The Buying Process

The Buying Process

Buying a home can get quite detailed. Here are the steps to take to ensure you’re prepared for the exciting road ahead.

Choose a Texas REALTOR^®

Why?  A Texas REALTOR^® will help you with all the following steps and more. As a Texas Realtor,  I will save you time and money by researching properties based on your criteria, helping you secure the best mortgage rates, counseling you on the offer amount and terms most favorable to you, and negotiating on your behalf.

1. Decide where, what and when

• Location: Decide how close do you want to be to your job, shopping, the kid’s schools, or entertainment? Decide which areas you want to live.
• Type of home: Is it a single family home fits your needs or condo/townhouses might be better oprion for you. A single-family house typically provides nice yard and gives you fewer restrictions on customizing your home. But a condo/townhouses offers amenities without yard work with mostly monthly mainenance fee. Are you looking for one unit or two unit houses etc.
• Age of the home: Existing homes have mature yards and established neighborhoods; however, they may need more maintenance. Although new homes aren’t always without problems, they usually need less maintenance initially. 

2. financing/ cash?

Unless you have a cash, you need to consider financing. Consider these factors and contact with lender to learn how much you can afford first:

• Downpayment: Most loans require a down payment. The amount varies, but 20% of the purchase price is typical for commercial loan however if you are qualify for FHA, it requires %3.5 only.  If you’re a first-time buyer or fall below certain income that government set, you may qualify for affordable-housing programs.  Generally, a higher downpayment means better loan terms and a lower interest expense on the mortgage.
• Qualifying for a loan: Contact a lender before start to look for an home to see how much you can affort.  Usually  a lender will look how much he thinks you can afford based on your income, employment history ( at least 2 years W2 required most of the time), assets (e.g., bank account balances, other property, insurance policies, pension funds), and debt.  
• Your comfort level: You don’t have to spend $250,000 on a home just because the lender says you can afford a $250,000 home. Please be consider your future and do math to see if you can pay that amount of debt.

3.  Offer

You’vealready know where you will buy your dream house and how much you can afford. Now you and I will work together find a house and make an offer.  I will be in you help/guide in this part of the process that involves many steps, including:

• Preparing a contract and the numerous details on it
• Handling negotiations with your best interests in mind 
• Inspections and option periods.

4. Secure financing

Unless you’re paying cash for the home, you’ll need get a loan. Be carefull when you are choosing your loan types and options  such as points, total lender fees, term of the loan, and penalties for early payment.  The lender will most likely require an appraisal to verify that the home is worth the cost of the loan as well as a physical survey in order to give you loan. Sometimes repairs may be required.  Insurance must be purchased.  All these conditions and others must be fullfilled before a transaction can close.

5. Closing

After weeks or even months of searching, pending periods and waiting for closing date, you will close the transaction, usually at the title company's office. The title agent will ask you to sign many, many documents and will explain each one.  You’ll present a cashier's check to the title agent, sign another document that itemizes closing costs (the lender will have given you an estimate in advance), and pay your share of the closing costs. Finally, you will receive a deed, transferring ownership rights to you!