BUYING STEP-BY-STEP
To Begin
1) Make an appt with us - get our Buyer’s Manual and look at the actual MLS.
2) Speak with a LOCAL loan officer…. Get pre-approved…not pre-qualified…. most sellers will NOT look at an offer without a signed pre-approval letter.
3) Meet with us to start looking at homes - new, re-sale & foreclosures. If you are not certain about what you want to buy… it may be best for you to drive by some properties yourself first….. discuss this with us.
4) Choose the inspector that you will use (so that you don’t lose valuable time). (See 11 below)
5) Pick a house and review recent area sales and price and quality for offer price.
6) Work with us to write and present offer to seller.
7) Negotiations.
8) Contract accepted and executed by both buyers and sellers.
Buyer’s Steps After Contract Is Accepted
(most all these steps are done by Lenny and his Texas Realty Team)
(New Construction does not require an option period or option money!)
9) As soon as the property is under contract (signed and initial by both buyer/s & seller/s) ….the buyer needs to get a money order or cashiers check for the earnest and option money amounts (a personal check may work if you cannot get certified funds but all foreclosures require certified check for earnest money) (the earnest money goes to the title company (The earnest money can be wired to the title company) & the option money goes to the Seller via the Seller’s Realtor or Lenny. ** so if you are coming in from out-of-town… please bring cash or a supply of $500 money orders… unless your personal bank is here in the Austin area.
10 Verify that utilities are on and Order House & Termite Inspections.
11) The buyer needs to order a home and termite inspection immediately. MAKE CERTAIN the inspector and appraiser have their own electronic key to get into the property. (It is usually easier and less expensive to have the home inspector also do the termite inspection)
12) Buyer needs to review the results of the inspection MANY days BEFORE the Option Period EXPIRES….there may be additional inspections needed… time to discuss and write repair addendums as well as get addendums signed by sellers.
13) Write repair amendment (if any). BE CAREFULL! If you choose to let the seller do repairs… you may not end up agreeing with what/how things are done… better to try to negotiate a cash payment or price reduction in lieu of repairs
14) Secondary repair &/or price negotiations.
15) Submit final contract to all parties including buyers lender and title co.
16) Review Title Commitment from Title Company… ask your Agent for Help!
17) Talk with your loan officer to see what you need to get to complete your underwriting requirements. Make certain you understand the terms of your loan and know how much money you are going to need to bring to closing. Make certain you understand your Good Faith Estimate. Tell your loan officer that the appraiser they choose for the appraisal MUST have their OWN electronic key to get into the property.
18) *** The Lender (not to be confused with the loan officer) can question ANYTHING in your loan application/contract package right up to the closing/funding… it ain’t over till it’s over!
19) The buyer needs to determine what insurance company they are going
to want to carry their homeowners insurance. Get this info to the title company at least 5 days before closing.
20) Lender orders appraisal (the appraisal does NOT indicated the value of the home!... it needs to be at least the amount of the contract though)
21) The buyer needs to determine if they want a new survey.
22) Title company or Loan officer orders survey (if needed).
23) Lender gets closing docs to title company.
24) Determine what Home “Warranty” Company you prefer…. Our default choice is Old Republic.
25) Title company finalizes closing date/time (always an estimate).
26) You may want to take a ‘final’ look at the house (walk-through) on or better yet (in case there are any ‘issues’) a day or two before closing.
26) Call and prepare to get/transfer ALL utilities on and schedule re-key of locks. Texas Re-Key (512) 929-5397 are specialists and have great prices! IF you are going to rent you are required by law to follow the Texas Property Codes for rental properties (mainly rules about doors/locks & smoke detectors…etc…etc…) www.TexasPropertyCode.org
27) Closing & then sometime later that or next business day… the funding.
28) AFTER funding the Buyers have ownership and possession rights!….. Move!
29) Make sure you cancel homeowners insurance if you sold another home to buy this one.
30) Visit Post Office w/Settlement statement to get new mail box key.
31) Deal with various repair issues that may pop up… (this is where we can help you use the Home Warranty) The warranties DO NOT cover KNOWN pre-existing issues.
32) Make certain you file for your Homestead Exemption AFTER you’ve lived in the home after January 1st. The exemption is the simplest 1 page doc to fill out… see your counties home pg.
