Be sure to check out PART 1 here!
So you are ready to buy a home. It’s a big decision and there’s a lot to
learn. But with these 10 quick steps,
choosing and purchasing your home will be easier and more seamless than ever
before. This guide provides 10 key steps, information and tools in order for
you to find, purchase and finance a home that meets your needs and preferences.
In a previous blog, I discussed the first 5 steps in helping
you choose and purchase your home. You
can read that blog here. Now,
it’s time to discuss the last 5 steps so you can finalize that home purchase
and get to the celebrating!
STEP 6: Obtain a Mortgage
Securing a mortgage is
oftentimes more complex and more expensive than a consumer may realize. That’s why it’s important to be organized and
find a competent mortgage loan officer.
Your ABR (Accredited Buyer’s
Representative) has already helped other buyers work through the mortgage
application process and can also provide valuable assistance.
How to obtain
a mortgage:
- Apply for a
loan: Your ABR can help you understand the pre-application steps,
the information your lender needs, the decisions you will have to make at
application, the application costs and the application legal requirements.
- Closing costs and The Truth In Lending Statement:
Mortgage costs include appraisal and points (a fee based on the amount
of the loan). Depending on the loan, you
may also be required to pay for mortgage insurance. To help you see everything you’re paying for
the length of the mortgage, you will receive a Truth in Lending Statement, which is a
good-faith estimate of all of the costs associated with the mortgage.
- Application and lender requirements: Includes social security number, date of
birth, photo identification card, paycheck, W-2 or 1099 tax form, employers,
accounts, current assets, liabilities, current and previous addresses, sales
contract.
- Special situations: Lenders may require additional
information if you are: self-employed, compensated on a commissioned basis,
separated or divorced, social security/pension/disability/any form of public
assistance benefits considered as income, bankruptcy/foreclosure or any judgments
against you in the past 7 years, Department of Veterans Affairs (VA) Loan Application.
- Other considerations: Be sure to
consider points and rate options and keep in mind that your financial position
must be the same at closing as it was when you were approved (don’t buy a new
car or purchase anything major!).
- Obtain homeowners insurance: Before closing, your mortgage will
require you to obtain homeowners insurance.
Costs and coverage will vary.
- Escrow accounts: Decide if you
want to pay your property taxes and homeowners insurance policy on your own or
if you would rather wrap them into your monthly mortgage payments.
STEP 7: Prepare for
Closing Day
Many important details must fall in place before you close on
your home. Your ABR will help you stay
on track. The most important details
include:
- Completing a home inspection
- Requesting an attorney review
- Finalizing your mortgage
- Getting ready to move
- Attending a final walk-through
- Preparing to pay closing costs
STEP 8: Close
The actual, legal transfer of ownership is called closing or settlement. Participants of the closing usually include:
- You, the buyer
- The seller
- The closing agent, the title insurance
representative and the escrow agent (one person may fill all these roles)
- The real estate agents
- Attorneys for the buyer and seller
During the meeting, you’ll sign many documents including:
- The closing statement
- The mortgage papers
- A Truth in Lending Statement
- Any additional documents required in your state
Be prepared to provide your payment of closing costs, proof
of insurance and approval of inspections, too!
STEP 9: Move
You found your home!
The contract has been signed! The
closing date is set! Now it’s time to
move. Be sure to plan for the moving day
well in advance with these helpful tips:
- Determine
cost of moving: Many people
are surprised by the variety of expenses associated with moving, including
packing materials, utility connections, insurance, cost of movers, truck
rental, etc. You can eliminate or reduce
these costs by investigating moving companies, estimating moving costs and
making a moving checklist.
- Moving
coverage: Before you select a
mover to help you, confirm that the company is insured and provides coverage
for your belongings. Three of the most
common forms of insurance coverage are basic liability, declared value
protection or actual cash value and replacement value.
- Packing tips:
o
Begin packing as early as possible
o
When packing, go room by room
o
Make a list of what’s in each box
o
Label all boxes by room
o
Cushion the bottom and sides of boxes
o
Pack heavy items in smaller boxes
o
Packed boxes should not exceed 30 lbs
o
Fill you washer/dryer with clothes, linens and
light items
o
Wrap and secure cords
o
Use rope or elastic to secure doors and drawers
o
Let the children help!
STEP 10: Celebrate!
Congratulations!
You’ve worked hard to achieve your dream of homeownership. I would like to wish you many years of happiness
in your home. Cheers!
Want
to learn more? You can receive your own
home buyer’s toolkit at www.toddohlde.com. Click on Contact Me to send me
an email and request your copy. All you
have to do is provide me with your home address. It’s as easy as that!
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