Buying a new home can be daunting but just like any important task,
planning and preparation are imperative. Start by being pro-active
about saving money in a savings account ahead of time for the
earnest money deposit, down payment and closing costs.
Contact a bank or mortgage lender to discuss your loan
options and have them determine how much you
qualify for. Obtain a prequalification letter from your
lender, which is usually good for a specified period of time and
for a specific amount. Having a prequalification letter available
to submit with your offer, will make your offer more appealing
to a seller. Don’t despair if the lender rejects your initial loan
application. Oftentimes there are credit issues that simply must
be addressed prior to obtaining a mortgage loan. Once you’ve
received a “green light” from your lender, and have the prequalification
letter in hand, contact your favorite local real estate agent (me, please!)
to discuss homes that are currently available in your price range. Narrow
your search to three or four homes that meet all of your criteria (too
many can be overwhelming) and ask your agent to schedule the
showings. Take mental notes and/or physical notes, photos,
and videos if necessary. Once you’ve toured the homes and found
your favorite, ask your agent to inquire about specific questions
you have about the property. Sometimes an agent can obtain a
Seller’s Disclosure Notice form or other documentation that might be
beneficial during the decision making process. Discuss
your potential offer with your agent and then have them prepare
a written, detailed offer. Review the written offer with your
agent, and/or your attorney, prior to signing it. Ask your agent to
submit your signed offer, along with the aforementioned
prequalification letter, to the seller’s agent. If the seller accepts
your initial offer, congratulations! If not, then perhaps the seller will
respond with a counteroffer that you and your agent can discuss
and determine the best course of action. Having an exceptional
agent who knows your local market and keeps your best interest
in mind is crucial these days. Your agent is required by the Texas
Real Estate Commission to present to you (at the first substantive
discussion about real estate) and explain, the Information
About Brokerage Services form. It will explain which party an
agent represents in a specific transaction scenario. You will be
asked to initial and date the form which is kept on file at
your agent’s office. Once you and the seller are in complete
agreement regarding every detail contained in the offer,
and all parties to the transaction have initialed and signed it, then
the final date of execution is inserted and it becomes
a fully executed contract. Every course of action contained in
the contract is based on the executed date. Written real estate contracts
and addenda are legally binding so please be sure that you
understand what is expected of you prior to signing.
The title company, your lender, and your agent will work in
unison with you, and often other outside parties, to prepare
and coordinate the documents and tasks necessary to reach
the closing table. You will be responsible for gathering and
submitting any and all documentation that your lender and/or
the title company requires. If you’ve requested and paid for
an option period, which is typically 7-10 days after the
executed date and during which time you may have inspections
completed, then you will be involved in communications
with your inspector and your agent to determine whether
any repair requests will be made. Once past the option
period, the majority of the title work will begin and the
appraisal will be ordered by your lender. Sometimes a new
survey is ordered prior to the closing date. While you are in
contract your lender will advise you not to open any new
credit accounts in your name, charge on any existing credit
cards, purchase anything expensive (including furniture and
appliances), co-sign for anyone, or change jobs or positions
within your company until after closing and funding occurs.
The closing process usually takes anywhere from 30 to 60
days depending upon several factors, and can sometimes
be extended when necessary. Once you and your agent
arrive at the closing table, all of your patience and efforts
will pay off and you will promptly hold the keys to your
brand new home. Congratulations! Let the BBQ’s, family
gatherings, fun times and wonderful memories begin!
Written by Arrenia Drennan-Pillans with Drennan Realty
on March 14th, 2019.