| By Heather Spencer - The Jensen Team - Home Marketing Experts Keller Williams Classic Realty NW, Licensed in MN
Be Prepared to Look at Homes:
-Before looking at homes you should be at the point where you are ready to make an offer if you find the right house. This means having all your mortgage paperwork in order as well as being mentally prepared.
-Slip on shoes are always a good idea.
-Be prepared for the elements. In the winter wear warm clothing and boots, especially if looking at foreclosed homes.
-Young kids and pets are best left at home.
-Things to take with you: Flashlights, Tape Measures, Your camera.
Be Prepared to Make an Offer:
-Before you go out to look at homes you should be pre-approved from a lender. A pre-approval letter will need to be submitted with your offer.
-When making an offer you’ll need an Earnest money check. This should be about 1% or more of the purchase price. The check will be cashed within 3 days of an offer being accepted. If the offer is not accepted you will get this money back.
-Purchase agreement. Things you will want to consider before sitting down to fill out a purchase agreement with your agent are: what amount do I want to offer, what date do I want to close and earnest money amount.
What happens after an offer is submitted:
The seller can:
1. Accept the offer as is
2. Counter your offer
3. Reject your offer
Counter-offers are sometimes done verbally. Once all of the terms are agreed upon all changes will be made to the purchase agreement and buyers and sellers will initial changes or sign an addendum. A verbal agreement in not binding in the State of Minnesota.
Types of homes:
-Traditional Seller: This is when a seller is selling their own home and not as a short sale. These are typically the smoothest transactions because you are able to get answers in a reasonable time frame and negotiation is possible directly with the seller.
-Short Sale: This is when a home’s market value is less then what the seller owes on the loan. In order for the seller to sell the home at loss the bank that holds the mortgage must approve the loss. Short sales are typically the longest process to go through and are VERY unpredictable. Every short sale is different and there are little answers along the way. Some short sales are not able to get worked out with the bank before the home goes into foreclosure.
-Bank Owned (foreclosures): This is when the homeowner stops making mortgage payments and the bank that holds the mortgage takes the home back and sells it. These are typically sold below market value and sometimes need work. Bank owned homes are sold as-is and typically there are very strict rules on how the bank will handle the transaction. These can close within 30-60 days of making the offer. FHA 203K loans are available if money is needed to fix up the property. Bank-owned homes are not as easy to purchase as traditional transactions, but not as difficult as short sales.
Other Considerations:
Time is of the essence:
We believe buyers should be well informed of what’s available in their price range. When a house comes along that is a good value (or fits your needs better than anything else) submitting an offer in a timely manner is important. If you’re seeing a good deal, so are other buyers.
Wish Lists:
It’s a good idea to prepare a list of items that are important to you in a home. Vary rarely do people find 100% of the things on their wish list however. When looking at homes keeping an open mind is important. Being flexible and focusing on the things that are the highest priority are good ideas.
Money that is needed before closing*:
-Earnest money – typically around 1% of purchase price and will be cashed within 3 days of getting an accepted offer.
-Inspection – Usually ranges from $300-$450 based on size of home and inspector. This is paid directly to inspector at the time of inspection.
-FHA Appraisal – Lender can provide this number to you. This is paid to your lender. They arrange the appraisal.
*It’s best to get a complete estimate from your lender. Different types of financing have different requirements.
Communication is Key!
We will do our best to go above and beyond to meet your needs. Our goal is find you a home that you are happy with and to make the process as enjoyable as possible. Home buying can be very stressful. Although we can’t make all the conditions perfect, we will use our Real Estate knowledge and experience to guide you through the process and to keep you informed along the way. Every buyer is different. Please let us know if there is anything we can do to meet your needs in a way that fits you better. | ||||||||||||||||||||||
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