Congratulations!  Buying your own home is one of the smartest financial decisions you will ever make.  For most Americans, the equity that they build in their home is their greatest source of wealth. 

Whether you are a first time buyer or an experienced buyer, it is important to understand that the real estate market has changed.  Changes in the market environment, technology and the purchase contract have all had a large impact on the way homes are bought and sold today.  Being prepared both financially and emotionally for the process of finding your new home will make the home buying experience much easier and more enjoyable.

The purpose of this website is to help you become acquainted with the real estate transaction before you start searching for your home and to provide you with tips and advice that can help you save time, money, and lots of frustration. 

The mistake that many homebuyers make is that they jump into the process completely unprepared.  Most people do not take the time to educate themselves on what to expect, and as a result, they often end up frustrated and confused.  I applaud you for taking the time to familiarize yourself with the real estate transaction.  I truly believe that your next home purchase will be both joyous and exciting, just like buying a home should. 

Get Pre-approved for a Loan Before You Look for a Home

The first step you need to complete is to meet with a mortgage company to be pre-approved for your loan (unless you are paying all cash).  This first step is very important and should definitely be addressed before you look for a home.

The terms pre-qualification and pre-approval are often used interchangeably but they are actually quite different.  It is important to understand the difference between the two and I strongly recommend that you get pre-approved rather than pre-qualified. 

Pre-qualification simply means the lender has run a credit report and reviewed the loan application.  Based on these factors, the lender estimates what the buyer would qualify for without verifying all the information given by the borrower. In practice, pre-qualification does not mean much.  Many loans fall through even though the borrower has been pre-qualified.

Pre-approval is a different story.  Pre-approval means all the information has been verified and the lender has agreed to make the loan subject only to the title report and appraisal of the new property.  Pre-approval carries a lot more weight than pre-qualification and typically does not cause a purchase to fall through. 

This first step is very important for several reasons:

1.  Once you are pre-approved, you can shop for your new home in confidence, knowing that you won't have any problems getting the loan. 

2.  Many buyers who skip this step and just go out house hunting are unsure and nervous when they find a home that they like because they don't really know for sure if they will be approved for the loan. 

3.  Loan underwriters have specific rules and guidelines they must follow. Many would-be homebuyers have been dismayed and disappointed to find out 2-3 weeks after they enter a contract that the lender has turned them down. 

Please realize that one of the biggest fears a home seller has is that they will enter a contract with a buyer, prepare to move, and then find out that the buyer didn't qualify. 

I can't stress enough how important it is to get pre-approved for a loan before you start to look for a home.  When you get pre-approved first, we will obtain a letter from the loan company stating the amount that you are approved for. When shown to a seller, the letter makes the seller feel more comfortable, and will add more power for us in negotiations. Many of the best homes can have several offers on them at the same time from different buyers. Often, the buyer that can show that they are already approved for their loan will get the house.  Most lenders will provide this service for free.  Do it ahead of time, it will make the home-hunting process much easier and more enjoyable.

Can I Qualify for a Loan?

Changes in mortgage regulations have resulted in many more loan options that didn't exist a few years ago.  No longer do you have to have perfect credit, years of employment and a 20% down payment to qualify for a loan.  New loan programs are available for all sorts of buyers today including first time buyers, self-employed, even buyers with low credit ratings. 

Online applications have also made the pre-approval process much easier and less intimidating for many potential buyers.  It is important to work with a lender that is current with all the new lending options as well as advances in technology.  You can use any lender you wish, but if you need a referral for an excellent and reputable lender, please let me know and I will have one contact you.

The bottom line is this:  Getting pre-approved for your loan first means stress-free home shopping AND more leverage with the seller!

Determining Your Wants and Needs

The next step is to determine your home buying needs.  If you would like, we can set up a free consultation with no obligation to make sure buying a home makes the most sense for you at this time.  If we decide to move forward, I can then assist you every step of the way. This includes advising you about the community and specific areas, values, trends, and helping you pick the home. I also will assist with the financing, structure the contract, and handle all the negotiations.  Additionally, I coordinate all of the details with the title/escrow company, mortgage company, appraiser, inspector, other real estate agents, etc. throughout the entire process.

All of the services I provide are free to you.  Remember, I am paid by the seller if you decide to buy a home. 

Your Home Buying Criteria

The next step is to determine the features and benefits that you are looking for in a home. We will review items such as:

Price range, Condo or Single Family Home, Area, Size, 1 or 2 story, Number of bedrooms, Number of bathrooms, Family/bonus room, Age of home, Lot size, Pool/spa, Garage, Special requirements, etc.

This information then gets entered into my computer software program set up to email you all new or changed properties every week until you find your home (this information includes all available property, regardless of which company has the listing and consists of the most accurate and current information available).  You can then drive by these homes at your convenience and at your own pace to determine neighborhoods you like best and which homes you want to see inside.  I also network with other agents for advanced notice of properties that will be coming to market that may fit your home buying criteria.

When you see something you like, just let me know and I will arrange a private showing.  (If you see something that interests you and you would like me to preview it for you before you drive out, just let me know and I will make arrangements).

Many agents will take you through several houses they want you to see - many of which you won't be interested.  I respect the value of your time, and only want you to view the homes that YOU want to see.

Making an Offer and Closing Escrow

Once we find the home that best meets your needs, we will write up the purchase agreement and other necessary paperwork. My goal is to get you the home that you want for the best possible price and terms, and we will discuss strategy for accomplishing this goal.

The average time from getting the contract accepted to closing is about 30 days, although shorter or longer closings can be negotiated. Every transaction is unique, so I will monitor all of the details very closely, keeping you informed every step of the way.

Remember, I am here to represent you. If you are concerned or confused at any time, let me know immediately. There is no such thing as a stupid question when you are dealing with a large investment like this!

During the escrow, your job is to conduct any inspections you wish and to complete the funding of your loan (even if you have been pre-approved, the lender will often ask for some last minute documentation before funding the loan). Don't worry; I will assist you with the inspections and all the necessary paperwork.

I also employ a transaction coordinator who works closely in conjunction with the escrow officer to make sure all of your paperwork has been completed and that your file is complete.  After escrow closes, you will receive a complete file with copies of all of the paperwork and documentation organized for your records as a courtesy to you.

Within the first two weeks after acceptance, we will arrange to have a licensed inspector conduct an inspection of the home.  If any repairs are needed, we will then negotiate with the seller for any requested repairs. 

A day or so prior to closing we will conduct a "walk-through" inspection to make certain that all items specified to stay with the home are still there and to verify that all negotiated repairs have been completed.

After your loan is funded and the deed is recorded, I will arrange to meet with you to give you the keys and THE HOME IS YOURS!

In Closing

This should give you a general idea of what to expect and what steps you can take ahead of time to make the home buying process much more enjoyable.  As I said before, buying a home is very emotional for most buyers.  Before you end up in your new home, most people will get frustrated, confused, and maybe even disillusioned.  Many people will experience buyer's remorse and some will even consider ending their search for a new home. Remember, this is all completely normal.  It's all part of the home buying process. 

The most important step you can take is to continue to educate yourself and ask questions.  I understand this isn't something that you go through everyday, and I know you will have many questions along the way.  If you have any questions at any time, please feel free to contact me.