The home buying process can be super over-whelming especially for first-timers!
There are mis-understandings about new terms, anxiety about making good choices
and core fears about how to get from the start of the process to the end without
losing their mind.
“Courage and commitment are prerequisites for purchasing a home,” posted
HomeStratosphere.com, “but immense cannot begin to describe the rewards.”
To help alleviate stress, hiring a Realtor who can break down the steps and help
walk through the process is essential!
Realtors often suggest the client talk over pre-qualifications and cash-to-close
requirements with a lender. The reason is two-fold: first, so buyers aren’t falling in
love with houses they can’t purchase and second to understand the monies needed.
Many don’t realize there are expenses beyond the down … simply it’s not cheap to
buy a home and it’s definitely not without some level of investment!
Without being over-whelming, nor stepping on the expert toes of the lenders, when I
sit with buyers for “Home Buyer School”, I share with them there are three checks a
Texas buyer will be required to write within the first week of the contract process:
earnest money, option fee and appraisal order. There is a fourth expense that is
optional though strongly recommended. Safe math is 1% of the targeted sales price
point plus $1500-1700.
· Earnest Money is a certain amount of money that a buyer pays to a seller to
demonstrate his good faith and intention to complete the transaction .
· The Option Fee is an additional payment made by a buyer to a seller in a real
estate sale. In return for the payment, the buyer gains the unrestricted right to
pull out of the deal for a designated period of time. Meanwhile, the seller can not
accept other primary offers.
· Any financed transaction will require an Appraisal. An appraisal is the
appraiser’s (trained and certified person who provides an unbiased estimate of
real estate value ) opinion of value for a real estate based on the particular
elements of the subject property and approved appraisal methods. The
evaluation is meant to protect both the buyer and lending investors investment in
the property.
· Lastly, most buyers will write one fourth check prior to close: the Inspection. A
r eal estate inspection is a written or oral opinion as to the condition of the
improvements to real property, including structural items, electrical items,
mechanical systems, plumbing systems, or equipment. While not required, it’s
sound advice and good planning for a buyer to get as much information as they
are able.
Buying a home has the potential to be the most exhilarating and simultaneously
stressful point to that day in the client’s life. I get it! Knowledge and planning help
them to feel prepared as well as comfortable knowing their best interests are being
looked after.