8 Steps to Buying a Home

Here are 8 steps to buying a home. First a summary, then more detail below. Feel free to contact me at the start. I am happy to talk with you one on one about this process and help guide you every step of the way. :) Jennifer Suemnicht

1. Check credit score and figure out how much you can afford (Feel free to contact me now via phone, text, or email during this phase for personal assistance.)

2. Research phase

3. Get pre-approved for your mortgage loan with a lender

4. Find the right real estate agent

5. Start looking at homes

6. Find the right home and make an offer

7. Home inspection and other steps in the closing period

8. Sign the papers / closing / get the keys & move in

These are 8 key steps for buying a home… below I have gone into each section with more detail.

1. Check credit score and figure out how much you can afford.

Assuming you have saved up for the down payment and closing costs https://www.realtor.com/advice/buy/reduce-closing-costs/. There are several resources available for calculating mortgage payments such as https://www.realtor.com/mortgage/tools/mortgage-calculator/. Check your credit score and consider any improvements. Having a better credit score will help you qualify for a better interest rate and lower payments. I have some tips to share – so just ask me. Some sites for checking credit score are www.annualcreditreport.com or www.creditkarma.com online or app. A score of 720 is needed for better mortgage interest rates. FHA loans require only 3% down payment and can usually secure a loan with a credit score of 580 or over.

2. Research phase - read about it, attend classes or webinars, surf the web, download an app on your phone, determine neighborhoods of interest in your price range, look at listings online.

There are so many resources. Here are a few.

• Read the information & blog articles on the Jen’s Realty website.

• Download the Jen’s Realty RE/MAX App. When looking at properties you can even contact Jen direct with questions or schedule a home showing.

• Take a class one-on-one with Jen or if you qualify for and would like to consider down payment assistance programs find classes & info at Washington State Housing Finance Commission www.wshfc.org.

3. Get pre-approved for your mortgage loan with a lender.

This requires submitting documentation, such as W2, paycheck stubs, bank account statements, etc… There are varying degrees of pre-approval (such as a pre-qualification). But the best way to really know where you stand is to ask your lender for a full pre-approval. You will need to provide this information anyway and it’s best to know upfront where you stand, rather than later. Plus if you can provide a strong pre-approval letter, that will give you an advantage over other buyers if there is more than one offer. Your lender will also pull your “credit” so it’s important to do research to choose a lender who you can trust to do a good job. Every lender should explain different options or loan programs to you, along with the closing cost estimates for each.

4. Find the right real estate agent

Your real estate agent will be your guide through the process, so it’s important to choose someone you like and trust. Here is a bit more about me https://www.jensrealty.com/aboutjen. I appreciate your consideration and look forward to talking with you so we can get to know each other. I am a broker, as well as a Realtor which means I am experienced and help to a higher standard of ethics. You should have the best representation. Your Realtor/Broker should have experience and knowledge about the home buying process, familiarity with different neighborhoods, clear communications, and negotiation skills. All this will save you money and is crucial to your success. Best of all there is no cost for using a Realtor / Broker as your Buyer’s Agent. The commissions are almost always paid by the seller. Pro Tip: Read reviews and talk to/meet your prospective broker to see if they are a good fit.

5. Start looking at homes

Your Buyer’s Agent / Broker/ Realtor can set up a search to automatically notify you of new listings that fit your criteria in your own MLS Search Portal. In the Portal you can look at homes online, mark favorites or discard homes you don’t like, make notes, and ask your Realtor questions. Additionally you can search yourself within the Portal or using other tools like the Jen’s Realty RE/MAX website or mobile phone app. If you already have a website or app that you like to use - it’s ok to use whatever app or website you like! Having your own Buyer’s Agent means not having to rely upon Open Houses. Your own Buyer’s Agent is your personal representative with the keys to every listing for sale. Many times the agent at an open house represents the Seller. You will want someone with you who represents your interests. Here is a link to the Law of Agency Pamphlet further explaining the duties of the Buyer, Listing & Dual Agents. Pro Tip - Save yourself time by looking at the homes online first. Click on the map to see where the home is located zoom in and out. Use the different mapping features such as satellite view, street view, and points of interest. Also, when out touring homes, use your Maps App or Google Maps to see what’s around - i.e. grocery, coffee, gas. If you like a home - consider commute times and start your Neighborhood Review now.

