Buy A House

Purchasing a home is one of the biggest, financial decision you will ever make during your life, apart from owning a business. If this is the first property you are investing in, or you are deciding to make a move to a different home that better meets your current needs, Buying a home is a decision that must be made after carefully considering everything that will be involved, and everyone that will need to be involved, in order to make the total process work the best it possible can.

When you start thinking about your dream home, one of the first things that you should consider doing, before you even start looking at any homes, is finding a Realtor that you can work with, and that has your best interest in mind.

Some of the things to consider when choosing a Real Estate Agent, or Realtor, and why you should consider using a Realtor, vs not using one.

When it comes to Buying a home, it requires making many important financial decisions. You will need to understanding complex issues and there will be a lot of paperwork to be completed. The main thing that will make the biggest difference in the amount of stress that is involved through the entire process, will be working with a real estate professional. It helps to have an expert in your corner when undertaking such a large purchase. We can help guide you through the process, and in many cases get you access to home listings before they hit the general market.

One of the most understood aspects of employing a Realtor when buying a home, is that in nearly all cases, a Buyers agent service, are FREE, to the buyer. There is also another point to consider, that is even better news. When deciding who should be the best agent for you to work with, consider the fact that a great agent, vs just any agent, can mean the difference of thousands of dollars in your pocket. Money that you save not only in the price that you pay for the home, but the terms of the purchase, and the terms of the loan that you get, if you need to get financing for your purchase. A great agent will know the market, the history of the market, knows how to listen to what buyers want in a home, and what to avoid when purchasing a home. A great agent will help you select a desirable home that will ultimately become one of the best investments you will ever make, and one that you will enjoy for years to come.

Here are some factors you might want to consider, when choosing a real estate agent, or Realtor, in Arizona:

First, and I believe the most important thing to look for when deciding on a Realtor to work with, is their ability to listen to what you want. Then determine if they can take that understanding and explain how the current market conditions will relate to what you want. I believe that it is also important to find a Realtor that dedicates all their time to being a real estte professional. Real estate is a complex business, and you should be working with a full time Realtor, not someone that only works in the business a few hours a week.
Interview a few agents, if you must, to find the right one for you. Ask enough question to feel comfortable that they not only understand you, and what you want, but that they know what they are doing, and that they understand the current market, the previous market, and where they believe the market is headed.
Ask how much time the agent will have for you.
Ask about their credentials and education: A good agent will continually strive to improve and gain knowledge of the latest real estate trends.
Does the agent return your calls promptly? Time is money when attempting to buy a home.
Ask for a list of homes they’ve sold or a list of references.
Choose an agent who listens attentively to your needs and concerns.
BUT MOST IMPORTANT…Pick an agent with whom you feel comfortable.
For more information and for any additional questions, please feel free to contact us at any time.

If you are going to require financing for your real estate investment, there are some common items that you will be required to have, and now would be a good time to build a file for those items.

The typical financing file should contain:

Financial statements such as:
Bank account statements
Credit card statements
Auto loans paperwork
Recent pay stubs
Tax returns for at least the past two years
These are the basic items most every lender will require to complete both your LSR (Loan Status Report), and your final loan. The Realtor you choose to work with will know of at least 2 or 3 great lenders for you to secure financing with. If you do not have the cash to pay for your home purchase, getting all the facts from a lender before you start looking for a home, is the only way to start looking for a home. A lender will be able to tell you, how much money you will be required to have as a down payment, and or closing costs. How much home can you afford to buy. What the interest rate and length of loan, and monthly payment will be. You will want to know all these things before you start looking at homes.

You will need to know your credit score, and or have it checked by the lender.
Your credit score will play a major role in what type of home you can buy, and at what price. Anything above 620 will get you in consideration for a home loan, depending on other factors. There is talk about rising that number in the near future, due to all the foreclosures, and or short sales, that are currently affecting our market, and the banks economy. The higher your credit score, the better the rate and terms of the loan ypou will be able to get. A great credit score, (the closer you get to 800), the better the interest rate, and that may mean you qualify for a lower interest rate on your mortgage. You can check your credit rating with a credit reporting agency such as:

Equifax, Experian or Trans Union. The lender will need to get a credit report that is current, so if you do not have a current report, let the lender take care of that for you.
For more information and for any additional questions, please feel free to contact us at any time.

Choosing a Lender

A Great Realtor will be able to assist you in obtaining the best lender. That lender will review your complete financial file as well as listen to your desired goals.

Once your lender has accumulated all the information necessary, they will be able to compile a list of available options. Today there are a number of different loan packages available. Your lender will be able to fully explain the benefits and drawback of each. Together you will be able to select the one that is right for you.

Once you have completed this process your lender will create a Loan Status Report, or LSR. The LSR lets potential sellers know that you are a qualified buyer for their property and adds the necessary credibility to your offer.

This process also give you piece of mind. You are now able to look at, and consider properties knowing how they will fit into your budget. Each home you consider will have its unique advantages. With your finances in order you can better evaluate and consider which dream home is best for you.

For more information and for any additional questions, please feel free to contact us at any time.

