Where do I start if I want to buy a home?

You’ve come to the right place. First, start by deciding what you're looking for in a home. What are your location needs? Want to be close to your job or live in a certain neighborhood? How large a home do you need? What style of home design do you like? Then consider how much you can afford to spend, in terms of total cost and monthly payment. Once you have answers to these questions, see what’s available in the areas you like. Become familiar with the price ranges. You’ll find it helpful to consult with a knowledgeable real estate professional, like a Trails West Eagle Bend realtor, to sort out any issues and assist in your search.

How do I find a good real estate agent to work with?

You want someone you can communicate well with and who understands your needs and interests. It should be someone you feel comfortable with and whom you can trust. Also, it should be a person who knows the area well in which you are looking, including current market value. A “buyer’s agent” represents the buyer in a transaction, while a “seller’s agent” represents the seller. Before working with someone, you should receive a disclosure statement explaining what a buyer's agent does and what a seller’s agent does.

What should I take with me when I tour a home?

To be efficient in your search, you’ll want to learn as much as you can when you first visit a home. It’s easy to forget things about a home once you begin seeing a lot of them. So bring along a notebook to jot down comments and questions. Take a flashlight to see into dark spaces and a tape measure to check room sizes. It’s a good idea to bring a camera to take pictures to refer to later. Be ready to ask questions while you’re there. Don’t be shy, you have a right to know anything you want about the home before making an offer.

How many homes should I see before buying one?

It depends. Some people are in a hurry and know exactly what they want. They don’t need to see many – sometimes only one. Others want to take their time and see a lot of homes before they feel comfortable in making a choice. It’s up to you. Once you start looking, you’ll get a sense for the homes in your market area and it will be easier to narrow your choices down to a winner. When the time is right to make an offer on a home you like, you’ll know it.

How do I make an offer when I’ve found a home I want?

Making an offer can be nerve wracking, yes, but also exciting. Once you have found a home you want to buy, tell your real estate representative you want to make an offer. An offer is a written document that states how much you are willing to pay for the home. Sometimes it includes certain conditions that must be met. It is a legally binding contract, so may wish to have a lawyer review it.

You should give a time limit for the seller to accept, reject, or make a counter offer. If a counter offer is made, you will be able to accept it or make a counter offer of your own. The negotiation often continues through various offers until one is accepted, or one side decides to end negotiations.

How do I decide how much to offer?

After you've thoroughly evaluated the home, had all your questions answered, checked comparables in the area, and discussed it with your real estate representative, you’ll have a good idea of the home's value. You, of course, want the best value (who doesn’t?) and the seller wants the best price (who wouldn’t?). Consider the seller’s situation. Are they in a hurry to sell? Think about what you can afford. Then, make an initial offer that you consider to be fair. Most buyers and sellers negotiate on price, each compromising a little until both agree.

How much of a down payment do I need?

It can vary, depending on the type of loan you get. With a conventional loan, a down payment of 20% is usually required. But other loans can required as low as 5% down. Typically, the amount you put down depends on the loan-to-value ratio. For instance, if a property is appraised at $200,000 and the loan-to-value ratio is 90 percent, the lender would be willing to loan $180,000. The buyer would then need to put down the $20,000 remaining. Your Trails West Eagle Bend realtor can help you determine how much is needed for a down payment.

What does the lender do and how do I know which one is best for me?

There are many different sources for home loans available. A lender (or mortgage company) does more than lend you money for your home. They also must maintain payment records, pay your real estate taxes and insurance (if those costs are part of your monthly mortgage payment) and send you yearly statements of interest paid that you can deduct from your taxes. It’s a good idea to talk with several lenders, to see what programs and interest rates they have to offer. We work with many different reputable lenders and can direct you to one that will meet your needs.

What information do I need to provide in order to get a loan?

Lenders will want information on your employment, income, expenses, credit obligations and other outstanding loans. You should be prepared to show them recent pay stubs from your job, W2 tax forms for the past 2 years, bank statements showing your current balances, plus information on credit cards, child support and other monthly payments you have.

What do closing costs include?

There are many different costs that occur when you close on a home loan. Usually, closing costs include the following:

• Appraisal fee – the cost to appraise the value of your property
• Escrow or attorney fee
• Credit report fee
• Title insurance
• Mortgage insurance
• Origination fee
• Recording fees
• FHA mortgage insurance (FHA loans only)
• VA guarantee fees (VA loans only)
• Points
• Document preparation fee
• Fire and hazard insurance premium for the first year of your loan
• Money to cover real estate taxes for the current tax period to date
• Interest – paid from closing date until 30 days before your first monthly payment

What does a home inspector do and will I need one?

It’s a good idea to have a professional home inspector go through a home you have made an offer on – for your own safety and peace of mind. A home inspector will check the plumbing, heating, cooling, and electrical systems, and look for leaks, toxic mold and structural problems. Your inspector will not tell you what the home is worth, only what repairs are recommended or necessary. Once you present the findings of the home inspection to the seller, they may renegotiate the price or agree to pay for any repairs needed before the sale is complete. We would be happy to help you find a qualified home inspector.

How do I know what the taxes on my property will be?

Usually, the property tax for a home is listed on the information flyer that is provided by the seller. The tax amount is for the previous year (property taxes change every year). You can expect that your property tax will be slightly higher, assuming the value of your home goes up over the next year. If you have questions about taxes or other costs related to home ownership, ask us. We would be glad to answer any questions.

When should I line up home insurance?

It’s a good idea to arrange for homeowner’s insurance early in the buying process. You may want to talk with several insurance companies, starting with the one that carries your auto insurance (you can often get a better premium by combining home and auto coverage with one company). Usually, your mortgage lender will want to see proof that you have a homeowner’s policy in place at the time of closing.