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Alyssa Boeckermann
Mobile Phone:
(952) 334-0589
aboeckermann@bhhsnorthproperties.com
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Alyssa Boeckermann
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Mobile Phone:
(952) 334-0589
aboeckermann@
bhhsnorthproperties.co
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Buying a home is one of the biggest and most important decisions you will make. Take the time to prepare yourself, understand the process, and ask questions in order to make this process a positive experience. No one wants a negative experience when making such a large financial investment!

 Beginning Your Home Search

You should start your search by determining how much home you can really afford. A good rule of thumb is to keep your mortgage along with your taxes and insurance between 25-35% of your income, however, everyone’s financial situation is different and I would be happy to put you in touch with a lender who can further evaluate your unique buying capacity.

Getting Pre-qualified and Pre-approved for a Mortgage

Before you start looking for a home, you will need to know how much you can actually spend. The best way to do that is to get pre-qualified for a mortgage. Keep in mind that pre-qualification is different from pre-approval. Pre-qualification is an estimate of what you may be able to afford. Pre-approval occurs when the lender has reviewed your financial documents (W-2 statements, paycheck stubs, bank account statements, etc.) and believes that you can finance a home up to a specific amount. Being pre-approved by a lender can put you in a much stronger negotiation position, because it shows the seller that you are committed and financially capable of buying the property.  However, neither pre-qualification or pre-approval implies a commitment on the part of a lender to actually fund the loan.

 Some documents you’ll need to get started

  • Income – current pay stubs, W-2’s or 1099’s, tax returns (usually for 2 years)
  • Assets – bank statements, investments/brokerage firm statements, net worth of businesses owned
  • Debts – credit card statements, loan statements, alimony/child support payments

Understanding the Asking Price of a Home

There are many aspects that influence the price a seller expects to get for their home. Only you can decide how much you feel comfortable offering for a property, however there are factors to consider that may influence the price you will consider paying.

These include:

  • How long the home has been on the market
  • If the price has been reduced
  • The prices for other comparable homes in the area
  • If there are multiple offers
  • Why the seller is selling

Once you’ve made an offer

Once you’ve made an offer that’s been accepted by the sellers, the financing process generally takes 30-45 days but can be more or less depending on your unique situation.

  The Financing Process:

  •             The completed application is submitted to the lender along with any required supporting documentation
  •             The lender orders an appraisal for the property, a credit report, and begins verifying assets and employment
  •             The lender provides a Loan Estimate
  •             After documentation is reviewed, loan is approved
  •             Closing loan documents are signed and the loan is funded

Home Inspections

Typically, purchase offers are contingent on a home inspection of the property to check for signs of structural damage or things that my need fixing. I will gladly help you arrange to have an inspection conducted within a few days of your offer being accepted by the seller. An inspection contingency protects you by giving you a chance to renegotiate or withdraw your offer without penalty if the inspection reveals significant defects to the property. 

Title Search Process

A title search determines who has the right of ownership for a property. It is considered "clear" if there are no claims or liens against it. In order to make sure nothing will prevent transfer of the property to you, a title company will conduct a title search and prepare a preliminary title report that indicates what recorded matters affect the title to the property and if the title insurance company is willing to insure the title. At the close of escrow, the title company will issue an Owner's Policy of Title Insurance to protect you against losses that might arise from covered claims on the title.

Preparing For The Closing Costs

A home purchase is a complex transaction involving many parties and associated fees. In addition to your deposit and down payment, there are several other costs involved in the close of escrow, including:

  • Loan origination fees, appraisals, and reports
  • Surveys and inspections
  • Mortgage insurance
  • Hazard insurance
  • Taxes
  • Assessments
  • Title Insurance, notary, and escrow fees
  • Recording fees

The lender will provide a Loan Estimate of these costs prior to the close of escrow, so that you will know in advance what to expect.