Not a first time home buyer? That's okay. Even veteran home buyers forget the particulars when pursuing the purchase of a new home. You may need a refresher, or you may be a first-time home buyer who wants to know the ropes. Either way, there are several items you'll want to be aware of even before you start looking for another home.
Follow the steps below so that you don't skip a beat in the process. This will ensure you are getting the very best deal possible on the purchase of your new home.
* Free credit report. Before you get started, order your free credit report from all three major credit reporting bureaus. They are Equifax, Trans Union and Experian. By law, the credit bureaus are required to provide you with a free credit report every twelve months. Your goal will be to make sure you have the highest possible credit score. A high credit score will enable you to be approved for the lowest possible interest rate.
* Inaccuracies, negative info or inquiries. Comb through your credit reports for any information you perceive as being inaccurate, negative information that is incorrect and inquiries that you did not approve. If you find items that need repair, circle them and note them as being inaccurate, wrong negative information or unapproved inquiries. Send a letter to each of the credit reporting bureaus with a copy of the credit reporting pages that apply, along with any support documentation. Send a copy only, and keep the originals for your own files. The credit reporting bureaus have 30 days to respond. If you don't find anything that needs repair, then proceed to the 4th bullet.
* Ready, set, go! Once the credit reporting agencies make the updates and corrections, you are ready to move forward.
* Home wish list. You'll want to identify everything that you want in a home. Include the geographic location, school district or school, square footage, number of bedrooms/bathrooms/garages, style of home (ranch vs. multi-level or others), hardwood floors, type of kitchen (eat-in vs. formal) and anything else you can think of. Include amenities like a central vac, built-in microwave or heat pump. All this will allow you a basis to begin your house hunting venture.
* Get pre-approved. Licensed real estate agents will typically not help you look for a home without being pre-approved for a home loan. Do yourself a favor in order to get the best rate possible by shopping around. If you request interest rates from several lenders within a ten-day or less window, it usually does not negatively impact your credit score. Check out the company's reputation. You can do a search on the FCC website, check with the Better Business Bureau and contact the Federal Banking Commission to see if you find any negative information about the company. Make sure you get the interest rate in writing, along with ALL fees prior to agreeing to proceed with the loan. Once you find a lender you think you can trust, get pre-approved for your home loan.
* How much are you pre-approved for? Getting pre-approved for a home loan will tell you how much you are pre-approved for and will give you a gauge as to how much you will want to invest in a new home. Decide how much you will want to invest overall and how much your down payment will be.
* Find a licensed real estate agent. Some people prefer to interview real estate agents to see what each might do for them. Others just want to sign up with the top seller of the real estate agency. It's your call. If you decide to interview agents, just be sure you have a list of questions and expectations you present to each. Decide on an agent you want to use and sign the buyer's agreement.
* So many homes, so little time. Your licensed real estate agent should provide you with a list of homes that meet your criteria and be willing to take you to shop around. Your agent should also provide you with a comparative market analysis for each home you are interested in, so that you may make a competitive offer.
* Other offers? Once you decide to make an offer on a home, ask your agent about whether they know the seller's motivation - bankruptcy, estate sale, etc. Also, ask if there are any other offers, liens, easements, zoning changes and neighborhood crime.
* Scrutinize the Seller's Disclosure. Make note of how old the following are: roof, central heat/air, electrical and plumbing. Depending on the age and condition of each, these may be bargaining points in negotiations.
* Make an offer. At this point, you should have as much information as possible about the home prior to inspections. You should be informed enough to make the first offer.
* Select a title company. Once the seller accepts your offer, you'll need to select a title company. The real estate agent may tell you that their user uses specific companies for the inspections, but theirs is not always the cheapest or best. By law, you can shop around for your own. Just make sure they have a good reputation.
* Inspections, warranty, insurance, lead paint. Depending upon the inspections your lender will require, you'll probably want to schedule a home inspection and termite inspection. A home warranty may be another purchase you'll want to consider. Homeowner's insurance will be required. If the home was build prior to 1957, get it tested for lead paint. Again, shop around for the best rates and reputable companies.
* Be there. Be in attendance at all inspections. Make note of everything you see that needs repair or presents a health risk - e.g., moisture, mold, pests.
* Negotiate. If you find anything that legitimately should be used in negotiations, then negotiate. Present a new offer. Exchange the repairs for money off the purchase price, or require that the repairs be done and keep the purchase price. The lender may require that the repairs or improvements be done prior to closing, anyway, so consider your lender's expectations in the negotiations.
* Plan the move. Once your final offer is approved, you'll know the closing date. Prepare your family for the move - e.g., boxes, take time off, hire a moving company.
* Final walkthrough. When you do your final walkthrough, make sure to note anything that was not taken care of. If there are repairs that were not completed as agreed upon, don't sign on the dotted until they are done.
* Closing. When you go to the closing, scrutinize your Declarations sheet to ensure that you are only paying for what you agreed to pay for. If it looks good, give your John Hancock and close on your house.
* Happy home owning. This is a no-brainer. Time to move into that house and make it a home!
Inside San Antonio is a small real estate company in San Antonio. Their site has general information about insidesanantoniorealestate.com San Antonio real estate along with information on San Antonio schools. They also provide market statistics on their insidesanantoniorealestate.com/category/sanantoniorealestateblog San Antonio real estate blog.
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