buying a 7 steps for

A MUST READ BEFORE BUYING

A HOME

SAVE TIME AND

MONEY

MeetJessee.com

BECOME INFORMED IN THE BUYING PROCESS

7 Steps For Buying A

Home

Unless you will be paying for a home with cash you will need to look into some type of financing. There are many types of Mortgages but the most common financing for first time home buyers is an FHA mortgage. The down payment for this loan program is 3.5% of the final purchase price. For example if your sales price is $100,000 your down payment would be $3,500.

Reach out if you would like help buying your dream home!

(Not Including Closing Costs)

After saving up for your down payment you should have three to six months of reserves after closing on

your home. This would be additional funds to help cover your liabilities for three to six months should

something happen.

Are You Ready To Buy A Home?You may be considering buying a home but have no clue where to start. I may not be able to turn you into a home buying "expert" with a single guide but it will give you a much better understanding of the home buying process. So that should you decide to buy someday you feel a lot more confident about the process. Regardless if you choose me as your realtor or not I hope you take advantage of this information and the process becomes enjoyable, fun and exciting for you!

Transfer a fixed amount into a special savings account every month.


Tips for saving for a down

payment

Set up an automatic direct deposit into a savings account. Commit to never use these savings for any purpose other than your down payment.

Even temporarily, earnings from a second income can help make substantial contributions to your down payment savings.

Reduce high interest rate debt.High interest rates on credit cards can seriously limit your ability to save. Start with paying off your highest interest rate card, when you've paid the entire balance, close the card and proceed to pay off the next.

Lower your expenses.Review your expenses and look for what you can reduce or eliminate. Put the money you would have spent on those items into your down payment savings.

Get a side hustle.

After you have saved up for a down payment and have your reserves in place you will need to find a realtor to help you with the home buying process. A good realtor will do the following for you:

Ensure compliant processes under state & local regulationsUse sales skills to negotiate the best priceResearch listings that match your criteriaKeep you updated with local market activityCompletes & submits paperwork such as agreements, invoices and other documents Schedules & attends showings as well as other meetings such as title signing

One of the most personally influential financial quotes comes from Robert Kiyosaki the author of Rich Dad Poor Dad.

"You Create Your Own Poverty"- Robert Kiyosaki


Tips for finding a

realtorOpen houses are a great way to meet and interview several realtors without having a formal office meeting. This also shows you that the agent is willing to work weekends!

Attend Open Houses To Interview Agents

Look on FaceBook as well as other social media pages Facebook groups as well as real estate pages are great places to find a realtor.

Browse local real estate websitesYou can find agents on agent websites as well as brokerage sites.

Ask friends, family and coworkers if they know of an agent.Your social sphere is a great place to find a recommended agent especially if they have bought and or sold a home with that agent.

Office walk-ins and neighborhood signage.While going to the store or back and forth from work keep an eye out for road signs. This is usually a good sign that someone else has trusted them to get the job done especially if there is a "SOLD" sign posted. Office walk-ins are another great way.

Here is a quote by writer Mark Twain that put an interesting perspective on real estate.

Buy land, they're not making it anymore.- Mark Twain

Now that we have our down payment, reserves and a good realtor working for us we need to get pre-approved for a mortgage. If you are not sure where to start then ask your realtor. They should have a few recommendations for mortgage lenders in your area that they have worked with in the past. You will need to submit a loan application with the lender where they will evaluate credit scores, income to debt ratios, employment history and other things related to your ability to be good for the loan amount. While this seems like a lot of work a good lender will make the process seamless and get you house hunting in no time!


Tips for getting approved

Sticking with your employer while going through the home buying process is crucial. Any changes to your employment or income status can greatly delay the mortgage process or disqualify you all together.

Stay at your job

Pay Down Debt and Avoid New DebtYou don’t need a zero balance on your credit cards to qualify for a mortgage loan. However, the less you owe your creditors, the better. Your debts determine if you can get a mortgage, as well as how much you can acquire from a lender.

You don't need perfect credit to qualifyMany mortgage programs will require a 620 or higher credit score in order to qualify for a loan. Although, FHA loans are available to people with credit scores as low as 580. However, just because you have a 580 credit score doesn’t mean you will automatically qualify. Lenders look at a lot more than just your credit score.

“Not now” doesn’t mean “never”Home ownership is just not a realistic option for everyone right now. If you fall into this category, don’t despair. Your financial circumstances could change, the economy is still very much in flux, and remember a lot of home buyers getting in over their heads. When it comes to a major purchase like a home, timing is critical.

Congratulations, you have been pre-approved for a mortgage. Now you can start looking for your dream home. Some things to consider when looking is proximity to family, schools and commute to work. Work with your realtor so that they understand your must haves. Then they can help you identify homes that not only fit your must haves but your budget as well.

“Beware of little expenses; a small leak will sink a great ship.”

- Benjami Franklin

After viewing a few homes your criteria may change. This is a normal part of the process. Make sure to stay in communication with your realtor so your both on the same page.


Tips while house hunting

What kind of house do you prefer? Do you want a one-story home or two? How many rooms? How much square footage? A yard for a dog? These are questions you need to answer in advance, before you start house hunting. You need to know this information, and your realtor does as well.

Identify your housing needs

Understand your budget and what your budget gets youBe realistic about the pricing. It's going to limit the features you can afford when buying a home. If you want a three-bedroom home with at least 2,500 square feet, but your budget is more in line with a two-bedroom home of 2,000 square feet, you'll have to make some compromises.

