With June marking the start of summer and the excitement that comes with warmer weather, planned vacations, and all the outdoor activities, another topic of discussion also arises this time of year: homeownership. As "Homeownership Month" comes to an end, I want to emphasize that owning your own home is a year-round interest for me as a REALTOR.
Why is Using a REALTOR® Important?
Local REALTORS® work hard to stay informed about current market trends in their area, ensuring that we provide our clients with the necessary information to make informed real estate decisions. I believe that excellent communication skills, effective negotiation, and being the biggest advocate for my clients are the keys to building lifelong relationships that extend beyond the closing of any transaction.
What is the Process? Sometimes, simply figuring out the first step in the home-buying process can seem like a daunting task. Don't let the fear of the unknown keep you from pursuing your dream of homeownership, though!
So, where exactly do you begin?
Get Pre-Approved: A pre-approval letter shows a seller that you are serious about purchasing a home. Connecting with a loan officer to determine your loan type and how much you can afford is the first step in buying your home. Getting pre-approved is an easy process with your trusted local loan officer. They will conduct a thorough investigation into your credit history, credit score, income, debt-to-income ratio, etc.
Find Your Home: Once you're pre-approved, we can begin your home search! With clear guidelines on your pre-approved purchase amount and the loan type you qualify for, we can review homes that meet those specifications. This is where your REALTOR® comes in! With our access to the MLS and knowledge of the region, we will begin to send you homes that we can review together. You are also able to conduct a search of your own and send homes that you think you may be interested in. We will research properties that you find and ensure they fit the criteria set by your loan officer. Once we have our list of homes compiled to look at, we will schedule private showings for each property. This is the fun part! We will go through each home, and then you will have a choice to make.
Do's and Dont's During the Loan Process
Do: Stay current on all payments
Do: Maintain your credit score
Don't: Make major purchases until your loan has been funded. Do not purchase a new car, furniture for your new home, kitchen appliances, etc.
Don't: Make a career move
Don't: Open or close credit accounts without speaking to your loan officer
For other questions pertaining to lending specifications, contact your loan officer today.
Getting The Keys
You have been pre-approved, and we have found "The One"! The seller has accepted your offer, and you are officially under contract for your new home. Congratulations! Now what?
The following steps in the process will be ordering your home inspection and completing the appraisal. Don't get nervous; your REALTOR® will handle all of that scheduling and communication for you! Once the inspection report is in hand, we will discuss the items that you would like the seller to repair. That notice is submitted, and we wait for a response from the seller, negotiating to achieve an agreement. During this time, we are in constant communication with your lender, who keeps track of your lending process and appraisal completion.
Then, it's time to schedule our closing date and receive the keys to your new home! Your REALTOR® will coordinate with you, the lender, and the title company to schedule your closing. Some things you will need to bring with you are your driver's license and documents required by your lender. Don't forget to call and switch utilities over into your name!
We have searched for the perfect home and received an accepted contract from the seller. We successfully completed the inspection and appraisal process. Lending requirements have been met, and title work has been reviewed. You have signed at the closing table...you are officially a homeowner!
Do not let the fear of the home ownership process keep you from trying. Working with a REALTOR® who has your best interests at heart and who will focus on your needs and desires to the best of their fiduciary responsibility is the "key" (no pun intended) to helping you achieve this goal. Working with a lender that stays involved during the process is also a must during your transaction. It is an attainable goal; you can do this!
It's the perfect time to reflect and determine if you're ready to begin this process yourself. As always, never be afraid to reach out to your local lender or trusted REALTOR® to get started!