The Buying Process can be daunting especially for First Time Home Buyers. Here are the Big Picture Steps:
- Did you know that the Seller pays for the Realtor’s Commissions ? Reach out to Driskill Realty and we will help you with the next steps.
- Make a list. Write down “needs” versus “wants”. Share this list with others living in the same home. Compare lists. How many bedrooms? How many baths? 2 story or 1 story ? Big yard or small yard? How important are the schools to your decision? HINT: Even if you have no children Schools are Important! even for Resale considerations.
- Develop a budget. Mortgage = PITI = Principal, Interest, Taxes & Insurance. These 4 combined should not exceed 35% of your budget.
- Sit down with your Driskill Realty Agent and discuss neighborhoods. Location is important too. They will help you understand which neighborhoods have MUD, PID, HOA (most neighborhoods) and which do not. Are you going to operate a Day Care business from your home? Then an HOA neighborhood is not for you. These considerations and more are ready to be discussed by your Driskill Realty Agent.
- New Construction or Previously Owned. New Construction will be Constructed with modern Code Standards. Previously Owned is likely to have bigger bedrooms and larger yards because land prices were cheaper then.
- Start your Loan Pre-Approval. If you do not have a Mortgage Company in mind, Driskill Realty can provide some contact info of some trusted Mortgage Brokers whom we have dealt with in the past. We will give you a list of at least 3. Then you can shop for who has the best program/rate for you. Is cash tight? Then pack what you can into the loan. Are rates high or you want the lowest possible house payment? Then make a bigger down payment. Every situation is different. Now, Wait for the Pre-Approval.
- At this point you are ready to earnestly look for homes in the neighborhood(s) discussed earlier with your Driskill Realty Agent. You are armed with a list of needs (and wants), you have a budget, you have an idea of what type of home you are interested in and you know what you are qualified for on your loan. Stay within your budget ! Keep enough cash to cover closing costs and some reserve. Closing Costs will vary, but budget at least 4% of the purchase price. Ask your Driskill Realty Agent to generate an estimated Closing Cost worksheet for a home in the neighborhood you are interested in. Gather the data your Driskill Realty Agent provides and let it soak in. We want YOU to be able to make an informed decision.
- Always, Always view the home in person. I call it the “smell” test. If the house smells funny in the first 5 seconds when you walk in … then there is an issue. Ask your Driskill Realty Agent what they smelled. Musty air, Pet odor, Smoke/Nicotine odor, Sewer smell, Chemicals. What you smelled in the first 5 seconds or less is the “real smell” of the home. That is how quick your brain will filter the smell and process it to determine if it is a threat or not. Once your brain decides it is not a threat then the smell very quickly fades. That is why it is said that people do not smell their own home. Musty air may be fixed with just a new air filter or maybe there is a mold problem. Pet odors can be costly. Dried or wet Pet Fluids can be seen with a black light since they are fluorescent. Smoke/Nicotine may never leave a home. Sewer smell could be a dried out toilet or more serious – a broken sewer pipe in the wall or under the foundation. Chemical odors could be dangerous. Very important to personally and not virtually view a home you may live in for years. Check out every room. All these things can be checked out by a licensed inspector.
- Take your time and find the right home. Your Driskill Realty Agent will walk you through the process. Compare and contrast your “find” with homes above and below your price point. Then you will know for sure that you have selected “the” home. Ask questions.
- Discuss with your Driskill Realty Agent what offer should be presented on “the” home you have selected.
- Once it is negotiated and both sides agree to the terms then the offer is said to be Executed and it turns into a Contract. Time is of the Essence.
- Always have an Option Period. This allows you access to the home and it allows you to bring inspectors to view the home. Driskill Realty has a list of Licenses Home Inspectors if you do not already have somebody in mind. They will look for what is wrong with the home. During the Option Period there is a negotiation for Repairs found by the Licensed Inspector. Your Driskill Realty Agent will negotiate on your behalf those repairs.
- Simultaneously, work on your loan. Provide any paperwork that your mortgage broker asks you for. Do it same day. Scan and email. There will be lots of that. It may seem like punishment, but the home is the prize at the end.
- There is more detail than this, but you are now armed with the basics. Remember, no two situations are the same. Your experience may be slightly different than what I have described here. Your Driskill Realty Agent is eager to help you find “the” home. If you have reached this far then you have earned your part of the American Dream. Home Ownership is one of the most fascinating parts of the American Experience. Give us a call to start the process today.
For a No-Obligation Conversation with an Agent, Call Today at 214-973-3400. We are here to help you!
