FOR BUYERS

Why Do You Want To Buy?

Are you tired of paying rent? Have you decided to invest in your own future and pay towards your own mortgage instead of your landlord's? Have you outgrown your current home and need more space? Are you looking to diversify your investment portfolio? Or perhaps you're interested in purchasing a rental property? Do you dream of having a larger yard or living in a different area? Would you like to shorten your daily commute? Clearly identifying your motives for buying a property will help you make the right decision and choose a property that meets your needs.

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Has Your Income Grown?

Investing in property is a wise move, whether you are in search of your dream home, a rental property, or looking to expand your investment portfolio. Owning real estate is one of the least risky ways to build equity or obtain a greater return on your initial investment. It is a sound investment that provides stability and a tangible asset that can be appreciated over time.

It is important to prepare before shopping for a property:

 

Build Your Green File.

A green file contains all your important financial documents. You will need it to secure financing for your property. The typical green file should contain:

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• Financial statements

• Bank accounts

• Investments

• Credit cards

• Auto loans

• Recent pay stubs

• Tax returns for two years

• Copies of leases for investment properties

• 401K statements, life insurance, stocks, bonds, and mutual account information.

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Check Your Credit Rating.

In order to determine what type of property you can buy and at what price, your credit score plays a significant role. It is recommended to check your credit rating with a reliable lending institution first so that we can determine what you can afford. The lender will examine your credit ratings from three credit reporting agencies namely Equifax, Experian, and Trans Union. We would be more than happy to recommend skilled and knowledgeable lenders in the fields of residential, construction, commercial, and investment real estate.

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Be Careful With Your Finances.

It's not advisable to make sudden career changes or purchase properties without financial stability.

Purchasing a property involves a lot of financial decisions, paperwork, and complicated issues to understand. It would be helpful to have an expert by your side during such a significant purchase. We can assist you in navigating this process and offer you early access to property listings before they become available in the general market.

Here are some factors to consider when choosing your real estate professional:

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• Look for a full-time agent – one who has experience completing transactions similar to yours.

• Interview a few agents: Are they familiar with the area in which you are interested?

• Ask how much time the agent will have for you, and if they are available at night and on weekends.

• Ask about their credentials and education: A good agent will continually strive to improve and gain knowledge of the latest real estate trends and hold the highest designation in their respective fields of expertise.

• Does the agent return your calls promptly? Time is money when attempting to buy a property.

• Ask for a list of properties they have sold or a list of references.

• Choose an agent who listens attentively to your needs and concerns. Pick an agent, with whom you feel comfortable.

After completing the necessary preparations, it's time to search for the ideal property.

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Take a Drive.

It's important to familiarize yourself with the neighborhoods, complexes, or subdivisions that you are interested in. Take a drive around the area to get a sense of what it would be like to own a property there. This will help you start to understand the available properties in those areas.

 

Narrow Your Search.

Select a few properties that interest you and have your agent schedule visits. Inquire about potential resale value.

 

Time to Buy.

After you have decided on the property you want to buy, your real estate agent will assist you in drafting an offer that the seller will most likely accept. A competent agent will go through the potential costs and expenses related to the new property and help you create an effective offer that gives you an edge over other potential buyers.

The Initial Agreement and Deposit.

An effective agreement is a legal arrangement between a potential purchaser and the property’s seller.

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Some important tips to keep in mind to streamline the process:

• Keep written records of everything. For the sake of clarity, it will be extremely useful to transcribe all verbal agreements including counter-offers and addendums and to convert them into written agreements to be signed by both parties. We will assist you in drafting all the paperwork for your purchase and make sure that you have copies of everything.

• Stick to the schedule. Now that you have chosen your offer, you and the seller will be given a timeline to mark every stage in the process of closing the real estate contract. Meeting the requirements on time ensures a smoother flow of negotiations so that each party involved is not in breach of their agreements. During the process, we will keep you constantly updated, so you will always be prepared for the next step.

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The Closing Agent.

During the closing process, either a title company or an attorney will be chosen as the closing agent. This agent will hold the deposit in escrow and conduct a thorough investigation of the property's recorded history to ensure that the title is free of any encumbrances by the closing date. Any new encumbrances will also be properly added to the title. Some properties may have restrictions that limit certain activities, such as building or parking. There may also be recorded easements and encroachments that restrict the use of your property.

 

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How to Hold Title.

