BUYING A HOME 101

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Buying a home has many components associated with the process. Although every transaction is different, below you will find steps linked with most real estate purchases.

  1. Hire a buyers agent. A crucial step since it is essential to have an experienced Broker protected your interests.  Using the services of a buyer’s agent in the State of Idaho is free to the buyer in 99% of all real estate transaction.  Choose wisely!
  2. Get school play set installation pre-qualified.  A pre-qualification will provide you and your agent essential knowledge prior to step 3.  Visit your local bank or mortgage broker.  Or, ask me for a list of home loan specialists that have provided top-notch service along with lower fees.
  3. Start browsing for homes online—if you haven’t already. Go to www.TrustIdaho.com to view property descriptions, interior photos, virtual tours, community information, school ratings and much more.
  4. View property.  By now you and your agent have probably have a list of homes to view.  Rely on your agent to schedule appointments and accompany you to all viewings. Especially if you are looking at houses for sale in beaufort.
  5. Write a purchase and sale agreement. Now that you’ve found the home you would like, it is time to write an offer.  Consult with your agent for strategies.  Things to take into consideration are the following:  how many days on the market?  Short Sale or bank owned?  How much interest is there currently on the property? (your agent will find this out for you)
  6. Negotiate.  An essential element of the Broker’s duties.  Hiring an experienced real estate broker that has been involved with hundreds of transactions will have the negotiation skills that will save you time and money.
  7. Earnest money deposited.  Usually after the offer is accepted your earnest money will be deposited in a non-interest bearing trust account.  Your earnest money is credited to you at closing and can be returned if you are unable to obtain necessary financing or have an unsatisfactory inspection or appraisal.
  8. Open escrow or submit your offer to the title company agreed to on the purchase and sale agreement. Your buyers agent will coordinate this step for you and will review the title policy ensuring that you have clean title at time of closing.
  9. Order an appraisal. Your lender will typically coordinate the ordering of the appraisal.  The purpose of the appraisal is to ensure value and safety for you and the firm providing financing.
  10. Review and execute all necessary disclosures.  Types of disclosure may include a Seller’s Property Disclosure Form, A Lead Based Paint Disclosure, FHA Disclosures, Lender Disclosures—so on and so forth.  Your agent will help make sense of it all.
  11. Get a home inspection—even if the home is brand new. One of the most important aspects when purchasing a home.  Your inspector’s job is to go over your future investment with a fine-toothed comb.  He or she will typically provide a report of the findings.  Ask your agent for a list of quality inspectors if you don’t already have one.   If there are problems, you have the right to request that the seller make necessary repairs.
  12. Removal of all other contingencies. These contingencies could sewer video inspections along with other miscellaneous contingencies—depending upon the type of property being purchased.
  13. Get Homeowners insurance. Provide to your lender proof of insurance so that it can be reviewed and approved prior to closing.  It is essential to have proper insurance yet remember to insure the structure, not the land.  I suggest shopping for the best insurance rate.
  14. Conduct a final walk-through. Done to ensure that any repairs requested were completed such as a roof replacement, along with making certain there was no damage to the property after the inspection was completed.
  15. Sign closing documentation. Typically done at a title company.  Your lender and agent will most likely be present to walk you through the documentation.
  16. Deposit funds with the title company. Depending upon the type of financing you choose to use, a check for your down payment and closing costs may be required unless you are taking advantage of the first time homebuyer tax credit.  The title company will verify funds and also request funds from your lender.
  17. Get keys. Within 24 hours necessary monies will be transferred and the property will be recorded in your name.  At this time the home is officially yours.

Make sure to keep in touch with your agent.  You may have questions after the fact or others that could use the services of a knowledgable real estate broker. Our  job doesn’t end at closing.