Resolution #1: Figure Out What You Want This is the fun part! You need to decide what, where, and when! What style house are you looking for, how big, how many bedrooms, bathrooms etc.? Do you want a wooded lot, an open lot? Take your time with these decisions as buying a home is a major commitment and you want to be somewhere you can live happily for several years! Resolution #2: Get Your Finances Ready Once you have an idea of what you are looking for it’s time to determine what you can afford. How much do you have available for a down payment? What is your monthly budget for a mortgage payment? Do you have money for closing costs and taxes? You should start the mortgage process before bidding on a home. Meet with your local lenders and determine not only which program best suits you and your needs but how much you can qualify for. Resolution #3: Get Your Pre-Approval “Pre-approval” means you have met with a loan officer, your credit files have been reviewed and the loan officer qualifies you for a given loan amount with one or more specific mortgage programs. The lender will provide you with a pre-approval letter, which shows your borrowing power. You can visit as many lenders as you like and get several pre-approvals, but keep in mind that each one carries with it a new credit check, which will show up on future credit reports and could damage your credit score. The more inquiries you have the lower your score goes. We recommend you work with a local lender as they have the best knowledge of the local market. Resolution #4: Find Your Realtor or Real Estate Agent: Most sellers will list their homes for sale through an agent. But be aware that those agents work for the seller, not you. You need a buyer’s agent. Get in touch with a Real Estate Agent that you are comfortable with and that can help you find the home that is best for your personal situation. A buyer’s agent has the same access to homes for sale that a seller’s agent does, but their loyalty lays with you not the seller. We are partial to the folks at Foran Realty, give them a call at 508-385-1355 or shoot them an email at sales@foranrealty.com and you will be in great hands! Resolution #5: Find Your New Home Now we are back into the fun stuff. A home is more than just a collection of bedrooms and bathrooms. Several properties with similar amenities may very well represent completely different designs, commuting distances, lot sizes, tax costs, interior dimensions, and exterior finishes. Here’s where the information you gathered in Resolution #1 comes into play. You already know what you want. Resolution #6: Make An Offer Once you find the house you want, it is time to make your offer. When working with a buyer’s broker, get advice from him or her on an initial offer. Try to line up comparable data on at least three houses that have sold recently in the area. If you really want the house, don’t lowball the offer. The seller may give up in disgust. Remember, that your leverage depends on the pace of the market. In a slow market, you’ve got muscle; in a hot market, you may have none at all. Once it is time to formally make your offer don’t forget about your contingencies. Typically we see Mortgage, Inspection and Title V as “standard” contingencies. Other types of things could be the inclusion of furniture, appliances or just about anything else. You also need to make a good-faith deposit — usually 1% to 10% of the purchase price — that will be deposited into an escrow account of the listing agent’s broker. The seller will receive this money after the deal has closed. If the deal falls through, you will get the money back only if you or the home failed any of the contingency clauses. For planning purposes you should have your home inspections completed within 2 weeks of the accepted offer and before you sign the purchase and sale. Plan on closing at least 30 – 45 days from the signing of the P&S. On October 3, 2015 new closing regulations came into effect. Collectively these are known as “TRID”. Under TRID the process has changed and the length of time to close has extended. Your agent and mortgage officer should be well versed in this and be able to walk you through the process to ensure a smooth and on time closing. Resolution #7: Understand Your Mortgage Options Now call your mortgage broker or lender and submit your formal mortgage application. Be sure to include the information from your preapproval as you want the process to be as streamlined as possible. Resolution #9: Close On Your New Home At three days before the actual closing, you will receive a final Closing Document (CD) from your lender that lists all the charges you can expect to pay at closing. Review it carefully as it will detail all of the closing costs you will be required to pay at the closing. It should also detail all expenses that you have already paid including inspections, application fees etc. The actual closing is somewhat anticlimactic, but your buyer’s agent can brief you on the particulars. Resolution #10: Tie Up Loose Ends You’ve done it. You’ve looked at properties, made an offer, obtained financing and gone to closing. What’s next? Those papers you received at settlement are extremely valuable, so hold on to them! Also at closing, determine the status of the utilities required by the home, items such as water, sewage, gas, electric and oil service. You want utility bills to be paid in full by owners as of closing and you also want services transferred to your name for billing. Usually such transfers can be done without turning off any of the utilities and should be done prior to closing. When you move in, you may want to replace all of the locks just to be safe. Finally and most importantly……Enjoy your home!!!! Owning real estate involves contracts, loans, and taxes, but ultimately what’s most important is that home ownership should be a wonderful experience! The Experts at Foran Realty are ready to assist you with all of your needs, whether it be as a selling agent or a buyer’s agent we are just a phone call away! ]]>