Purchasing your first home can seem daunting, leaving you with lots of questions and uncertainties. Let these 4 easy steps show you how simple and stress free home buying can be with our team!
- Buy with Confidence…
It is important to consider all your priorities when searching for a home. At a certain price which features do you want and which features do you need? For instance, would you trade fewer bedrooms for a larger kitchen? A longer commute for a bigger lot, or lower cost? You’ll want to consider all your needs in advance. We will work with you to narrow down your selection of homes based on the criteria to find the top choices. The market is always in flux and never static so it is important to have representation working for you who has access to multiple options of homes available for purchase. Sometimes, new construction may be the best option, and other times it may be a pre-existing home.
- Offer with Expertise…
The price you offer for a home is based on a wide variety of factors. These factors are specific to the local market, your financial situation, and the determined property value. Others may include days on market, the condition of the home, the desirability of the neighborhood, sales price of comparable homes, the resale potential, and always the Seller’s motivation level. We use specially-developed tools and training to help you get the home you want at the best price possible. We have access to up-to-the-minute information about the Boise area market, including specifics in your preferred neighborhood or community. A comparative market analysis or “CMA”will be used as a guide in making an offer that is in tune with the current market. Tools and data will take into account all the factors that may affect a home’s value and potential price.
We will work closely with you to effectively advise on a fair offer price. There will likely be inventory conditions, competition factors, seasonal trends, neighborhood amenities, and other influences that can affect demand. Proximity to schools, parks, shopping, and transit can play a significant role in determining your offer price.
The Pending Process…
When a Seller accepts your contract to buy their home, we say that the home and offer is “Pending”. There are sequential steps that must be completed before the purchase is complete, which happens at the “Closing”. These steps include:
Title Commitment
This is a search and examination of the public records for matters affecting the title to the real estate being purchased. It may include looking for unpaid taxes, easements, names of people on title and outstanding liens and mortgages.
Inspection
This is where you as the Buyer get to hire a third-party, not-related-to-the-transaction, person to inspect the physical conditions of the property you are buying. They will inspect the roof, the attic, the crawlspace and all rooms of the structure. It is strongly recommended that you attend the inspection or at least the tail end, so that if you have any questions regarding the property you will have the opportunity to ask the inspector. The typical inspection takes approximately 1 to 2 hours and the cost is your responsibility as the Buyer. Every inspector is different and the time it takes depends on the square footage and acreage of the property. At the conclusion of the inspection, the inspector will give you a detailed report of items found that may be of concern. These items can be addressed with the Seller as an addendum to the purchase agreement.
- Manage the Pending Process…
Appraisal
An appraisal is a standard part of the lending process. Banks and mortgage companies will grant their loan based on the appraised value of the property(as the home will be used as collateral for the mortgage). An appraisal is done by a state licensed Appraiser and is much more detailed than a CMA. Some items in the appraisal will include comparing the subject property with three similar properties in the area that have recently sold. TheAppraiser will assess the real estate market where the subject property is located and highlight any negative aspects affecting the market value like poor physical conditions, deferred maintenance, or neighborhood factors.
Loan Conditions / Closing Certification
When the lender has fully approved the loan a closing certification is provided to the Buyer. This is a document which states the terms under which the lender agrees to make the loan. It will include the interest-rate, length of the loan agreement, and any requirements the Buyer is expected to meet.
Final Walkthrough
As a Buyer, you will be given the chance to look at the home in person (“Walkthrough”) to make sure it is in the same condition as when you first saw it and signed the purchase agreement.
- Closing Day…
Closing day brings together all the parties in a real estate transaction. It is sometimes called settlement or signing, but in most cases, you will go to a Title Company to sign the paperwork related to the purchase. The closing takes about an hour and will be conducted by a trained representative of the Title Company who will compile all the documents needed to transfer title in the property and record those documents with the county. At closing, the Title Company will prepare a new deed. Your lender will require that you sign the loan documents and deed as evidence that you are responsible for repaying the loan.
You may be asked to set up an escrow account. This is a neutral depository for funds that will be used to pay expenses incurred by the property such as taxes and property insurance that are due in the future. There is little a Buyer needs to bring to closing other than their state-issued identification and possibly a cashiers check for any amount above and beyond the loan. Be prepared to sign multiple pages of documents. If there is a mortgage involved in the transaction, the funding will occur soon after the closing. Once the funding and final recording have happened, the Seller receives their payment for the home and the Buyer receives ownership…the keys, garage door openers, etc.
Congratulations! We made it and you have a home.
