BUYING A HOME

Preparations for the Home Stretch:

Things you should know from the start

However distant the dream of a first or a different home, it is wise to prepare early. Review your credit and financial situation, become familiar with your tastes and review your present home, if you have one, to assess its needs and approximate value. Early research saves time. It provides space to build savings and whittle down obstacles, such as poor credit.

Review your Finances and Credit. Establish a rough figure for how much money you can spend on a house, and read the "How Much Can You Afford" page. The dollar figure you can raise for a down payment, gross income, fixed debts, employment and job stability, equity in a present home, savings and disposable assets figure into the calculations. The web sites of the agencies at left offer practical advice and tools.

Find and engage the services of a REALTOR® to help turn the fruits of your research into a plan of action. Salt Lake Board of REALTORS members are real estate professionals with local expertise. The section, Buying--The Home Stretch, starts with the many other reasons for engaging a REALTOR®, and helps you find the right one for your needs. Remember your REALTOR® has access to, and can show you the properties listed on the Multiple Listing System. Some of the sellers of these properties are offering to pay your REALTOR® when you buy their home, so the services of your REALTOR® could cost you nothing.

If you haven't joined forces with a skilled professional, now is the time. The link at left provide the tools you need. Choosing the Right REALTOR® is the next task. The Directory of members of the Salt Lake Board of REALTORS® is one of several places to start. The guide to Designations can help narrow the search to a handful of professionals with specialized skills to match your needs, and the Worksheet offers a way to whittle down the shortlist.

For home buyers, a REALTOR® can be depended on for:

Special knowledge of neighborhoods, schools and local merchants
Presentation of a wide variety of areas, values and homes for the buyer's consideration -- the basis of an informed buying decision
Inspections to determine the condition of the property and presence of hazardous material and safety violations
Money-saving negotiating skills
Real estate education and practical experience
Legal protection on the transaction documents
Money-saving protection against fee overcharges
Lien and encumbrance protection
Follow-through from showing to closing

In partnership with the REALTOR® of your choice, take the following steps:

Estimate how much home you can afford. Prequalifying for a mortgage loan is a good way to be sure you are searching and buying in your price range.
Obtain pre-approval for a mortgage loan to strengthen your bargaining power when the right property is found. This is also a good time to decide which mortgage company will handle the loan.
Begin house hunting with your agent. Your agent can provide you with tools to help you manage information during this process. Your agent will provide you with the information on the properties that are available in your price range that meet your criteria, and make arrangements to show them to you.

Once you have selected a property, discuss the decision with your REALTOR®. Your REALTOR® has the education and experience to help you in making an appropriate offer for the home.

Stay abreast of negotiations between the seller's agent and your own
When a price has been agreed, pay the pre-agreed deposit
Find a Home Inspector and arrange for a Home Inspection. Confer with your REALTOR® about the inspector's findings, arranging through your agent with the seller to ensure that remedial work will be done before the sale OR negotiate through your agent for a price reduction to cover remedial work after completion of the sale.
Contact your mortgage company and let them know the final agreed sale price so that the paperwork can go forward
Arrange for home insurance
Read about title insurance and find a title insurance company
Inspect the home again to check that pre-agreed repairs have been made.
Coordinate the time and arrangements through your REALTOR® for settlement and the completion of the purchase of your new home. You will meet to review and sign the settlement documents. Most generally this "settlement" takes place at a title/escrow office. The escrow office will go over the documents as you sign them. Your REALTOR® and possibly your lender, if applicable, will be there with you as you review and sign the documents.
It is customary to take good funds in the form of a cashier's check in to the settlement, or to have the necessary money wired to the title/escrow company.
As the funds are cleared, and if applicable, the loan proceeds are received by the title/escrow company, the deed to the property will be recorded into your name at the county court house.
Based on your contractual agreement with the seller, you will be given the keys to your new home, and be able to take possession.
CONGRATULATIONS!