The Home Buying Process

Purchasing a Home is likely one of the single largest purchases that most people will make in their lives and can be a very intimidating process. That is why as a Real Estate Agent we don't just put people in homes but we help to educate the public about the process. So, one of the first things you should do is determine if buying a home is right for you. Owning a home is a big responsibility and not one to be taken lightly. When you own your home there isn't a landlord to call for repairs or quickly up and moving in the next year if you decide you don't like the neighborhood. Buying a house is a big decision and all aspects of life should be considered before jumping into it.

Now that we've decided It's the right time for you...

1. Hire a Real Estate Agent. Working with a Real Estate Agent provides you with a navigation system through the entire buying process. It gives you a sense of relief to know that there is a professional that is on your side to guide you, get you the best deal possible and connect you with the best people in the industry. When purchasing a home depending on the place you will have to work with loan officers, home inspectors, surveyors, closing agencies, and lawyers just to name a few. You want to know that you have the best people on your team and that's one of the major benefits when working with an agent.  Contact us here. 
2. Pre-Approval. Some people will say this isn't necessary as the first step but I beg to differ. Without a pre-approval you don't know what you can afford. It not only will waste time for your Real Estate Agent but it will waste your time as well. You could spend all of your time looking for things over or under your price range and have to start the entire search over. It's best to know what the bank says you can afford to buy then work from there. For a list of Lendors in the Huntsville Area contact us here.
3. Determine what you can afford. This seems redundant right?? Well it's not. The pre-approval will tell you what the bank thinks you can afford. They will give you this number in terms of thousands of dollars. You have to decide what is comfortable for you to pay. For example if the bank decides that based on your credit and income you are preapproved for a home priced as high as $150,000 which at current rates estimates to a monthly mortgage payment of  aproximately $1,000 but you are currently renting for about $800 a month a want to stay at or lower than that payment you will need to look for homes priced lower than your pre-approved amount so that you can feel comfortable and confident about your purchase. A good real estate agent will help you determine this. An agent who is only worried about commission will try to sell you the house priced the highest for the biggest commission.
   
4. House Search. This is the fun part! Before even searching you have to look at several things the first being why are you moving. Decide what your must haves are. If you are married or moving with someone else. Each of you must do this seperately at first then decide on the top 5 things you can't live without and those other things that would be good to have but wouldn't kill the deal. Searching for a home especially for a family is a process. Everybody has their own wants. The kids want a pool, the husband wants a man-cave, and wife just wants to be close to work and schools. Satisfying everyone will take compromise. So determine your "deal killers" and then head out on the search. Make sure you take a list with you and be sure to take notes about each home. Take pictures even about things you'll want to remember. It's easy for homes to start to look alike or mesh together after you have seen a few.
5. Make an Offer. Now we've found the perfect home for you. We put in the offer to the sellers based on comparable homes in the area. The sellers could come back with a counter but with a good agent and some negotiating on both sides the sellers sign off and we have a contract.
6. Due Diligence. Alabama is a "caveat emptor" state or otherwise known as buyer beware, therefore it is important to inspect the home prior to closing. What this means is that the buyer cannot go back to the seller after the sale of a home to complain about defects on the home unless the buyer can prove the seller knew about AND hid it during the selling process. To avoid these types of issues the buyer is responsible for out of pocket costs of a Home Inspection which can be as high as $500 and a termite inspection priced at about $125. ALWAYS include in your offer/contract that your purchase is contingent upon the home inspection, that way if the inspector uncovers issues with the foundation, mold, or rotting wood and you decide that's more than you'd like to deal with you can walk away to find a home that better suits your needs.
7. Find Homeowners Insurance. The inspection came back and it's acceptable. Now it's time to look for a policy for your Huntsville home. Get quotes from different companies and find the one that best suites you. Don't look for lowest cost but also the benefits and coverage they provide. Often times if you bundle your home and auto you can get a lower rate.
8. Closing. The closing takes place in Huntsville, Alabama typically at a title company. This is where you and the seller will sign all the necessary documents to transfer the title of the house. Once you have gotten here you have reached the finish line. You are now the proud owners of a new home. All that is left is to get the key and move in!