The home buying process in 10 simple steps

It can seem like such a confusing procedure, but we can break the home buying process down into 10 major steps.

1. Find the right real estate agent
Having a savvy real estate agent on your side makes the whole process so much more simple. Working with a professional who knows the market, the process, and how to get the best home for you takes much of the stress out of buying a home.  Plus, it doesn't cost you a dime.  An agent's commissions are paid by the home's seller. Real estate agents have access to important information not available elsewhere that helps you become a more knowledgeable buyer. Finding an agent that works well with you and your personality is critical.

2. Get prequalified
Getting prequalified is a simple task that lets you know exactly what price range to seriously look at and it also gives you the upper edge when it comes to multiple offers on the same home. Having a prequalification letter to present when you do put in an offer on a home gives you the upper hand over someone who hasn't been prequalified.  It lets the seller and their agent know you are capable and able to purchase the home without any foreseeable hiccups in the process. If yours is one of a few offers, a letter gives you strength in the negotiating. 
To get prequalified, you need to provide basic financial information to your lender. They will crunch some numbers and let you know how much they can lend you. Your real estate agent will also be able to help you find a good lender if you don't have one yet.

3. Figure out how much house you can afford
Some lenders give out general guidelines such as, you should look for homes that are 3 to 4 times your annual household income if you plan to make a 20% down payment. Others suggest the 28/36% rule - purchasing a home that is no more than 28% of your gross monthly income, and keeping your total debt below 36% of your gross monthly income. Your agent works with lenders every day and knows which ones are the best. Take their advice if you can and your lender will know exactly what will work best for you.

4. Start your research

There are so many houses to see! You probably already have a few neighborhoods, a certain style of home, bedroom requirements, and price range in mind, so just tell your agent what you are looking for and get busy. Your agent will give you current information on homes listed and available for you to view that meet your specifications and needs. They also know the housing trends and how to help you find the perfect new home.   

5. Shop for your home and make an offer
This is the fun part. You get to go look at homes that you and your real estate agent have found that meet your specifications. Taking a few snapshots of each home will help you keep track of your favorite aspects of each home. You will find yourself imagining where you will put your furniture in each house, your car parked in the garages, how friend and family get-togethers will work in each home, and what bedroom will work the best for each child. You'll figure out which house is the perfect home. Then you and your agent will make an offer on that home. Your agent will have already completed a lot of research about the current market trends in your area so you can be confident you are getting the best deal possible. When you and the seller agree on terms, you can then put your favorite house under contract.  

6. Get an inspection and research your due diligence
Part of the due diligence process is getting an inspection done on the home. Let your agent make these arrangements. An inspection lets you know if anything in the home is in need of repair or if there is structural damage that must be addressed. The due diligence period protects you because if anything is found to be of any concern at all, you can renegotiate your offer or completely withdraw your offer without penalty. Both the buyer and the seller receive copies of the inspection and it can be decided who will take care of any repairs that need to be made. You will get a final walk through to make sure all agreed upon terms have been met.

7. Work with your lender and determine your best loan option
Staying in contact with your lender through the home buying process is necessary. Your agent will also be involved and helpful as well. There are all kinds of loans available. When you let your lender know what is most important to you, they will be able to find a loan that fits your needs. 

8. Get an appraisal on the home
Your lender will arrange for an appraisal of the home to get an estimated current value of the home. The appraisal lets you and your lender know if you are paying a fair price for the home. If the appraisal comes back lower than your current offer price, negotiations will usually have to be made and the price of your offer lowered. That usually means a better home price for you. 

9. Let your agent coordinate paperwork

There is a great deal of paperwork that goes into purchasing your home.  Let your agent take care of it. Your agent and lender will arrange for a title company to take care of the paperwork as well as you await to move into your new home. 

10. Close on the home and get the keys
At closing, you sign all the paperwork that is required for your new home ownership. Loan documents are also included. It usually takes a few days for the loan to fund and all the paperwork handled. Once the seller receives their payment, the home is yours and you get to move in!

I hope this information has helped you get a clearer picture of the home buying process. I would be glad to answer any questions you may have about purchasing a new home, 801-631-3430. 
P.S. Here is another post explaining due diligence you may want to have a look at.

