Buy
Buying a Home
Buying a home is always an exciting time. Below are 3 easy steps to get the process started.
STEP
Most people believe that the first step in buying a home is to find a real estate agent. The truth however is that the first step is to get pre-approved for a mortgage (unless you’re an all cash buyer then you can skip this step). In this step we review your credit, income and assets.
STEP
Once you have your pre-approval letter, now you are ready to make a list of key essentials you want in your new home. This list should include everything that is a must-have, e.g., number of bedrooms, location, and style of home.
STEP
Now you are ready to start previewing properties. Depending on your budget and needs, we will work closely with you to obtain your goals.
Dual Capacity
Contrary to popular belief, licensed real estate agents and mortgage brokers can work in a dual-capacity role on purchase transactions. In fact, a dually licensed real estate professional can help create a more seamless experience for the homebuyer. Providing a single point of contact for the prospective buyer creates a confident client. The hybrid real estate agent-mortgage broker has thorough knowledge of the specific property at hand. They know the realistic value and potential points of risk, and they have an unobstructed view of the buyers financial capabilities. This hybrid real estate professional can better advise their clients and make sure they are not overextending themselves.
1st Time Homebuyers
5 Steps to Buying Your First Home
Buying your first home is a great way to invest in your future. Owning a home can greatly improve your net worth and overall financial stability.
Below is a detailed 5-step process of what to expect.
Simply put, getting pre-approved is the most important first step in achieving homeownership. You want to work with us so we can review your financial situation and determine what amount you are pre-approved for. And if you’re not approved yet or not approved for the amount you were hoping for, we can tell you what steps you need to take to eventually get to where you want to be. We review your credit, income, and assets.
This step is an exciting step because at this point you’re pre-approved, you know how much you can afford, and now you’re ready to look at houses. When people are choosing a first home to buy many times they want to stay in an area they are familiar with or that is close to work. Whatever your main priorities are, make sure you let us know. Once we find a house that you would like to place an offer on, we then strategize on how to write up the offer. Every house and every buyer is different so that’s where we let our experience and knowledge guide you through the submitting offers process.
Now that we have an offer accepted and are officially under contract, the very next step is to order an inspection on the home. An inspection contingency in an offer basically means that the offer is contingent on a satisfactory inspection report. Many times buyers will perform an inspection on the house and request the sellers to complete a few quick repairs before the transaction closes. Most transactions close in 30 days. General rule of thumb, the newer the home the less likely it will require repairs (but that’s not always the case). The average cost of an inspection is around $500. Then comes the appraisal which typically costs around $700-800. The lender wants to make sure the house appraises for the agreed price between you and the seller. If an appraisal comes lower than the agreed price then you will be required to make up the difference out of pocket.
In our first step to homeownership you provided general documents to get you pre-approved. During this step the lender will issue out what is called a “conditional approval”, meaning you are approved under a few conditions. At this point the lender is digging deeper to make sure everything checks out. It is very important to provide all the requested documents in step number one so that when you get to the conditional approval stage you don’t run into any surprises.
Arguably the best words in a real estate transaction is “clear to close”. Once your loan is cleared to close the lender will work on preparing the final documents for you to sign. Once you sign the closing documents and the transaction has been officially recorded with the county, you are then allowed to receive the keys to your new home. Make sure you set up utilities right away within the first week of moving in.
FAQs
This is the legal contract a buyer and seller enter into once the buyer’s offer has been accepted by the seller. It outlines the terms and conditions of the sale and is signed by both parties.
This is when a buyer agrees to pay a percentage of the home’s asking price into an escrow account to show the seller they are serious about buying the home. In return, the seller agrees to take the home off the market. When the sale closes this money is used towards the down payment and closing costs.
A home inspection is when a home inspector is hired to examine the home’s health, safety, and major mechanical systems. If any issues arise from an inspection, the buyer may be able to renegotiate their offer.
Escrow is a third-party process in which documents and funds are deposited by buyers, sellers, and lenders to facilitate the closing of a real estate transaction.
Closing costs are processing fees you pay to your lender. Lenders charge these fees in exchange for creating your loan. These fees include but are not limited to; underwriting fee, appraisal fee, credit report fee, title & escrow fee, recording fee, and homeowners insurance and property tax impounds.
IPM, LLC dba
IPM Real Estate
License #: 23008673
IPM Mortgage
NMLS #: 2488721
