For Buyers: One Step at a Time

No doubt, buying a home is a huge step. But if you are aware of the smaller steps involved
and the timing of these, you will have a much more satisfying and successful purchasing experience.

  1. Get Ahead, Early On…(Keep your credit in check)
  2. Ready, Aim, Fire – not Ready, Fire, Aim… (Determine your wants and needs)
  3. Buyers can have a REALtor® Win-Win Situation…(Using a buyer’s agent)
  4. Early Bird catches the [best] worm… (Loan preapproval)
  5. Let’s shop and not drop…(How to view properties)
  6. Hey Batter, Batter! (Making an offer)
  7. Are we there yet? (After acceptance of the offer)
  8. Loosen up…your wrists…(Closing)
  9. Pop goes the…cork…(Keep in touch!)

Get Ahead, Early On… (Keep your credit in check)

Even if you are not ready to purchase a new home for several months, there is one very important thing you can do now to get ahead of the game: Keep your credit history looking good! Getting rid of unnecessary credit cards, paying your bills on time and steering clear of major credit purchases as the time draws nearer to shopping for a loan can make all the difference in the world! The higher your credit score, the more power you will have in choosing the loan with the most favorable terms.

      Ready, Aim, Fire–not Ready, Fire, Aim…(Determine your wants and needs)

Do you know what type of home you would like to have? – size and style, special features, location, amenities, absolute price maximum?  Giving serious thought to the relative importance of each of these factors will save time and energy. That's one reason I have tried to include a lot of information in my 'Communities' section. Although you may have additional questions, here you can get a good idea of where you may want to begin your search or at least an idea of what amenities are important to you. After all, a home is more than the house in which you live; it is also the community and how it fits your lifestyle.

Buyers can have a REALtor® Win-Win Situation…(Using a buyer’s agent)

Using a Buyer's Agent is really a win-win situation for the Homebuyer. A good Realtor®knows the market, as well as the "ins and outs" of the entire home-buying experience, from offer to closing. Generally speaking, the HomeBuyer is not charged a fee when working with a Realtor®; nor does the home being purchased cost more than it would if the HomeBuyer were working alone. In fact, due to the Realtor®'s knowledge of the market (comparable properties and other factors) and the negotiation process (how to structure a strong offer and what to watch out for in the contract), the HomeBuyer stands to save money by working with a Realtor®as a Buyer's Agent.

The Buyer's Agent's fee is paid by the Seller (whether the home be a resale property or new construction). Whoever "lists" the property for sale (the Realtor®as "Listing Agent") agrees with the Seller upon a fee, and this fee is split with the Buyer's Agent. If the Listing Agent is lucky enough to find a buyer for the property him/herself, then he/she keeps the whole commission. If the property is entered into the MLS (Multiple Listing Service) and another agent is involved in finding the Buyer (which is most often the case for properties listed in the MLS because of the amount of exposure the property receives), then the fee is split between the two agents.

The only time when working with a Buyer's Agent may not work well, is when the Buyer is interested in a property for sale "By Owner," in which case the owner of the property may not be agreeable to pay a fee to anyone. Sometimes, an arrangement can be made between the Seller and the Buyer's Agent and sometimes no arrangement is possible... it depends upon the market and the circumstances. But Realtors® know that these things do happen, so talk to your Buyer's Agent should this scenario arise.
 

Early Bird catches the [best] worm… (Loan preapproval)

The Southwest Florida real estate market is HOT! You may very well be in competition with other buyers when you find the home you wish to purchase. For this reason, your offer needs to be strong and one way of accomplishing this is by thinking about how you will finance the purchase ahead of time; how much you will be able to put down and how you much you will/can borrow. Obtain a pre-qualification letter from a lender or mortgage broker and ask some initial questions about their programs and rates (this step shouldn't cost you a thing). Then you can shop around for the loan that is right for you and in this way, you will be ready when you find the property you want to purchase.

Purchase/Sale contracts allow the buyer a limited amount of time to apply for and obtain financing. Final loan approval from the bank/lender entails a great deal of paperwork and research, including a property appraisal. These things take time, so the sooner you decide upon a lender/mortgage broker and a loan program, the more time the lender/mortgage broker has to process your application and obtain final loan approval for you. You can ask your Realtor®for names of lenders/mortgage brokers that he/she feels are trustworthy and efficient. Working with a lender or mortgage broker in the area where you are looking to purchase a home can often facilitate and expedite the loan process.

Let’s shop and not drop…(How to view properties)

When you choose to work with me as your buyer's agent, and we pinpoint some properties you would like to visit, I will carefully schedule showings through the listing agents' office.  I will plan our time together in a way that will help you make sense of and keep track of what we see. I will provide you with a binder containing a copy of the listing information on each property, a mapping of the properties and a checklist. In addition, I will have a digital camera on hand. This way, at the end of the day, it will be easier for you to recall what you liked and/or disliked about each property.

Hey Batter, Batter! (Making an offer)

When we locate a property for which you would like to submit an offer, that is when all the real work begins. All the homework you've done up until now – keeping your finances in order, shopping for a loan and obtaining pre-approval – is going to pay off. With that much less to worry about, you will have more confidence and energy to focus on the rest of the contract. For, in addition to the price of the home, several other contractual terms can significantly affect the outcome of your deal. I will walk you through these so that together we can step up to the plate feeling very positive and prepared.

 Are we there yet? (After acceptance of the offer)

Acceptance of the offer or counteroffer is so sweet (Don't forget to see my list of favorite restaurants for great Margaritas and guacamole!) but – '¡Cuidado!" 'Careful!" we're far from finished. During the next few weeks, I will guide you through final loan approval, home inspection, insurance questions, preparing to have your new accounts set up with service providers (phone, electricity, water, cable…), doing a final walk-through of the property and answering questions you may have regarding your move and your new location.

I will also be keeping in close touch with the lender/mortgage broker, listing agent and the title/closing company to ensure that we remain on schedule and that we all arrive at the closing table without any negative surprises. Finally, in addition to providing you with an estimate of your closing costs early on in the transaction, I will obtain a copy of the final closing documents as soon as possible prior to closing so that you have a chance to look them over and ask questions.

Typically, obtaining a copy of all closing documents at least one day prior to closing is like pulling teeth, especially in our highly active market. But by law, this is the way it should work and I feel very strongly about providing that service for my clients. (Also, please realize that this is another reason why it is important to work with a reputable and efficient lender/mortgage broker. You as the borrower should let them know that if you are going to give them your business, then you expect a full copy of documents at least one day prior to closing. This will make it easier for your Realtor® to follow up.)

 Loosen up…your wrists…(Closing)

Unless you have paid cash for your new property, you will have a large stack of papers to sign and initial at closing. Most of these will have to do with the loan and typically, the closing agent of the title company breezes through them very quickly, providing only minimal explanations. That is why your Realtor® should obtain a copy of all documents prior to closing. You'll feel much more comfortable signing if you have had a chance to look them over. Any questions you have can be answered by your Realtor®, your lender and/or the Title Company closing agent so that you arrive at closing feeling comfortable.

 Pop goes the…cork…(Keep in touch!)

Hopefully, everything has gone smoothly at closing and you now have keys in hand for your new property. Your accounts should be established for water, electricity, phone, cable, etc. so that you may move in as soon as you would like. If you have any concerns or questions, please do not hesitate to call. In fact, I do hope that we will keep in touch after the closing and that you will recommend me to your friends, relatives and neighbors. Congratulations, Best Wishes and ..Cheers!