Real estate transactions are complicated. As professional, licensed Texas REALTORS® Cheryl and I will help you with the following steps and much more.
Decide What You Want
Before you start looking, make a list of what you want and assign each item a priority. Some areas to consider are the location,type of home, and age of the home.
Know What You Can Afford
- Most loans require a downpayment. The amount varies, but 20% of the purchase price is typical. If you’re a first-time buyer or fall below certain income thresholds, 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: A lender will determine how much he/she thinks you can afford based on your income, employment history, education, assets (e.g., bank account balances, other property, insurance policies, pension funds), and debt. Check your credit report before the lender does to clear up any problems.
- Your comfort level: You don’t have to spend $200,000 on a home just because the lender says you can afford a $200,000 home. Do some math and determine what you’re comfortable spending.
Make an Offer
You’ve figured out your home-search criteria and what you can afford now let us help you find the home of your dreams and make an offer. Finding the right home is an invaluable part of this process. We will help prepare the contract and associated paperwork, negotiate, juggle inspections and option periods, and more.
Unless you’re paying cash for the home, you’ll need a loan. Keep in mind the true price of financing goes beyond the interest rate alone. Consider items such as points, total lender fees, term of the loan, and penalties for early payment. The lender will likely require an appraisal to verify that the home is worth the cost of the loan as well as a physical survey. Repairs may be required. Insurance must be purchased. All these conditions and others must be satisfied before a transaction can close and we will be with you every step of the way.
Close the Deal
After weeks or even months of research and decision-making, you close the transaction, usually at the title company’s office. The title agent ask you to sign many documents and will explain each one. The lender will have given you an estimate in advance of your share of the closing costs. And at Closing you’ll present a cashier’s check or a wire transfer to the Title Agent, sign another document that itemizes closing costs In return, you will receive a deed, transferring ownership rights to you and the keys to your new home.