Buying a home is an important decision. To ensure success, we are here to provide some resources that will help you in this process. The internet will initially assist you to locate and visualize your project, as well as review listings and narrow your research. A Real Estate Agent will bring more details regarding the full purchasing process; agency relationships, buyer/seller contracts, inspections, appraisal, title company, financing solutions (Loan, bank etc.…)
1) Identify your needs
Before purchasing a house, you will want to ask yourself multiple questions regarding your present lifestyle, as well as anticipate your future needs. We recommend drafting your need-to-have features and you’re like-to-have features.
Love spending time outside grilling? You may want a pool and will want to review yard options. Love hosting family or friends for dinner? Do you like to host at a kitchen island or dining table? Are you a “wine snob?” Consider a room for a wine cellar!
It is also important to think about what type of home you are looking for: apartment or house? Condominium or co-op? Townhouse or single family house, new or used?
The next step is to think about your future plans. Is the house you are selecting suitable for kids? Do you have enough bedrooms? Is this house in a good neighborhood and close to a good school? Is there a recreational area?
The location of your dream house is just as important as its features. How long will your commute time be? How close is the supermarket, the bank, the hospital, the pharmacy, the highway? Be sure to choose a neighborhood that fits your lifestyle. Make sure to drive around the area multiple times to see if you like it. Don’t forget, the neighborhood plays a big role in the value of your home!
The Internet can show you listings and available properties to buy; an agent will answer your questions, will share his/her knowledge and expertise of the market, evaluate your project and ultimately direct you to properties that match your needs. At the MVB group we are committed to assisting you during the research & selection phase. We are available any time to answer your questions, wherever your geographic location. After finding your property, we will provide support during the purchasing process, and will handle all administrative paperwork required for the real estate transaction. At the MVB group our job is done when you own your dream home!
2) What can you offer?
After solidifying your decision, the next step will be to confirm your offer preference. It is important to review your income, savings, monthly payments and debt. We recommend confirming you are pre-qualified for a mortgage loan early on in the process, as you have a better chance to get the house you desire. Do not forget that several buyers may be envisioning your same dream home! Pre-qualification also assures the seller that you are serious and can afford the house.
A pre-approval is a simple calculation done by a mortgage lender that tells you the amount you will be able to finance through the loan and what your monthly payment options will be.
There are several criteria that are reviewed to calculate the potential price of a house:
– Gross income
– Down payment
– Closing costs
– Credit history
– Mortgage type
– Current interest rate
A mortgage professional will review your current situation and recommend options to determine what you can afford.
3) Do you already own a home?
Buying a new home when selling your current home at the same time can be a bit tricky. However, this can be done effectively with preparation work and organization done on the front end. Before selling your house and buying a new one, confirm your current house’s comparable market value to know where you stand.
What if you sell your house before you find your new dream home? Do you have a place to temporarily reside? Have you reviewed storage options?
What if you find your dream home before selling your current residence? Are you open to rental options? Do you have enough money in the bank to support the cost of two houses?
Buying a second home is globally the same as your first purchase, primarily dependent on your financial stability and mortgage options. Just know that in case you chose to rent the place, the mortgage and the down payment may be slightly higher.
4) Shopping for a home
Buying a home is a very important decision to make that involves a large investment of time and money. This is why you need to choose an experienced real estate agent that listens and understands your needs. At MVB group, our agents are dedicated to find you the best home and will follow you during the entire purchase process.
MVB Group will:
– Select homes in order to match your needs and criteria
– Schedule appointments with sellers
– Track properties that catch your eye
5) Making an offer
As soon as you as you find your dream house, MVG Group will initiate extending an offer. We will assist you during the financial aspects of the transaction and provide guidance so that your offer has the highest opportunity to succeed.
Under current market conditions, we see most houses have multiple offers on the table. If you wish to lead the transaction with the seller directly, MVB Group will respect your wishes. However, we do not recommend sharing any information about your current personal or financial situation, or even feelings about the property, as these details could work against you during negotiations. If you chose to use MVB Group for offer negotiations, we can ensure you professionalism and efficiency representing your interest the best way possible.
6) How much can you offer?
At MVB Group, we will share our knowledge and provide competitive market data to ensure your offer aligns with pricing in the area for similar homes.
In addition to competitive market data, here are some additional parameters that will assist you in your offer decision:
– State of the house, does it need repairs or fixings?
– Is the current market situation a buyer or seller’s market? In laymen’s terms, a buyer market means there are a lot of homes to choose from, and prices are relatively easier to negotiate. Conversely, a seller market offers few homes to sell; prices tend to be higher and harder to negotiate.
– Your ceiling: Know the amount of money you can spend, (pre-approval credit, money you have in the bank.) Remember, advertised price of a home does not reflect what you will pay at the time of closing, it is just the beginning of the journey! Negotiating will play an important role in the game.
a. Lease option
A lease option is an agreement between the seller and the buyer to purchase a home after renting it for specific period of time. A portion of the rent would apply to the purchase of the house, referred as rent credit. Most lending corporations will accept rent credit as a part of the down payment if the rental payment exceeds the market rent and if a valid lease-purchase agreement is in effect. A copy of the valid lease-purchase agreement must be attached to the loan application.
b. Buying with cash
Buying a house with cash will allow the buyer to close faster. Effectively, this typical buyer will avoid the loan qualification process, mortgage, loan origination fees, required appraisal from the lender and some closing costs.
Good job, you have made an offer and reviewed all documents regarding the condition of the house, but before finalizing your offer, we strongly recommend consulting with an inspector for a full home inspection in order to avoid additional future cost that can be detected after the home is officially yours.
A full inspection takes on average 2 to 3 hours and cost between $300-600. We recommend you to attend and ask as many question as possible, better to be safe than sorry!
A standard house inspection will cover:
– Room reviews
– Exterior home components
– Electrical systems
– Foundation and structural components (interior and exterior)
– Heating/air conditioning system
– Plumbing systems
– Attic, basement and crawl spaces
Subscribing to an insurance to protect your house is a must do! If the law does not require homeowner insurance, the mortgage lenders will! A standard policy usually will suffice, however, be sure to review all the terms and conditions. Additional insurance coverage such as flood insurance is not part of standard packages.
9) Escrow (Close of Sale)
MVB group will follow you during the closing process. Ultimately, a Title Company will be hired to review all recorded documents linked to the deed of the property; easements, liens, tax assessments, covenants, restrictions, homeowner association. The buyer and lender have to approve the title report before closing and then the parties have to sign the closing documents. The preliminary title report becomes final and foundation of the deed. When everyone agrees that all papers are in order, the buyer submit payment to cover the closing costs and finally you receive the key of your new home!