OK, you are ready to start looking for a home, now that you have a Realtor, and a lender, and you know what you qualify for, and how much money you need to have to complete the purchase.
Once you have started shopping fora home, it is not a good time to make sudden career changes or large purchases. You want to approach home buying from a position of financial stability. Any major change in your financial position, such as the purchase of a new car, during this time may prohibit your ability to qualify for your new home. So hold off getting a new job, or buying a new car, or charging anything on the credit cards. Just pay all your bills on time, and don’t make any changes with anything, between the time you talk to the lender and get qualified, and the time you close on your home. Once you have signed all the loan documents, closed on the home, and it is recorded in your name, and you have moved in, then you can make changes in you gob, and or buy a car
Time to begin your home search

Once you’ve got those preparations out of the way, it’s time to find the home of your dreams.

Take a Drive
Get to know the neighborhoods you are interested in. Drive around and get a feel for what it would be like to live in areas you like. Start getting a sense of the homes available in those neighborhoods.

Narrow your search
Select a few homes that interest you and have your real estate agent make appointments to visit them. Ask your real estate agent about the potential long term re-sale value of the homes you are considering.

Time to Buy
Once you’ve picked out the house you want to buy, your real estate agent can help you make an offer that the seller will accept. A great agent will investigate all pertinent information about the property. This information will include, but is not limited to, items like: when the property was purchased by its current owner and for what price, tax information, resale potential, the potential costs of maintenance and repairs, school information, etc. An agent can also help you draft your offer in a way that offers you maximum legal protection.

A great agent will also keep you informed of your risk levels. Throughout the transaction your risk level are continually changing. Risk is not only financial. Risk can also come in the form of loosing the opportunity to purchase. Your agent will keep you abreast of other potential competing buyers and activity on your potential dream home.

For more information and for any additional questions, please feel free to contact us at any time.

Now that you have found your dream home, and have had your offer to purchase accepted, now starts the Escrow, Inspections and Appraisal period.

Escrow
Escrow is the process that starts when your purchase offer is accepted by the seller. It ends when you become the new registered owner of the property, when it is recorded in your name.

Title Company and Escrow
You will have selected a title company and stated that company in your purchase contract. A great Realtor will know the best company to use, and that company will have the best service and the lowest fees, and yes there can be a big difference in the fees that one title company charges vs another. Then once your offer is accepted, you will do what is called open escrow. The title company acts as a neutral third party holding all instruments necessary to the sale, including funds and deed. The title company will research the complete recorded history of the property, to insure that the title is free and clear of encumbrances by the date of closing and that all new encumbrances are properly added to the title. Some properties are subject to restrictions which limit various activities from building to parking restrictions. There may be recorded easements and encroachments, where others have limited rights to use your property.

How to Hold Title
You may wish to consult with an attorney or tax adviser, on the best way to hold title, the title company will be able to also help you decide the differences between all the ways you can hold title. Different methods of holding title have different legal, estate and tax implications, especially when selling or upon death of the title holder.

Time for Inspections
Once your offer is accepted by the seller, you’ll need to have professional inspectors evaluate your home’s major systems. Your agent may recommend other inspections, such as roof, chimney/fireplace, property boundary survey, well, septic, pool/spa, or mold.

Now that you have inspected the property, it is time for the Appraisal and Lending
A great agent will help you keep in close communication with your lender, who will let you know when additional documents are needed to approve your loan application and fund your loan. The lender will often send an appraiser out to the property and you may pay a fee for this service. Appraisers are specialists in determining the value of properties, based on a combination of square footage measurements, building costs, and recent sales of comparable properties. Throughout your transaction your agent should be periodically check with your lender to be sure the loan will go through smoothly and on time.

For more information and for any additional questions, please feel free to contact us at any time.

Now that you are finished with the inspection, and the appraisal is acceptable to the lender, and you have everything in place to close the loan, you need to prepare for, Moving In.

The hard part is behind you, but there are a few more steps before you can move in to your new dream home.

Final Inspection
A few days before you take over the property, we’ll do one last inspection to make sure everything is in order and the property is in the same general condition as when the contract was written.

Utilities and Services
You will have to change the utilities and services of the house over to your name. We will assist in this process by providing a list of pertinent companies and contact information. Once contacted, each specific company will make the transition as directed so that service is not interrupted.

Closing Escrow
When your transaction is nearly completed, the title company will provide you with a “closing statement” that details all of the financial details of your home purchase. We will go over this with you to ensure its accuracy. At the last step in the buying process, the title company will have you sign the final documents, including loan documents (“deeds of trust”). When everything is complete, the title company will distribute the appropriate funds, and order the recording of your transaction for you at the County Assessor’s Office.

Once the recording is complete you become the official new owner.

Congratulations! It is time to enjoy your new home and the many years of wonderful memories that are yet to come.

We have also compiled other articles that you may want to look at while you consider buying a house, MORE ARTICLES. Remember, that we are always here to answer any questions that you may have, and the information is always free. When you are ready to start your quest for your Dream Home, Schedule An Appointment with us, you will be glad you did.