the closing takes place. You will also need to schedule a final walk-through with the Sellers so that you can assess the state of the property and any repairs before you take ownership.

10. Close!
At the closing, ownership of the property will be legally transferred to the you. Your deed and mortgage will be filed on record with the state.

Contact me today if you are ready to start the process of buying a home!

Agent

Patti Gottlieb

Patti Gottlieb

Phone(917) 538-2172