I Want to Buy a Home
Purchasing a home is one of the biggest, most important investments you’ll make. Having a WindChime Realty professional by your side will help make your home-buying experience more enjoyable and less stressful.
Below are the basic steps in the buying process
Searching for a Home
Determining What You Can Afford
Your first step is to fully understand your finances. It’s a necessary step in order to determine how much you can afford. Talk with your banker, or we can connect you with one of the lenders we’ve worked with and trust.
Understanding Down Payments And PMI
Typically, buyers put down 5% to 20% of the purchase price, but this can be as little as 3%. Buyers putting down less than 20% are required to pay Private Mortgage Insurance (PMI) monthly until they build up 20% equity in their home.
Looking For A Home To Buy
Once you decide what type of home you want, (single family, attached, etc.) you should make a list of your “must-haves” and your deal breakers. Think about how your needs may change in the future. It’s easy to get overwhelmed with so many possibilities, so keep your lists limited to the things that are most important to you.
You Found A Home. Now What?
You found a home and you want to place an offer! This is where your WindChime professional’s research and knowledge of the market will determine a fair offer price while making sure you stay within range of what you can afford. Your agent will discuss Due Diligence and Earnest Money that will be included in your offer. Remember, your agent is there to help and protect you along the say - don't be afraid to ask questions
You're under Contract
Due Diligence
Due Diligence is a period of time you and the sellers agree upon, with a small deposit from you to the sellers to do the following:
The Appraisal
Once your offer is final, your lender will order an appraisal to get a professional opinion of value on the property. The appraisal is a necessary step in getting your financing secured and protects both you and the bank by making sure the home's value matches the agreed upon sales price.
The Home Inspection
Home inspections give you the opportunity to have the home thoroughly examined by a professional. He or she will provide you with a detailed report on the overall condition of the house, including outlining any issues and necessary or recommended repairs. If any major issues are noted in the report, you can try to renegotiate the purchase price with the seller, and/or ask the seller to make repairs, or you may back out of the offer altogether. The penalty of backing out, however will cause you to the due diligence money you gave the sellers.
Finally....The Closing
With due diligence complete, you are ready to move forward. This is when your agent, your closing attorney, and your lender will navigate together and gather all pertinent information. With this information, your attorney will put together the "Settlement Statement." This document lays out the final details of the loan and closing costs. Your agent will review this with you and determine whether or not everything is correct.
