Valley Real Estate

The first step is to select a professional to help you find your dream home at a price you can afford. It is worth your while to consider working with an Accredited Buyer's Agent (ABR) since he or she is not only legally responsible for representing the buyer's interest in the purchase of a home, but is specially trained to do so. Your HomeTeam is ABR accredited, and can guide you through every step in the home buying process.

Shop and dicker for a mortgage in the same fashion you would would when purchasing a new car. Compare mortgage types, rates and terms.  A difference as small as a half a percentage point makes a big difference in the cost of loan when spread out over 15 to 30 years.

Example: The difference in the monthly payment on a $100,000 mortgage at 8 percent vs. 7.5 percent is only about $35 per month. But, over 30 years, that's $12,600.

Make sure your lender gives you a "Truth In Lending Disclosure." This statement provides information about the proposed loan, such as annual percentage rate (APR), total payments, late payment charges, prepayment penalty, and assumption options.

Also obtain a good faith estimate of closing costs. This estimate gives you a rough idea of the fees the lender will charge you when you apply for a loan.

The HomeTeam can recommend three or four good lenders to you from which to choose. Our recommendation is solely based on the quality of their service to other past clients.

Hand and hand with step no. 2. is to get pre-qualified. In this step you find out how much home you can afford. Once you choose a lender whom you think will work hard for you, he or she will pre-qualify you for a loan. This means that within a given price range you can be relatively assured that you will be able to obtain a loan. Once pre-qualified with a lender, you can act quickly when you find the right home. Most sellers won't consider you a serious buyer until they know you can qualify for a loan to buy their property.

You're lender may also suggest that you sign a 'lock-in' agreement at this time to preserve today's interest rate. If you think interest rates on on the rise, this may be a good idea.

Now that you know how much house you can afford, you can develop a realistic idea of the property you'd like to buy. Make a list of location, features and amenities you "can't live without;" and a second list of those that would be nice to have as well. Discuss both lists with the HomeTeam. We can help you refine them to meet a realistic financial goal.

Tell what you want and where you want to be. Then we can begin to search online to see what is currently available and update you whenever something new come on the market. We'll try hard to only show you homes that meet your expectations, and you may be surprised to find out how many of those 'nice' features we can find within your price range.

Using the Dream Home On-line Portal you can quickly and easily pick all the home that interest you and discard the rest. Now we're ready for KEY #4 - Visiting the Properties.

Visiting the properties should actually be a two step process:

1. The Drive-By
   • Take the time to at least drive by every home that interests you, and carefully evaluate the curb appeal of each home.
   • Be critical of it's location. Will this location be in just as much demand 5, 10, or 15 years from now? Remember, too, that you are also buying the neighbors. How well do the neighbors maintain their homes?
   • Take condition and quality of the landscaping into account. How much will it cost to improve the site? The costs associated with landscaping are often overlooked by new buyers.
   • Has the home's exterior been well maintained, at least from a drive-by perspective?
   • Does this home 'invite' you in?
   • Those homes on your list that do not meet your critical buyer's eye should be dismissed. Although there are exceptions, a home that has not been well maintained on the outside, probably isn't much better inside.
      
2. Visit By Appointment and Rate Each Home
   • Now it's time to see all the remaining homes still in the running up close and personal.
   • The HomeTeam will call the listing agents to set appointments to view each home. By now you should have pared your list down to about six or so, but if you have more, we'll see those too.
   • Our HomeTeam Home Scorecard makes comparing homes we will  tour easy. It's handy check list to fill out and documents your perception of each home we tour.
   • Know the features that help or hurt resale. In some areas, a swimming pool actually detracts from a home's value and makes it harder to sell. In neighborhoods with two-car-attached garages, a single-car or detached garage may impact the home's sale and future value. Don't worry, the HomeTeam will point out features that hurt, and those that help, resale value.
   • Don't be discouraged if you find that none of the homes you toured is your perfect home. The HomeTeam will never pressure you to buy. We put the pressure on ourselves to find a home that does connect, and new homes come on the market everyday. We'll know when you finally find the home want. And when we do find it, be prepared to move quickly, because if you like it, there are probably other buyers thinking the same thing.
      

Make no mistake, you and the sellers have different agendas. The HomeTeam will be your most valuable ally, and our experience will give you a negotiating advantage.  We will advise you as to offering price, earnest money, contingencies,  fixtures to be included in the sale, as well as other special conditions of the sale. You can read more about making the offer here.

