Keeping it local and making the home buying process simple for you

If you chose to work with two local professionals, Heath and Tom, they will make the home buying and loan process go so smoothly. Here is what will happen:

First, getting prequalified with Tom is a simple task that lets you know exactly what price range to seriously look at in your new home search.

Second, you get to begin your home search with Heath while Tom works on getting you preapproved. A preapproval letter gives you the upper edge when it comes to multiple offers on the same home. It gives you such an advantage over another buyer who hasn't been preapproved. The preapproval letter also lets the seller and their agent know you are capable and able to to purchase the home without any foreseeable hiccups. If your offer is one of a few, your preapproval letter gives you strength in the negotiating.

Third, when you find the home that you love, you and Heath get to put in an offer, negotiate, and eventually sign a contract. You are now 'Under Contract' and it is an exciting time.

Fourth, an inspection of the home will be ordered and completed. If there is anything in the home that needs to be repaired or if there is any structural damage, this is now addressed. There is a magic period of time during the 'Under Contract' time frame called DUE DILIGENCE. The due diligence process allows you to do your research on the home and property. During this time, the inspection is completed and you get to research anything and everything about the home to make sure it is exactly what you want and all of the property is in order. If there are repairs to be made, Heath and the seller's agent will work out who will take care of the needed repairs. The due diligence period protects you because if there are concerns, you can renegotiate your offer or completely withdraw your offer without penalty. A final walk through will be completed by you and Heath to make sure all agreed upon terms have been met.

Fifth, a loan application will be completed. Tom will help you figure out which loan is the best fit for you.

Sixth, an appraisal on the property will be arranged by Tom. An appraisal lets you and Tom know if you are paying a fair price for your home. If the appraisal comes back lower than your current offer price, negotiations will resume with the seller and usually the price of the home will be lowered. That means Heath will be able to get a better home price for you.

Seventh, processing and underwriting your loan takes time. Tom takes care of all of this while you get to start packing.

Eighth, a closing disclosure will be sent to you from Tom that sums up your loan.

Ninth, the disclosure leads to your final loan approval. Tom and Heath have been busy taking care of necessary paperwork and making arrangements with the title company to finish up your loan.

Tenth, signing your loan documents and closing your home purchase is the last part of the process that gets you into your new home. Heath will attend the closing with you and make sure everything is in order. It usually takes a few days for your loan to fund and the paperwork to be recorded. Once the seller receives their payment, the home is yours and you get to move in.

Brought to you by Heath @ HeathsHomes.com

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

Why the real estate due diligence process is your friend

Some people are a little apprehensive about putting real estate property under contract.  The word CONTRACT seems so permanent and some may think it means you are locked in to buy the property no matter what.  That is not so.  There is a magic little effort called due diligence.  Due diligence is pretty much just doing your homework and becoming educated on the property you're interested in and might want to purchase.

There are quite a few items you may need to check out about the property you like depending on if it's a home, land, or commercial property.  You can do this while under contract.  This isn't information you need to have previously gathered before making an offer or putting the property under contract.  If there is something that doesn't pan out for you once you begin getting the information, you are able to get out of your contract without a penalty and within the deadline that YOU and your real estate agent set. 

The purpose of requiring due diligence is to protect you and your investment.  It isn't however a wild excuse to put properties under contract on a whim knowing you have a way out of a contract. That is poor real estate etiquette. A good agent will lead you in the right direction and they will have your best interest in mind and keep you protected.

Brought to you by Heath Harvey @ HeathsHomes.com