33) Remember that some of your closing costs are tax deductible!
Money Needed
Earnest Money: about 1% of contract price (at least $500.)
Paid when contract is accepted by both buyers & sellers…..Credited &/or Refundable at closing MUST be paid within 24 hours of offer acceptance…. You can wire it or leave Lenny with a check.
Option Money: about 1/10th of 1% of contract price (can be more)
Paid when contract is accepted by both buyers & sellers….Credited &/or Refundable at closing MUST be paid within 24 hs of offer acceptance. You can wire it or leave Lenny with a check.
Inspection Money: about $400+ (depends on size/age of home)+$100+ for AC Inspection if desired. Paid to inspector before inspection completed….usually 1-3 days after contract is accepted. Additional Inspections as needed: Septic, Well, Foundation, etc (each about $200-$500)
Appraisal Money: about $450+ (see your loan officer)
Usually paid to loan officer when contract is accepted…. You will probably be required to sign a credit card authorization form for the appraisal.
Survey: Not needed if Buyer has one and you're OK with using it. Usually paid at closing… except if there is a very large lot or acreage… the survey company may require payment upfront.
Misc: there’s always something extra… especially on homes more than 10 years old plan on ½ of 1% (of contract price) or 1%-2% for older homes just to be safe….
Property taxes OF THE SELLER will be credited to you but YOU are responsible for them at the end of the tax year (if your taxes & insurance are escrowed then they will be paid for you), .see your loan officer.
Closing Costs (usually from 1.5%-4.5% (see your loan officer))
Pre-Paids (escrowed taxes and insurance; usually about 1.5%)
Closing Costs and Pre-Paids…….
As well as any Down Payment is called:
“Funds Needed To Close”: $_____________________
See your loan officer's GFE: Good Faith Estimate (required to be given to you)
And carefully discuss the credit back to your for your earnest and option money.
After-Closing:
Moving Expenses
Repair issues not included in original contracts (remember… the inspection is limited)
Maintenance (lawn care… filter changes… smoke detector batteries… house & fencing upkeep)
Yearly increase in property taxes and insurance premiums
Payment increase if you have an adjustable interest rate.
Unexpected Problems (such is life!)
1) Make an appt with us - get our Buyer’s Manual and look at the actual MLS.
2) Speak with a LOCAL loan officer…. Get pre-approved…not pre-qualified…. most sellers will NOT look at an offer without a signed pre-approval letter.
3) Meet with us to start looking at homes - new, re-sale & foreclosures. If you are not certain about what you want to buy… it may be best for you to drive by some properties yourself first….. discuss this with us.
4) Choose the inspector that you will use (so that you don’t lose valuable time). (See 11 below)
5) Pick a house and review recent area sales and price and quality for offer price.
6) Work with us to write and present offer to seller.
7) Negotiations.
8) Contract accepted and executed by both buyers and sellers.
Buyer’s Steps After Contract Is Accepted
(most all these steps are done by Lenny and his Texas Realty Team)
(New Construction does not require an option period or option money!)
9) As soon as the property is under contract (signed and initial by both buyer/s & seller/s) ….the buyer needs to get a money order or cashiers check for the earnest and option money amounts (a personal check may work if you cannot get certified funds but all foreclosures require certified check for earnest money) (the earnest money goes to the title company (The earnest money can be wired to the title company) & the option money goes to the Seller via the Seller’s Realtor or Lenny. ** so if you are coming in from out-of-town… please bring cash or a supply of $500 money orders… unless your personal bank is here in the Austin area.
10 Verify that utilities are on and Order House & Termite Inspections.
11) The buyer needs to order a home and termite inspection immediately. MAKE CERTAIN the inspector and appraiser have their own electronic key to get into the property. (It is usually easier and less expensive to have the home inspector also do the termite inspection)
12) Buyer needs to review the results of the inspection MANY days BEFORE the Option Period EXPIRES….there may be additional inspections needed… time to discuss and write repair addendums as well as get addendums signed by sellers.
13) Write repair amendment (if any). BE CAREFULL! If you choose to let the seller do repairs… you may not end up agreeing with what/how things are done… better to try to negotiate a cash payment or price reduction in lieu of repairs
14) Secondary repair &/or price negotiations.
15) Submit final contract to all parties including buyers lender and title co.
