How to buy a home in 10 steps! 1) Determine BudgetBefore you start the home buying process you should determine how much house you can afford. Contacting
Buying Your 1st Home In 10 Easy Steps
How to buy a home in 10 steps!
1) Determine Budget
Before you start the home buying process you should determine how much house you can afford. Contacting a local lender can help estimate how much you can afford to spend on your new Southwest, Florida home or condo!
Down payment and closing cost
Down Payment can range from $0 down (VA Loans) to minimum of 3.5% with 580 credit score (FHA Loans) and 1%-20+% down (Conventional Loans)
Typically the higher the credit score and larger down payment, can lead to better rates. Some loan products will require PMI (Private Mortgage Insurance)
B) Closing Cost
Most costs come from the lender, if you're paying cash your closing cost will be minimal. They will range from 3%-6% of the final sales price for most loans.
2)Get Pre- Approved for a mortgage
After you know what you want to spend on your new home, it's time to get the cash to buy it! Most buyers agents and many sellers want buyers to be Pre Approved before working with new buyers. You should find a lender and don't forget to consider their responsiveness, transparency, and estimated closing timeline. Need a lender recommendation ?
Apply For Pre- Approval
When you find the perfect lender, apply for the pre-approval. Lenders will check many things to determine if you will qualify for a new home loan. They will check pay stubs, bank statements, tax returns, credit card statements, student and auto loans, etc.
Don't forget- Just because you're approved for a certain amount doesn't mean you need or can spend it all! Prepare your own monthly budget to figure out what you’ll be comfortable paying.
When you get the pre approval, DON'T make any large purchases or life changes. Like buying a new card, opening new accounts with your credit or quitting your job. It negatively affect your credit score.
3) Find A Buyers Agent
You're approved and ready to start shopping, now what?
Time to find a buyers agent to help protect you and make the home buying process seamless. Your agent should have knowledge on the area you wish to live in, Negotiating skills, understands the current market and knows the home buying process inside and out!
Working with a Florida Life Team Agent
We hate sales, but love marketing! That means we are not pushing for an easy sale. We answer our phones. We live, work, and play in the areas we serve. At the end of the day, we are here for you on your largest purchase!
4)Start Home Shopping
When you collect your new pre approval and your new buyers agent it's time to SHOP!
Picking Detailed Criteria
Determine your ideal neighborhoods, number of beds/baths, must haves, must needs, and price point.
Searching for homes can be a lot of fun! I’m sure you have been looking night and day for the perfect home on FloridaLifeTeam.com.
You can create your own account here and you will be able to save homes and even create home alerts for hot homes that fit your criteria!
Book Tours- When you find homes you like, you should have your agent book in person home tours!
Open Houses- Many listing agents host open houses for the public to show off their new home and give potential customers the ability to view the home on their terms. (Don’t forget if you're working with a buyer's agent, tell the agent at the open house you are already representative.
New Homes- Your agent might show new home communities or a scatter lot new builds if you do go with your agent. Don’t to tell the builder or builder rep you already have an agent and to send info to your agents email.
5) OFFER TIME-
After you find the perfect home it’s time to have your agent get an offer together. Your agent will send over comparable homes to come up with a offer price. You will also have to decide on the terms that fit your needs. Like a closing date, EMD (earnest money deposit),who will title company and pay title insurance.. Ect..
After Your Offer Gets Accepted
After your offer gets accepted it's time for inspections, remove any contingencies, appraisal and repairs if needed.
You have many inspections you can get on you new FL home depending on where the home/condo is located.Your agent should go over what inspections you should get depending on where your new home is located.
Florida Life Team recommends all new home buyers get a home inspection on their new home.
So many contingencies an offer could have. One big one for buyers using a loan is appraisal contingencies. Meaning the house must appraise for the amount you are offering. Do you have a house to sell first? That’s another contingencies that needs to be removed. Your agent will help when it comes to what contingencies your offer will need.
8) Clear To Close
After the Inspections, appraisal, any repairs you requested were completed,removed any contingencies, and any conditions your lender requested were completed, the lender will send over the clear the close
9) Closing Time
When the lender sends over the "Clear To Close" your title company and or real estate attorney will set up a time for you to come in and sign! If you wont be in town when closing day arrives, please make sure you let your buyer agent and closing team know! The team will get a "Mail Away" closing together!
10) Get Keys and party!
After you loan has been funded the title company or real estate attorney will hand over the keys and all the paperwork to your new home. This should be a very exciting time of your life and should cherish homeownership <3
Are you ready to buy a home?
Call, Text, Email, or Facebook us today! 941 303 9575
Florida Life Team is an Exclusive Real Estate Brokerage + Marketing Company.
Florida Life Team LLC
(941) 303-9575 (Call or Text)