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Using a real estate agent is the best way to streamline the process of buying a home. It is recommended
that you always utilize a agent.
Preparing to Make an Offer
Confirm basic information about the house that you are interested in buying. After you have found a
house that you like, and believe that the asking price is within reason, it is wise to check out a few
problem areas. Before making an offer, consider these items:
 Inquire
about any unusual title matters that may affect the owner's ability to transfer "fee simple" title to buyer.
For example, are there any heirs of prior owners that may claim an interest or any extraordinary liens (e.g. tax liens
or mechanic's liens)? Are there any other would-be buyers who may claim a contractual right to purchase?
Inquire
about structural integrity of house.
Are there any known structural problems, such as roof problems or foundation defects?
Inquire
with the local zoning and building code administrators about pending zoning changes and possible construction in
the neighborhood.
Sometimes homeowners are motivated to sell because a zoning change or new construction,
other than single family homes, may make an area less attractive. If you are looking at a house in an area where
these kinds of changes are possible, make sure nothing is in the works that could affect the appeal of the
neighborhood or its market value.
Negotiating the deal
Once you have satisfied yourself that serious problems do not appear to exist, and that the asking
price is within your range, it is time to see if you can strike a deal. A Real Estate Agent can help make
negotiations between the buyer and seller, and draft a contract to be signed by the involved parties.
Applying for a loan
Although you do not need to wait until you have a signed contract to apply for a
mortgage, most people wait until they have a contract to seek a loan. Whenever you apply, be prepared
to supply a great deal of information about your financial history. Following is a checklist of the
items nearly every mortgage lender requires.
A check for credit report and appraisal fee.
These fees vary, but plan on at least $50 for each individual credit report and $300 for the appraisal.
Social Security number(s).
Residency information for past 2 years.
Addresses
Name and address of landlord, if applicable and/or letter from parents
Name, address and account number of Mortgage Company, if applicable
Employment information for past 2 years.
Name, address, and telephone number of employer(s)
Dates of employment
Income from employment (have copies of tax returns for prior two years).
Base gross income (i.e. before taxes)
Amount of overtime for past 2 years
Amount of commissions for past 2 years
Amount of bonuses for past 2 years
One month of paycheck stubs
W-2 for past 2 years
Other income
Amount of dividends/interest for past 2 years (provide tax returns)
Child support (provide divorce decree and evidence of payment) – must continue for at least 3 years
Rental income (provide a copy of lease and name, address and account number for Lender, or, if no lease, copies of last
two years income tax return, schedule E)
Assets
Names, addresses, account numbers and balances of all accounts at banks, savings and loans, credit unions, brokerage
firms, etc.
Copies of most recent 3 months statements from asset accounts
Stock and bonds – number, descriptions and value. If using these funds for down payment and/or closing costs, please provide
evidence of ownership.
Life insurance – cash value and face amount.
Vested interest in retirement fund (provide statement if available)
Make, year and approximate value of vehicles
Liabilities
Loans: names, addresses, account numbers, payments and balances
Credit cards: names, addresses, account numbers, payments and balances
Child support/alimony: provide divorce decree and payment printout
Real estate currently owned or owned in the past two years
Property type: single family dwelling, raw land, lot, etc.
Dispositions: sold, sale pending, rented, etc.
Market value
Annual tax and insurance amounts
Name, address and account numbers of any mortgages, if applicable
If owned free and clear, copy of the current insurance policy
Pre-Closing
After the contract is signed and the loan application process is underway, it is time to think about
preparing for “closing”. Closing is simply the "event" where the seller and buyer come together to make the
final delivery of their respective obligations.
For the seller, this means delivering possession and a deed to the house that conveys title as called for
in the contract. The seller should also, in most cases, deliver a title insurance policy.
For the buyer, it means delivering the funds necessary to complete the purchase. Buyers who have never
purchased before are especially encouraged to have legal counsel to assist at this stage, as well as throughout the
process.
Arrange for inspections.
These should at least include inspections for termites and other wood-destroying pests and a mechanical inspection. With
older homes or those where some structural concerns exist, you may want to consider a full-blown structural inspection, or
at least, a more focused inspection of problem areas such as the roof or foundation.
Make moving arrangements.
Contact utilities, telephone company and cable TV providers
to arrange for services in your new home.
Send Change of Address notices.
Review closing documents.
Identify the items you will need to produce at closing.
Personal identification is a must.
Remember to let your agent work for you.
They will make arrangements with the Title Company and Mortgage Company to ensure that the process of buying a home is a
smooth as possible. |