16) Review Title Commitment from Title Company… ask your Agent for Help!
17) Talk with your loan officer to see what you need to get to complete your underwriting requirements. Make certain you understand the terms of your loan and know how much money you are going to need to bring to closing. Make certain you understand your Good Faith Estimate. Tell your loan officer that the appraiser they choose for the appraisal MUST have their OWN electronic key to get into the property.
18) *** The Lender (not to be confused with the loan officer) can question ANYTHING in your loan application/contract package right up to the closing/funding… it ain’t over till it’s over!
19) The buyer needs to determine what insurance company they are going
to want to carry their homeowners insurance. Get this info to the title company at least 5 days before closing.
20) Lender orders appraisal (the appraisal does NOT indicated the value of the home!... it needs to be at least the amount of the contract though)
21) The buyer needs to determine if they want a new survey.
22) Title company or Loan officer orders survey (if needed).
23) Lender gets closing docs to title company.
24) Determine what Home “Warranty” Company you prefer…. Our default choice is Old Republic.
25) Title company finalizes closing date/time (always an estimate).
26) You may want to take a ‘final’ look at the house (walk-through) on or better yet (in case there are any ‘issues’) a day or two before closing.
26) Call and prepare to get/transfer ALL utilities on and schedule re-key of locks. Texas Re-Key (512) 929-5397 are specialists and have great prices! IF you are going to rent you are required by law to follow the Texas Property Codes for rental properties (mainly rules about doors/locks & smoke detectors…etc…etc…) www.TexasPropertyCode.org
27) Closing & then sometime later that or next business day… the funding.
28) AFTER funding the Buyers have ownership and possession rights!….. Move!
29) Make sure you cancel homeowners insurance if you sold another home to buy this one.
30) Visit Post Office w/Settlement statement to get new mail box key.
31) Deal with various repair issues that may pop up… (this is where we can help you use the Home Warranty) The warranties DO NOT cover KNOWN pre-existing issues.
32) Make certain you file for your Homestead Exemption AFTER you’ve lived in the home after January 1st. The exemption is the simplest 1 page doc to fill out… see your counties home pg.
33) Remember that some of your closing costs are tax deductible!
Money Needed
Earnest Money: about 1% of contract price (at least $500.)
Paid when contract is accepted by both buyers & sellers…..Credited &/or Refundable at closing MUST be paid within 24 hours of offer acceptance…. You can wire it or leave Lenny with a check.
Option Money: about 1/10th of 1% of contract price (can be more)
Paid when contract is accepted by both buyers & sellers….Credited &/or Refundable at closing MUST be paid within 24 hs of offer acceptance. You can wire it or leave Lenny with a check.
Inspection Money: about $400+ (depends on size/age of home)+$100+ for AC Inspection if desired. Paid to inspector before inspection completed….usually 1-3 days after contract is accepted. Additional Inspections as needed: Septic, Well, Foundation, etc (each about $200-$500)
Appraisal Money: about $450+ (see your loan officer)
Usually paid to loan officer when contract is accepted…. You will probably be required to sign a credit card authorization form for the appraisal.
Survey: Not needed if Buyer has one and you're OK with using it. Usually paid at closing… except if there is a very large lot or acreage… the survey company may require payment upfront.
Misc: there’s always something extra… especially on homes more than 10 years old plan on ½ of 1% (of contract price) or 1%-2% for older homes just to be safe….
Property taxes OF THE SELLER will be credited to you but YOU are responsible for them at the end of the tax year (if your taxes & insurance are escrowed then they will be paid for you), .see your loan officer.
Closing Costs (usually from 1.5%-4.5% (see your loan officer))
Pre-Paids (escrowed taxes and insurance; usually about 1.5%)
Closing Costs and Pre-Paids…….
As well as any Down Payment is called:
“Funds Needed To Close”: $_____________________
See your loan officer's GFE: Good Faith Estimate (required to be given to you)
And carefully discuss the credit back to your for your earnest and option money.
After-Closing:
Moving Expenses
Repair issues not included in original contracts (remember… the inspection is limited)
Maintenance (lawn care… filter changes… smoke detector batteries… house & fencing upkeep)
Yearly increase in property taxes and insurance premiums
Payment increase if you have an adjustable interest rate.
Unexpected Problems (such is life!)