It's important, now, that you pay special attention to the Seller's Residential Property Disclosure. With this instrument the seller puts you on notice for any defect he knows the home may currently have. Your offer must take these defects into account now as they will excluded from further negotiation after the home inspection. See Key #8.

The HomeTeam will also try to negotiate a homeowner's warranty for your first year of ownership. A homeowner's warranty is especially useful when buying an older home or one that has been vacant for some time. If the seller won't provide you with a warranty, then consider purchasing one yourself. It could save you money in the long run.

Simply put, we will negotiate as long as it takes to reach a meeting of the minds. This is something we do very, very well.

Your contract will usually have a specified time period (usually five days) within which you must formally apply for your loan. (You've been pre-qualified, but you haven't made formal loan application.) This doesn't mean your loan must be approved within  five days. Normally, loan approval may take up to 30 days before you finally receive under-writing approval from your lender.

Work closely with your lender, and make sure he gets all the document he or she needs from you in a timely manner. Remember, your contract will have an expiration date (usually about 30 days from acceptance) and there is no guarantee that the seller will extend it.

Also, resist the temptation to run out and start buying all manner of new things for your new home - especially on credit. An up tick in your debt load could change your income to debt ratio significantly enough to nix your loan. The under-writers will always run another credit check just before closing.

Your Lender will take care of getting the home appraised. Although, the appraisal is for the protection of the lender, you will have to pay for it. You have a right to review and retain a copy of the appraisal. The contract should have a contingency in the event that the home does not appraise at least for the sale price. All HomeTeam contracts will carry this contingency for your protection.

Another contingency that the HomeTeam will have recommended is for you to carry out a certified home inspection. You probably will have to order the inspection within ten days after acceptance of the contract. While it's common to find all manner of minor problems, your attention will be focused on major defects, those that will cost more than $500 to repair and were not disclosed by the buyer before you made your offer. Although, we recommend that you not bring a laundry list of minor defects to the table, we will have the right to negotiate with the seller for the repair of major undisclosed defects.

The HomeTeam can help find a reputable inspector, and will negotiate to get you the most for your money once the inspector's report is final. If you negotiate repairs as part of the purchase, we will also ask for a "walk through" before finalizing the paperwork to make sure the work was completed as promised.

Other inspections to consider are tests for radon gas, toxic mold, and lead-base paint, as well as a termite inspection.

You may think that this day will never get here, but it will. Before your closing date, make sure you've made all necessary deposits and completed the paperwork - including mortgage, title, homeowners insurance and any other paperwork required by local or state governments. We will also make a walk through just before closing to make sure the home has not been damaged by the seller's move out, that all fixtures remain, and that negotiated repairs have been properly made.

Most of this will be done for you by your real estate agent, lender, and escrow officer all working in concert to bring your new home to a successful close.

Now comes the most physically demanding, but also the most satisfying step. Moving. But before you move in, re-key the home, arrange for an alarm company, put the utility accounts into your name, clean or replace the carpeting, and notify the post office of your new address. The best time for renovations is often before you move in.

Congratulations, you've made it!

1. Home Value and the Appraisal (8)
2. Furnishings vs. Fixtures (1)
3. Condominium Considerations (11)
4. The Escrow Process(5)
5. Finding A Home Right For You (5)
6. Consider The Fixer-Upper (8)
7. Homes In Foreclosure (12)
8. The Home Inspection (4)
9. Hazard Insurance (2)
10. Do You Need A Home Warranty? (9)
11. What About Interest Rates? (2)
12. Is The Lease Option an "Option?" (3)
13. Your Offer To Purchase (12)
14. Negotiating and Closing a Good Deal (19)
15. New Homes & Vacation Homes (10)
16. About Property Taxes (7)
17. Other Tax Considerations (15)
18. Property Owned "In Common" (2)
19. Home Affordability (9)
20. Vacation Homes And New Construction (5)
21. Working With A REALTOR (6)

1. Zoning and Permits (3)
2. I Own A Fixer-Upper. Now What? (4)
3. How To Find A Contractor (3)
4. Value Appreciation (7)
5. Dealing With Homeowner Associations (8)
6. Improving The Property You Own (15)
7. Homeowners' Hazard Insurance (2)
8. Why Get A Home Warranty? (9)
9. Dealing With Property Taxes (6)
10. Income Tax Considerations (14) 
11. When Should You Refinance? (4)
12. Reverse Mortgage May Be An Option (1)