You may want to consult an attorney or tax advisor regarding the best method of holding title. Different methods have different legal, estate, and tax implications, particularly when selling or upon the death of the titleholder.

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Inspections.

After your offer is accepted by the seller, it is important to have a licensed property inspector inspect the property within the designated time frame that was agreed upon in the effective contract to purchase. If you desire, you can choose to have different inspectors inspect the property to obtain professional opinions from inspectors who specialize in specific areas such as the roof, HVAC, or structure. In case you are purchasing a commercial property, an environmental audit needs to be done on the site for the lending institution. We can recommend several different inspectors to assist you with the inspection process.

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Depending on the outcome of these inspections, one of two things may happen:

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1. Either each milestone is successfully closed and the contingencies will be removed, bringing you one step closer to the close, or

2. The buyer, after reviewing the property and the papers, requests a renegotiation of the terms of the contract (usually the price).

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Appraisal and Lending.

It is crucial that you maintain close communication with your lender throughout the loan application process. Your lender will inform you of any additional documents required to approve your loan application and fund your loan. If the agreement is conditional upon financing, a licensed appraiser will appraise the property to determine its value for the lending institution, through a third party. The appraisal is conducted to ensure that the lending institution's investment in your property is accurate. Appraisers are experts in determining property values based on several factors such as square footage measurements, building costs, recent sales of comparable properties, operating income, etc. To avoid any last-minute issues, it is recommended that you confirm with your lender within two weeks of closing to ensure a smooth and timely loan approval process.

 

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Association Approval.

When purchasing a property that is conditional upon an association's approval, it is important to request the rules, regulations, and other important documents from the seller as soon as you have an effective agreement to purchase. You should also submit the application documents and processing fees to the appropriate person at the association by the required time. Make sure to fill out all the information completely and legibly to avoid delays in processing the application. If you need to meet with the association for approval, make an appointment for the interview as soon as possible. It's essential to obtain a certificate of approval before moving in, as most associations require it. Your closing agent will request the original copy of this approval letter to be brought to the closing so that it can be recorded with the deed in the county public records.

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Property Insurance.

When you are taking out a loan, your lender will require you to buy a specific amount of insurance on the property. The amount of insurance needed will depend on the lending institution and the property's purchase price. To save money on homeowners insurance, it's advisable to shop around for different insurance policies. Additionally, you can also follow these tips to save money.

 

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• Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium.

• Ask your insurance agent about discounts. You may be able to get a lower premium if your home has safety features such as deadbolt locks, smoke detectors, an alarm system, storm shutters, or fire-retardant roofing materials. Persons over 55 years of age or long-term customers may also be offered discounts.

• Insure your house NOT the land under it. After a disaster, the land is still there. If you do not subtract the value of the land when deciding how much homeowner’s insurance to buy, you will pay more than you should.

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We will be happy to recommend experienced knowledgeable insurance agents for every property type.

Closing Day

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If you have come this far, it means congratulations are almost due, but not quite yet. Don't forget to tie up any loose ends:

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Final Walk-Through Inspection.

More of a formality than anything else, the final inspection takes place a day before, or the day of the closing. You will visit the property to verify that all is in working order, everything is the same as when you last viewed the property, that there are no extra items left behind, and that everything included in your purchase is still at the property.

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Home Services and Utilities.

We will provide a list of useful numbers for the activation of home services and utilities after the closing occurs.

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Be Prepared.

If an unforeseen glitch arises, we are ready to assist you, even at the last stage. Whether something breaks down at the property or some other minor detail comes up, there is no need to worry. We have encountered such issues before and know how to handle them efficiently and in a stress-free manner. So, you can count on us to resolve any problem that may come up.

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Closing.

During the closing process, the closing agent will provide a settlement statement to all parties involved. This statement will summarize and detail all the financial transactions that have taken place. You, as well as the seller(s), will need to sign this statement along with the closing agent, certifying its accuracy. If you are obtaining financing, you will need to sign all the necessary documents required by the lending institution. In case you are unable to attend the scheduled closing, alternative arrangements can be made depending on the circumstances and the notice that is received. If you are bringing funds to the transaction, you can choose to either wire the funds electronically into the closing agent's escrow account or bring a certified bank check to the closing for the amount specified on the settlement statement. The seller should provide all property keys and any other important information to you during the closing so that you can receive them at that time.