The 9 Steps to Purchasing a Property
Purchasing a property requires time and effort, the following steps below will help make the process of purchasing a property smooth, understandable and help you make the best decisions through the process.
Step 1: Do Your Research
Review web sites, newspapers, and even magazines that have real estate listings. Decide what type of property that you want to purchase. Watch how long it takes for similar properties to sell. Pay attention to the prices of the properties. Are they steady or are they going up or down? You may notice that these trends will vary in different locations.
Step 2: What Price Can You Afford
How much money do you make annually? What are your current costs? Do you have a down payment? Do you need a down payment? It is common to be required to have up to 10 - 20% of the asking price for a down payment. Everyone’s financial situation is different. A lending company can best help you to know what the requirements for your situation. You should find a lender that you trust and that will provide the best service and product for the right price.
If you do not have a lender, I have provided a list of lenders below. I have personally worked with and trust each of them. I highly recommend them to anyone who is looking for a good trust worthy lender. Shop around some and find the lender that best suits your needs.
Danene Strand NMLS#442493
Loan Officer/Lending Manager
5926 Fashion Point Dr Ste 110
South Ogden, UT 84403
Phone: 801.645.5363
https://www.intercaplending.com
Jason Blood NMLS#262694
Loan Officer
OFFICE: (801) 506 1670
CELL: (801) 404-6420
EMAIL: Jason.Blood@chl.cc
FAX: (801) 303-8535
https://www.citywidehomeloans.com/jason-blood
Lenders have many competitively priced loan programs. You will have a plethora of questions when you are purchasing a property, especially if it’s the first time that you are going through this process. Having a lender that has exceptional customer service and that you are comfortable and trust will help make the process much easier.
Step 3: Get Prequalified and Preapproved
This is one of the biggest steps! Before you can start to work seriously with a realtor you will need to know how much you can actually spend on a property. Work with the lender that you chose to get prequalified. You will need to provide some financial information to your lender, such as your income and the amount of savings and investments you have. Your lender will review this information and tell you how much they can lend to you. At a later time but before you put in an offer you should get preapproved for credit. To do this your lender will need you to provide financial documents such as W-2 statements, paycheck stubs, bank account statements, and possibly others. Your lender will use this information to verify your financial status and credit.
Step 4: Find the Right Real Estate Agent
This is where I come in! As a real estate agent, I will provide essential fiduciary (legal and ethical) services to you when you’re buying or selling a property. As your real estate agent, I will provide you with helpful information on properties, homes and neighborhoods that are not easy for the public to access. My knowledge of the process of purchasing a property, negotiating skills, and familiarity with the area you want to live in will be extremely beneficial to you. In most cases, for (you) as the property buyer, my services don’t cost you anything! I am compensated from the commission paid by the property seller.
Step 5: Shop for Your Home and Make an Offer
Start getting out and looking at homes that you have identified in step 1 that is in your price range. Be sure to bring a note book and a measuring tape, it will be helpful to take notes. Taking notes will allow to compare all the homes that you walk through later on. Everyone has a phone that will take great pictures and videos, this is another great way to capture important information that will help you make the best decision.
Don’t forget to check the following:
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Plumbing… run the shower and check the water pressure. How does the water take to get warm? How old is the hot water heater? Is there a water softener?
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Electrical… flip the switches on and off.
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Open and close the windows and doors.
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Carpet and flooring
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Air Conditioner and Furnace… how old is it?
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The Roof… How old is it? What is the condition?
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Foundation… Are there any cracks?
Don’t forget the neighborhood and make a note of things like:
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Homes on the block… are they well maintained?
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Are there any Home Owner’s Association Fees?
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Are the roads busy?
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Parking… is there enough for family and friends?
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Location… schools, shopping, freeway access?
Don’t rush, think through the process and take your time. Once you make a decision you and I will work together to put the right offer on the table based on the property value analysis that I will prepare based on the local market. When you and the seller come to an agreement on the price, the property will go under contract. Once the property goes under contract there are other important steps that I will help you through to complete the property purchase process such as:
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Verifying the Seller Disclosure is submitted on time.
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That the buyer’s Due Diligence deadline is met.
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Buyer’s Financing and Appraisal Deadline is met.
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Settlement deadline is met.
Step 6: Get a Home Inspection
It is important that your purchase offer is contingent on a home inspection of the property to check for signs of structural damage or other items that might need repair. The contingency clause protects you by giving you an opportunity to renegotiate your offer or withdraw it without a penalty if the inspection identifies significant material damage. As your real estate agent, I will help you arrange to have this inspection conducted before the due diligence deadline with plenty of time to negotiate, if any issues are found.
The inspector with provide you and the seller a copy of the inspection report and the details of any findings on the during the inspection. You will then be able to decide if you want to ask the seller to repair anything on the property before settlement. You will have a chance to do a final walk through before settlement so you can verify that any required repairs have been completed.
Step 7: Home Appraisal
Your lender will arrange for an appraiser to provide an independent estimate of the value of the property that you are buying. The appraiser will not be directly associated with the lender. The appraisal will provide verification to the lender, the buyer and seller that the price of the property is fair.
Step 8: Title Insurance & All that Paperwork
Your lender will arrange for a title company to verify that the seller is the actual title holder of the property, that the property is free of any liens or claims. There is a ton of paperwork involved with the purchase of a property and the title company will organize and prepare all of the paperwork.
Step 9: Settlement then Closing
The settlement is the date specified in your purchase contract. At settlement, you will sign all of the paperwork required to complete the purchase, including your loan documents. It can take up to a couple of days for your loan to be funded after the paperwork is submitted to the lender. Once the monies are delivered to the seller or their lender, the applicable documents will be recorded with the county. At this point the closing has occurred or the Real Estate Purchase Contract has been executed and you can take possession of your new home or property!
