Purchasing a home
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Purchasing a home

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A step by step guide for home buyers

A step by step guide for home buyers

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Purchasing a home Purchasing a home Presentation Transcript

  • Purchasing a HomeA step by step guide for buyers
    By Mark E. Butler
    HRS Realty
  • Step #1 Call Mark E. Butler
    • Licensed Missouri salesperson since 2008
    • BS Finance & Banking Hampton University 2009
    • Successful closed over $2 million in sales of residential, commercial, and multifamily properties throughout the St. Louis Metropolitan Area.
    314 479 5968
    or
    markebutler@gmail.com
  • #2 Prequalification
    The first step in the home buying process is to become prequalified for a home loan by a reputable lender.
    To determine if you qualify your loan officer will take a look at your income, credit rating, savings, etc…
    If qualified, your loan officer will issue you a preapproval letter.
  • Make a list of what you are looking for in a home
    Number of Bedrooms
    Number of Bathrooms
    Location
    School District
    Price Range
    Style
    Give MARK a call and set an appointment to view the homes you are interested in
    QUICK TIP, be sure to bring a notepad and pen when viewing homes to make note of things you may forget later.
    #3 Searching for a Home
  • While viewing home make sure to observe the condition of….
    The Roof
    The Foundation
    The Plumbing Stack
    The Electrical Box
    The Furnace & Water Heater
    The Condition of Surrounding Homes
    #3 Searching for a Home (Continued)
  • Once you have selected a home, you must make a formal offer using a sales contract.
    Using the sales contract you will communicate to the seller the following
    Purchase Price
    Earnest Money
    Closing Date
    Closing Location
    All sales contingencies
    Closing Costs, etc…
    #4 Contract Time
  • Along with the sales contract the following items need to be submitted to the seller
    Signed Lead Based Paint Disclosure
    Signed Sellers Disclosure (If necessary)
    Preapproval Letter
    Copy of Earnest Money Check
    FHA Loan Provisional Rider
    Any riders if applicable
    #4 Contract Time (continued)
  • Earnest money is cash that you deposit with the “escrow officer” (usually the title company where you would close) at the time the contract is accepted. This shows the seller that you are serious about purchasing the home, and that you will follow through on all obligations within the contract.
    If you do not follow through with your obligations in the contract you risk losing your earnest money.
    Earnest money is only accepted in certified funds (cashiers check or money order).
    The earnest moneyis credited toward the purchase price of the home.
    #5 Earnest Money
  • After you have submitted your offer the Seller with either ACCEPT,COUNTEROFFER, OR DECLINE your offer.
    If the seller accepts the negotiation is settled
    If the seller counters your offer you mayaccept, counteroffer, or decline their offer.
    #6 Contract Negotiation
  • If the sellers declines your offer you may
    Draft a new contract and submit it to the seller
    Move on to another property
    Negotiating an offer can be a very emotional situation for both parties. I believe thatit is fair to compare the home to similar houses that have recently sold nearby and make your initial offer based on those results. You should never intentionally low ball a seller.
    #6 Contract Negotiation (continued)
  • Buyers are usually given 10 to 15 days from the acceptance deadline to have inspections performed.
    Types of inspections
    Home Inspection
    Wood Destroying Insect Inspection (Termite)
    Municipal Inspection*
    Gas Appliance Inspection*
    Inspectors typically give the buyer a “inspection report” after the inspection has been completed, which provides detailed results of the inspection.
    When purchasing a home in “as-is condition” this step is not included.
    #7 Inspection Period
  • Generally, sellers are willing to perform repairs requested by the buyers prior to closing.
    To have repairs considered, buyers must submit the requested repairs on a statestandard form along with any inspection report received.
    Sellers can accept, counter, or decline repairs similar to price negotiation.
    When purchasing a home in “as-is condition”, this step is not included.
    #8 Repairs
  • If you plan on using a mortgage loan to purchase your home you will be required to have an appraisal performed on the home.
    An appraisal will provide the lender with information on how much the home is worth (appraised value).Lenders will only commit to loan fundsbased on the appraised value.
    #9 The Appraisal
  • Scheduled 48 hours prior to closing
    The purpose of a walkthrough to is be sure that repairs have been made and the property is in the same condition that is was when you initially viewed it.
    It would also be wise to have utilities (water, electric, gas, etc..) changed over within 48 hours of closing.
    #10 Final Walkthrough
  • You will need to bring the amount needed to close the loan in certified funds (cashiers check, money order) at closing.
    You will also need to bring state issued picture I.D. (Drivers License).
    Closing can usually last from 15 minutes to 1 ½ hours.
    After you sign the closing documents, the home is officially yours. After funding (exchange of funds from buyer to seller) you can move into you new home.
    Be aware thatin some cases funds will be exchanged the next business day after you close. This usually occurs if you close late in the day (after 3PM) and your are using out a mortgage loan as means of payment. Plan your move in date accordingly.
    #11 Closing