Don't let selling or purchasing real estate become a stressful, aimless leap of faith. Let the professionals at Red Key Realty guide you through the process so your dream of home ownership can become a reality. Let’s take a tour of “THE PROCESS”, complete with some expert tips!
Get Pre-Qualified: Unless independently wealthy, most buyers will start with a trip to a mortgage lender – either locally or via internet. After providing proof of identity, employment, credit history, etc., it will be determined just how much you will realistically be able to afford. Once that has been determined, the lender will provide you with a “Pre-Qualification” letter. This letter is very important and serves as the financial basis on which the property search will begin.
Hire a Professional: If you had no construction experience, would you just go to the nearest lumber supplier, purchase materials and expect to be able to build a beautiful home? Of course, not! So, when it comes to making, perhaps the most expensive purchase in your life, why not get professional help? Here at Red Key Realty, we have a varied group of professional agents ready to assist you. Let them help you find your perfect home. Please feel free to contact our office so that we may arrange the initial meeting!
Consultation: Here are a few things to consider prior to meeting with your real estate professional. 1.What are the features that I must have in my home? How many bedrooms; whether multi-level; garage; condo or townhouse and so forth. 2.Where do I want to live? Is it in a particular neighborhood, or perhaps near certain amenities, such as a bus line? Do I want to live in neighborhood with an HOA/POA? 3.When do I want to move? Am I limited in my time frame due to school or job schedule?
Start your search: Once you feel confident you have the answers to the previous questions, it is time to consult with the professionals! After discussing your needs and having the necessary paperwork signed, you and your agent are now ready to work together to make your dream of homeownership a reality. One of the key assets available to your agent is the local Multiple Listing Service (MLS). By skillfully entering your criteria, a list of available properties will be given to you for review and/or for showing. Remember – the list changes daily so you can be sure your agent will stay in close touch with you!
Secure your purchase: So the day has come – you have found exactly what you want with all the features you have been looking for; great location; and within budget, too. Your agent will now guide you through the process of negotiating the terms of a Contract to Purchase. Once all the terms have been agreed upon and documents signed, you are now “Under Contract”. Congratulations! Now you and your agent schedule and complete any home inspections; your contract is sent to both your lender and Attorney and you begin getting ready for your move.
Closing: Well, the big day has finally arrived! Your Attorney’s office will coordinate with your lender a time for you to sign all necessary documents. Hopefully you have remembered to contact all utility companies to have service transferred into your name. Once the new deed has gone “on record” at the appropriate court house, you have successfully become a new homeowner – Congratulations! Your agent, including the entire support staff here at Red Key Realty sincerely wish you the best of homeownership!
Here are some tips that can help keep things “real” when meeting with a lender:
1. Check your credit! When is the last time you checked your credit scores and reports? Nothing can put a damper on purchasing a home more than a credit report with wrong information. When pulling your report, look for errors! Check the report for unpaid accounts or accounts reported as being in collection. Some credit cards supply free, monthly credit scores along with advice on how to make improvements. Some will even allow you a “what if” scenario and predict the effect on your credit score. Bottom line, if there is anything you can do to increase your score and solidify your credit, NOW is the time to do so – even before you meet with a lender.
2. Watch your spending! Once you have gotten your credit where it should be, KEEP it that way. That means doing whatever it takes to keep your lender’s pre-approval letter valid. And don’t even think about furniture or car shopping. Remember whatever sacrifices you feel you are making now will prove to be well worth it once you are handed the keys to your new home!
3. Needs vs. Wants: I knew a young man once that couldn’t wait to buy himself a big, bad truck. You know what I am talking about – sits high above the traffic; tires that could dig 3 feet into the dirt; an engine that rattles windows. About a year later, this young man finally understood the difference between “wants” and “needs” when he found himself having to sell it because he could no longer afford the gas it took to get him to work. Don’t make the same mistake when it comes to purchasing a home. Determine the difference between your “wants” and “needs”. It could save you untold years of stress as well as valuable resources!
It may take some time and lots of effort to get your financial situation in order, but doing so can be one of the most rewarding experiences as you head in the right direction toward home ownership!