6. Find the right home and make an offer

Many times when you find the right home it can feel like “love at first sight”. I enjoy being with my clients when they get really excited about a home and start to envision their life in the home. Sometimes it can be a process of narrowing down the homes you don’t like and revisiting the homes at the top of your list. No matter what your process is, I am your patient and helpful guide. Sometimes there may be a few homes being seriously considered. To help you make an informed choice, I will provide reports and information such as the Realist Report - which includes neighborhood pricing trends, market activity, and neighboring home information. Other reports include a Map and CMA Report for the area, another for like properties, and attachments to the listings - such as the Form 17 Sellers Disclosure, Legal Description, Preliminary Title, and more. I am always available to discuss and explain the reports. Additionally, we will go through the entire offer to make sure you understand all of the forms included in the Purchase and Sale Agreement. Again, this is such an important step. The offer is a legal contract to purchase the home of your dreams and one of your biggest investments. It is crucial that you work with an experienced Broker / Realtor with a proven success record.

7. Home inspection and other steps during the closing period

It is important to include an Inspection Contingency and conduct a home inspection. The Home Inspector will tell you about the condition of the home and help you avoid buying a home that needs major repairs. Your Realtor / Broker will talk with you about your options to potentially negotiate with the Seller to have the repairs made before closing or adjust the price or include an allowance of cash for repairs you may want to complete after closing. You may also want to have the sewer line inspected or call in other specialists to provide reports / additional inspections, get estimates for repairs or upgrades, and make sure this is the right home for you. This is a very short time for crucial due diligence. It is important to dedicate your time to make sure you are informed about the home you are buying. Your Realtor / Broker will be by your side helping to provide and discuss this information and all the steps that take place during the closing period. If you are considering terminating the Purchase and Sale Agreement, this is the easiest/best time to check the box to terminate the contract and get your Earnest Money back.

8. Sign the papers / closing / get the keys & move in

Your Realtor / Broker will keep you on track with all the deadlines and steps throughout the closing period. Three days (or more) before closing your lender (if there is a loan) will provide the closing disclosure (CD) for a 3 day required waiting period. During this time the loan documents are provided to the Escrow company who will complete the Settlement Statement. You can request copies of this as soon as it becomes available to review these documents and flag any questions you would like to ask before or during the signing. Your mortgage lender or Escrow professional are the best suited to answer these questions. The signing will be scheduled - usually a day or more before closing, although sometimes it can happen same day as closing. The CD will help determine how much money to “bring to the closing table”. Talk with the Escrow company about how best to provide this - i.e. wire funds, cashier’s check, etc… Pro Tip - Be careful for wire fraud. These thieves are tricky - never wire funds without talking with the Escrow company on the phone to verify it is really them. After all the documents are signed by the Buyer, they are sent back lender’s underwriter for “funding”. Once the funds are received and Seller has also signed, the documents are “released to record” with county records. Once the recording numbers are received, the purchase is officially closed and keys can be disbursed! This often times happens mid-late in the day. Your Realtor / Broker will arrange a time to meet you with the keys and you can at that time do any projects to the home and/or move in.

This is a brief summary of a very complex home buying process. It is important to work with an experienced Broker / Realtor who cares about your success and takes the time to explain everything to you. Many firms or agents may not know what they need to know or are too lazy or incompetent to explain all the info every home buyer should know. Whether you plan to buy now or in the future… I am happy to start talking with you, educating you one on one, and answering all your questions while you prepare to make the most important purchase of your life! Contact me today via phone, text, or email. Thank you, Jennifer Suemnicht