Purchasing a home is a very important decision and a big undertaking in your life. In fact, most people only choose a few homes in their lifetime. I am going to make sure that you are well equipped and armed with up-to-date information for your big decision. I am even prepared to guide you through every phase of the home-buying process. So let’s take an exciting journey together! I look forward to meeting your real estate needs every step of the way!

 

 

The Home Buying Process:

Before you began the home buying process, it is important that you get preapproved for a home mortgage. Doing so ensures that you know your exact price range so you avoid wasting time looking at homes that can’t afford, plus it gives you the opportunity to look at your finances and decide what you are comfortable paying.

Next step, find a Realtor®!

Realtors® can provide you with information about neighborhoods, market statistics.

When you meet with your Realtor® for the first time, you should bring your preapproval letter with you, as your Realtor® can then help you determine the right price range for you by giving you an idea of what you get for your money area by area, which helps you save time and gas by because you have identified the Austin neighborhoods that you should target, you may also discover that you don’t need to spend as much as you qualify for. You will also discuss what you want and need in a home, as this will also help you to determine the area that you should focus on.

Your Realtor® may ask you to sign a Buyers Representation Agreement. By signing this agreement, you are hiring an expert who, by law must represent you and your best interests above all others, and can guide you through the home buying process while helping you avoid the pitfalls of home buying that could result in your paying too much or missing out on home buying incentives. Your Realtor®, since they already know what your needs and wants are, will do the leg work for you and show you the best homes, so you won’t have to waste time and gas driving around picking up fliers, and calling off ads for homes that turn out to be sold. All Realtors® are required by law to have you sign the Information on Brokerage Services. Signing this document does not obligated you to use that Realtor®.

Make an Offer!

You found the right house, now what do you do? You make an offer. Your Realtor® find comparable sold properties to help you determine what you are comfortable with offering.

In Texas, home buyers are allowed to negotiate a number of days that you can spend getting home inspections, and doing other research that will help you determine if you are comfortable with buying the property, this is known as the Option Period. In order for the option period to be valid, money has to be paid; the traditional amount is $100. The option fee will be returned to you as credit towards closing costs if you complete the transaction and close/ settle on the house. If you choose not to buy it, the seller usually gets to keep the option money. You will also pay Earnest Money/Deposit; the amount is usually 1% of the offer price. The earnest money’s purpose is to show that you are serious about going through with purchasing the property; this money is held by the title company as the money has to be held by a neutral third party. If you complete the transaction, the earnest money will be credited back to you at closing, if you decide not to go through with the purchase and notify the seller in writing during the option period, the earnest money will be returned to you, if you wait until after the option period has expired, the seller can keep that money. If you cancel the contract to purchase due to issues with your mortgage application, such as a denial or the interest rate is higher than what was stated in the Third Party Financing Condition Addendum, or the property appraises for less than the proposed loan amount, your Earnest Money will be returned to you.

For Your Protection, Get an Inspection!

If you are purchasing a resale property, I recommend that you have a home inspector conduct a thorough inspection. The inspection will include the following:

• Appliances
• Plumbing
• Electrical
• Air conditioning and heating
• Ventilation
• Roof and Attic
• Foundation
• General Structure

The inspection is not designed to criticize every minor problem or defect in the home. It is intended to report on major damage or serious problems that require repair. If serious are discovered, the inspector will recommend that a structural engineer or some other professional inspect it as well.

You home cannot “pass or fail” an inspection, and your inspector will not tell you whether he/she thinks the home is worth the money you are offering. The inspector’s job is to make you aware of repairs that are recommended or necessary.

The seller may be willing to negotiate completion of repairs or a credit for completion of repairs, or you may decide that the home will take too much work and money. A professional inspection will help you make a clear-headed decision. In addition to the overall inspection, you may wish to have separate tests conducted for termites or the presence of radon gas.

In choosing a home inspector, consider one that has been certified as a qualified and experienced member by a trade association.

I recommend being present at the inspection. You will be able to clearly understand the inspection report, and know exactly which areas need attention. Plus, you can get answers to many questions, tips for maintenance, and a lot of general information that will help you once you move into your new home. Most important, you will see the home through the eyes of an objective third party.

Be sure to ask for the Energy Audit report if applicable.

Buying a New Home.

Why use an Agent to purchase a new home?

The advantages of having an agent help you purchase a new home are the same as those for purchasing a resale home…

• Representation
• Knowledge of the market
• Help in finding the perfect home quickly
• Expertise in contract writing/negotiation
• Closing assistance.
• Knowledge of special promotions and incentives that can save you money

The builder has a professional representative watching out for his/her needs, and you need the same expert representation.

It is very important that your interests be professionally represented when you are entering into a contract for a semi-custom or build-to-suit home. These transactions are complex and the contract details must be exact in order to protect you and to ensure you get exactly the home you want!

REMEMBER – the Builder requires that your Agent accompany you on your first visit to the Builder’s sales office, or they will NOT PAY your representative’s fee!

What is a Real Estate Closing?

A “closing” is where you and I meet with some or all of the following individuals: the Seller, the Seller’s agent, a representative from the lending institution and a representative from the title company, in order to transfer the property title to you. The purchase agreement or contract you signed describes the property, states the purchase price and terms, sets forth the method of payment, and usually names the date and place where the closing or actual transfer of the property title and keys will occur.

If financing the property, your lender will require you to sign a document, usually a promissory note, as evidence that you are personally responsible for repaying the loan. You will also sign a mortgage or deed of trust on the property as security to the lender for the loan. The mortgage or deed of trust gives the lender the right to sell the property if you fail to make the payments. Before you exchange these papers, the property may be surveyed, appraised, or inspected, and the ownership of title will be checked in county and court records.

At closing, you will be required to pay all fees and closing costs in the form of “guaranteed funds” such as a Cashier’s Check. Your Realtor® or escrow officer will notify you of the exact amount at closing.

What is an Escrow Account?

An escrow account is a neutral depository held by your lender for funds that will be used to pay expenses incurred by the property, such as taxes, assessments, property insurance, or mortgage insurance premiums which fall due in the future. You will pay one-twelfth of the annual amount of these bills each month with your regular mortgage payment. When the bills fall due the lender pays them from the special account. At closing, it may be necessary to pay enough into the account to cover these amounts for several months so that funds will be available to pay the bills as they fall due.

 

 

Contact me  today; I will help you get on the road to home ownership!