Brought to you by Heath @ HeathsHomes.com

Celebrate with the old fashioned Christmas spirit

Come to the 2nd annual Old Fashioned Christmas

at the Heber Bank Block Building, 2 South Main

Friday, December 15th from 6 to 8 pm

This is a great event with live reindeer, pictures with Santa, cookie decorating, hot chocolate, ornament making, scavenger hunt -  all free to the public. I'll be in the Innovative Real Estate office making ornaments so please stop in and see us. I have a special treat for you. 

Lola's food truck and Fuego Mexican Grill food truck will be there for your dinner enjoyment.

Please join us for a real Christmas experience!

Brought to you by Heath @ HeathsHomes.com

Deciding if it's THE RIGHT home for you is easier than you think

When you are on the search for a new home, how will you know you found the right one? Here is the official, simple checklist.

- Well hopefully your realtor is only showing you homes in your price range, so the right price? CHECK

- When you drive through the neighborhood do you see yourself going home? Do you see yourself fitting in here perfectly? CHECK

- When you see the exterior of the house does it make you excited to see what's inside? Does it look like a safe, comfortable place for you? Are you thinking about your favorite flowers in pots on the front porch? CHECK

- When you walk inside are you already thinking that the Christmas tree would look great here or that your mom would love this kitchen? Do you imagine changing the paint color of a room to fit your tastes better? Then CHECK

- Do you take a few pictures on your phone and can't wait to send them to a few best friends? Are you feeling excited to have a group of your favorite people over for dinner? CHECK

- Have you already overlooked a few flaws? (EVERY house has them.) Do you already feel protective over this home, wanting to ignore something that isn't perfect? CHECK

- Does it just feel right? Deep in your gut and in your heart, does it feel like a good decision? It can be hard to get over the butterflies and excitement of such a big purchase, but do you feel good about living here? Then CHECK

So what do you do next? You put in an offer. Today. Not tomorrow. Don't sleep on it. Today. There are SO MANY people that lose their chance to purchase a great home because they wanted to sleep on it. They hum-haw about it for a day or two and then tell their agent they think they are ready, and their agent tells them that someone else put in an offer and it was accepted that morning. Don't let this be you. If you snooze you lose. Don't sleep on it, just do it. Your gut and your heart is telling you to do it. It's the right house.

Brought to you by Heath @ HeathsHomes.com

Winter in the Park

Here are quite a few great, outdoor, winter activities available for you right here in your backyard. Take a look and put a few on your calendar. I guess we better get out and enjoy this winter weather in our beautiful valley. We waited all summer for this!

All of these events are at Wasatch Mountain State Park. Call Kathy at 654-1791 if you need more information.

Brought to you by Heath @ HeathsHomes.com

Cassidy and Tristi

Here are two of my friends, Tristi and Cassidy. They are amazing and they are doing amazing things. One of those amazing things is hosting their podcast - Sweatpants Chronicles.

Their podcast has changed the way I think, for the better.

Everyone should give them a listening whirl. EVERYONE.

This is what they say about themselves on their website:

Two friends learning how to live their best lives and love themselves at the same time!

Are you struggling to love yourself and feel like you'll never be good (skinny, pretty, successful etc.) enough? Are you working yourself ragged and still coming up short at the end of the day? We've been there too! We exhausted ourselves with the struggle and decided we'd had ENOUGH. Enough of the mean girls (in real life and in our heads). Enough of the anxiety. Enough of the insecurities. Se we said STOP IT to all those voices telling us were not enough. And we embarked on our own journeys towards self love with the help of great friends, a whole lotta feelings, and some functional fitness.  It was hard work but we've come a long way and now we want to help you become the total badass you already are! We're going to have real life conversation - conversations you might not even have with your best friend. We'll talk you through the tough topics while crying and (hopefully) laughing with you along the way. So grab your favorite caffeinated beverage, throw on your comfiest sweatpants and stay awhile.

 

You can subscribe to their podcast here and find them on Facebook here. Seriously, they are great. They can help you feel great and be great as well. They talk about some serious topics that many of us deal with everyday, or actually, some of us don't deal with at all, although we should. If you have EVER considered seeing a therapist but are apprehensive for any reason, give these two gals a go. Cassidy is a licensed clinical social worker and Tristi is a straight up, talk it out girl.

Brought to you by Heath @ HeathsHomes.com