Build Your Team!
Buying a home is a team effort! Having a trusted, professional team can give you a great experience!
When you’re building your team, ask for help from your realtor, friends, family, referrals and online research.
Your Realtor.
Your realtor is a valuable professional with extensive contacts in the housing marketplace! He/she can recommend lawyers, inspectors, appraisers and mortgage lenders. Your realtor is typically paid by the seller, so he helps you but represents the seller.
It’s important that you select a realtor you like and trust. Take some time to ask questions about their housing experience, views on negotiation, knowledge of the neighborhoods you like.
Your Lawyer.
Your lawyer represents only you. Your sales agreement is a legal contract. Your lawyer should review it.
At the closing, your lawyer can advise you and make sure the property is delivered with a clear title.
Your Mortgage Lender.
Once you have a sales contract, your lender will require additional paperwork from you to lock down your financing. Give them a copy of the sales contract.
Your lender will hire an appraiser to determine the property’s market value.
Your Property Inspector.
You can schedule a property inspection either before or after you make an offer. Trying to save money by skipping a professional inspection is usually a mistake!
The inspection may reveal property defects that allow you to request a reduction in the contract sales price. The property inspector works for you and expects payment when he delivers the report to you– usually $200-$500.
The Appraiser.
Your lender hires an appraiser to assure themselves that your contract purchase price equals or is less than the market value of the property. If the appraisal market value comes in lower than the contract price, there are several scenarios.
You can come up with the difference by making your downpayment larger. You can look for another lender who will finance at the contract price. You can request a reduction of the contract sale price. You can walk away as your financing contingency has failed.
Ask your lender to order the appraisal early in the process for your own peace of mind. You may have to reimburse the lender for the appraisal at $250-$500.
Your Friends and Family!
You can learn valuable information from others who have been through this process themselves. Friends and family are on your side!