Compile a list of must havesThese are things you simply can't do without. If you're moving up from a two-bedroom home because your family has outgrown it, then a three-bedroom home is a must-have item. You can't compromise on this. Put these items on a separate list from the other things you want, or highlight them in some way for your real estate agent.

For most the perfect home does not exist

“Don't wait to buy real estate, buy real estate and wait.”

- Will Rogers

Here's a universal truth of home buying. You will never find a house that has every single thing you want. But you will find a place that has most of the things you want, and possibly all of the things you need. So be flexible.

Think about home value appreciationDon’t just go for a groovy porch or spacious yard. Look for a home that’ll grow in value over time. Research the history of home values and businesses in that area. Are home values rising? Is the number of businesses increasing? Those are good signs!


Submitting an offer with your pre-approval letter tells the seller that you are serious and qualified—you are ready to purchase, and you have already committed to a lender. If the seller has a higher offer from a buyer without a pre-approval letter, your offer will likely win.

Submit a Pre-approval Letter With Your Offer

Be as quick as you can when submitting your offer—especially if the house hasn’t been on the market long.

Know what you’re looking for in advance and assume you’re not the only person looking at the house—because you probably aren’t. You want to beat other buyers to the punch!

ADOM (Average Number of Days on the Market)If the home you are preparing to offer on has been on the market any more than a couple of weeks beyond the average DOM in your area, the seller's motivation level is likely to be higher, and the market has begun to "educate" the seller that the list price might just be too high. Whether you are buying in a buyer's or seller's market, a much longer-than-average DOM is a signal that there may be an opportunity for you to purchase the property at or below the list price.

The written offer is legally binding, so in most cases a simple letter won’t work. There are many state, and sometimes local,

laws guiding the process, so you’ll want to cover all the bases by using a sales contract or what your realtor might refer to as a

purchase and sale agreement.

The Offer Process:1. Submit An Offer2. The seller accepts, counters or declines the

offer.3. If it’s accepted, you move on to the next step.4. If the seller makes a counteroffer, you either

accept it or make a new offer — and go back to step 2.

5. If the offer is refused, you can make a new offer or begin a new round of house hunting.

Tips For Submitting An

Offer

Be Fast!!Well priced homes sell fast. We

recently had buyers in the market for their first home. A perfect home for them went live at 6:00pm, and we were viewing it by 6:30 pm. Other

Realtors and buyers showed up but were too late. We had an offer

submitted by 7:30pm, and we locked up the deal for our buyers because

they were available and ready!


Everything is negotiable but be prepared to walk away

Make sure inspectors note the inspected items

You will never get what you don't ask for. One example would be if the inspection reveals major problems with the home, you can ask the seller to fix the problem, reduce the price, or cancel the contract. Should the seller not be be willing to come to agreeable terms than walking away from the deal may be your best option.

The most dangerous negotiation is the one you don't know you're in. - Christopher Voss

Once you get to this step, you’ll officially be under contract on your new home! It may seem overwhelming but it's something to celebrate. Being under contract also means you’re done with the most time-consuming stages of the home-buying process.

The point of the due diligence period is to work through the contingencies put forth in the purchase & sales agreement. Common Contingencies Written Into A Sales Contract

Home InspectionsFire Place InspectionFurnace InspectionWell flow test

Engineers report for Septic SystemTitle ReportWell Flow Test

Other contingencies may include but are not limited to appraisals, final loan approvals, contractor bids, land soil tests and receipt & review of documents that

may not have been provided at the time of submitting the offer.

Tips for the due diligence

periodBe sure that all inspections be completed by a licensed professional

The last thing that you want to have happen is the owner do their own repairs and things fall apart shortly after moving in.

For example if your getting a furnace or hot water heater inspection make sure its itemized by units that were inspected and don't accept generalizations such as "heating systems operational". A further layer of protection is to make sure the company doing the inspection notes the unit being inspected by its serial number.


You have recorded and you can now move in!

The harder the conflict, the greater

the triumph.

- George Washington

Most closings require the buyer to bring funds for closing. The funds have to be in an acceptable form. That’s usually a cashier’s check made out to the escrow company or wire transfer. Be sure to find out what type of identification is required. Usually, only one type of identification is needed, though some companies require two. Government-issued identification, such as driver’s licenses and passports, are normally accepted.

Congratulations, you are now the owner of your own home! Whether you share it with family, friends or pets I sincerely wish your able to fill your life with joy and memories to last a life time in your new home! I genuinely appreciate that you took the time to read this general guide even if I am not or was not your realtor of choice. I hope that in return you feel more informed and confident going forward with the home buying process! If I was lucky enough to be your realtor our goal is for you to have so much confident in us as your realtors that should you decide to sell after several years of living in your home that we are the first ones that come to mind! Sincerely, Thank you! - Jessee

Communicate any questions

While in closing do not hesitate to ask questions, especially if there is something you are confused about.

Do not assume because you are getting a copy of everything that

you will be able to figure it out later. Just ask!

Once everything is signed and your funds required to close have been paid we wait for recording. Your realtor should already have the keys to the property but you can not move in until the property has recorded. This usually happens within twenty four hours after your lender has wired funds.

"You can never have too many pictures but you can have too

few. Create memories!"

- Jessee

“It’s OK to have your eggs in one basket as long as you control what happens to that basket.”

- Elon Musk

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