Buying a Home

1. Choose a realtor with whom you feel comfortable, and have him/her explain what kind of professional relationship you will have. Some states require realtors to indicate in writing whether they are buyers agents, transactional agents or if they will not represent your interests at all.. Terminologies differ from state to state, but your realtor should be able to explain this relationship to you.

2. Before you actually go out and physically search for a home, it is a good idea to do some preparatory groundwork.  You need to find out about the financial aspects of your forthcoming investment. It is advisable to sit down and discuss such things as your annual salary, your employment, your savings and assets, your debts and other financial responsibilities, the fees that are associated with the purchase such as attorney's fees, closing costs, inspections, taxes and insurance. Mortgage consultants are more than willing to provide this service at no cost or obligation to you. No one is being "nosey"; it is necessary to understand these factors first in order to get a good idea about the price range of the homes that you will be comfortable with.

2. Choose an area that you like. If you are unfamiliar with the areas, ask your realtor to find you an area that suits your needs. One of the most important considerations is the distance to your work and the associated traffic patterns. Remember, you can change a house with redecorating, repairs and additions, but you can't move the house.

4. Share your needs and desires with your realtor: style, age, number of bedrooms, baths, basement, garage, land, heating type, fireplace etc. This is the realtor's job-finding you the home that fits your specifications while saving you time and effort.

5. As you see homes with your realtor, collect all the fact sheets and take notes on the houses you see. HINT: Because you may see many houses, it is helpful to remember those you see by identifying one of their major attributes. For example, the house with the long driveway or the one with the stained glass in the front door.

6. You find a house you wish to purchase! Your realtor will sit down with you to write up a formal offer to the homeowners. Often, a "good faith" deposit check or "earnest money" is expected. It is placed in an escrow account and will be used as part of the down payment; if the offer is not accepted, the deposit money is returned to you. A "Homeowner's Disclosure Form" detailing any structural, functional or environmental problems that the homeowner is aware of may be available for your review. In some states this is a required document.

7. Your offer is presented to the listing agent and the homeowners. The owners may accept your offer in its entirety; however, they may choose to make a "counter offer" of another price, or they may wish to change the terms of the sale. Such things as the closing date, items within the house or property to be left or removed are often detailed in this working document. The listing agent and the selling agent will work together to come up with a contract for sale that is agreeable to both parties. Changes that are made are initialed by all parties on the original contract offer.

8. When the contract is signed by both buyers and sellers, it is considered an "executed" contract. In some states, there is a time period, called a "recession period" during which time the buyer may change his mind about the purchase. Check with your realtor to find out if there is such a grace period in your state. In some states, during this time period, attorneys can review the contract and make adjustments to the contract.

9. It is time to apply for a mortgage and arrange for home inspections for the structure and for wood destroying insects, radon and the presence of mold. Your realtor may be able to recommend reliable companies for those inspections. The time periods and procedures for dealing with concerns about the results of inspections are spelled out in the contract. If you have any questions about the inspections or the mortgage application process, ask your realtor to explain the procedures to you.

10. You will receive a detailed report from the inspection company. Your mortgage company may wish to have a copy as well. Following the procedures spelled out in the contract, respond to any concerns or problems that the home inspection has revealed.

11. Additional down payment may be due at some specified date after the effective date of the contract and placed into an escrow account.

12. Unless it is a cash deal, the mortgage commitment process usually takes about 30 to 45 days.

13. Your attorney and/or title company should keep you posted regarding their activities on your behalf. They will be taking care of the title searches, deed and other legal matters. Your realtor should also keep you posted on all aspects of the process.

14. On the day of the closing, you and your realtor will walk through the house to be sure that everything is as expected. The home should be in "broom clean" condition.

15. Before the closing actually takes places, you will be provided with a "Good Faith Estimate" of the closing costs called the "HUD Statement."

16. At closing, at your attorney's office or the title company's office, any additional down payment is provided, mortgage monies are collected, closing expenses paid and all the documents are signed, and you are given the keys to your new home. Congratulations!

*Please note that this is a general outline for the process of purchasing a home. The process and the legal terminologies may differ from state to state. Contact your realtor for specific information.


Art David is a realtor in Naples, FL with Coldwell Banker Residential Real Estate, Inc. Before moving to Florida, he was a realtor for 14 years in New Jersey with Weichert, Realtors.


Art & Sharon David
Coldwell Banker Residential Real Estate
800-562-0233
239-250-5113 direct
239-263-3300 ext 186
www.Naples4u.com

"WE PROMISE TO FIND YOU THE PERFECT HOME IN PARADISE"

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