9 Steps to Owning a Home
Purchasing a new home first time? Purchasing a home can be stressful for many people, but with a bit of planning ahead of time, it isn't very complicated. So you'll understand exactly what to expect, we like to furnish our buyers with an outline of the whole deal. These are our nine steps to buying a home. When you're ready to get started, you can contact us here or send us e-mail. We're glad to address any questions you have about this information. Step 1 – Get ready to purchase a home Prior to beginning your home search, there are a lot of things you need to contemplate. You'll most likely want to form an index of must-haves, plan for what neighborhoods you want to live in, and begin planning your budget. A good rule of thumb to follow is that your mortgage payment should be 30 percent of your net monthly income. Step 2 – Communicate with a real estate agent That's where we can help. We can plan a time to get together so we can talk about why you want to buy a home and get an idea of your plans for the future. We'll discuss neighborhoods, school districts in the local area, the mortgage and housing industries, and any additional economic factors that might affect your buying decision today or in the future. We'll also help you start the loan process. Dash Realty works with some of the best mortgage professionals in Texas, so you can rest assured that you're in great hands. They will help you determine which kind of loan is best for you, as well as help you get approved. Step 3 – Begin looking for a home After we meet, we'll begin looking for homes on the market that are great for you. We'll research most of the homes and eliminate the duds, and then we'll set up appointments to tour the houses at a time that's convenient for you. As we tour homes, we'll point out positive features, as well as negative ones. And we'll ask you to tell us about things you like and don't like. Most often, buyers update their must-have list as we view houses and some items become far more crucial than others. If that's the case, we'll look through all the listings again and trim it down to the house you've been dreaming about. Step 4 – Get a feel for the market Your agent's awareness of the local housing market is a fundamental factor in your house search. And we assure you we're well acquainted with all the neighborhoods and schools, and we will communicate which districts are "hot" and call for immediate action and the rest that are "cool" and allow for more analysis. As we view homes, we'll be sure to tell you when the seller's asking price has room for bargaining and when we believe the home is "priced to sell." When working with an agent, be mindful and make sure you ask a lot of questions, as every REALTOR® will tell you they truly understand the home market. If things don't add up, just call us at (512) 670-1900 or e-mail us at Info@dashrealty.com, and we'd be more than happy to answer any questions you have. Our understanding of the market will help you stay a step above the rest throughout the entire process. Step 5 – Find the house of your dreams We're sure we'll find the home of your dreams in the area your dream to live, and when that happens, we'll precisely develop your purchase offer. The offer will be written with your needs in mind. Whenever necessary, We never forget to make contracts contingent upon items like obtaining financing and the results of the home inspection. Upon sending in your offer, most likely you'll need to submit "earnest money." This is a cash deposit given to a seller to secure the offer to buy the property, and it's often put towards the cost of closing. If your offer is accepted, we should close about 30 to 60 days after. This allows enough time for your mortgage financing. Step 6 – Negotiate Most deals don't close on the first offer – it's really common to receive a counter offer. Don't let it alarm you. We'll talk over whether or not to agree to the counter offer, submit our own counter offer, or reject the seller's offer and move on. How aggressively we negotiate the deal depends on the state of the market. We'll also work within your budget. And when it's all said and done, we'll formulate a contract that is best for you. Step 7 – Get your loan After the deal is finalized, you'll start working with your lender to close the loan. If you're pre-qualified, it shouldn't be a long process at all, but you'll need to stay in close contact with your lender. And we'll care for all the property information your lender will need to close the loan.> Step 8 – Close the deal You'll get a Good Faith Estimate (GFE) of your closing costs from your mortgage lender within three days of getting your application. The estimate depends on the loan amount. RESPA requirements order that it has to involve all closing costs and be within a close range of accuracy, and we'll examine the estimate and let you know if it all looks all right. Then it's time to close on your home. This should happen at a title company or escrow office and is often a smooth and comfortable occasion. Step 9 – Move in You made it! Now you can move into your new home. Enjoy it. And if you need anything or have any questions, make sure you call us at (512) 670-1900 or send us an e-mail.
What closing costs should you expect?
There are certain ordinary expenses related to closing the sale of a house. These expenses are usually split between the buyer and seller, as dictated in the sales contract. Many are universal, but there are nuances to each, so you'll want a real estate expert in Texas to help guide you through the deal. Costs pertaining to your loan to be paid at closing: Points (optional) Appraisal Fee Credit Report Interest Payment Escrow Account Taxes commonly paid at closing: Property Taxes Transfer Taxes and Recording Fees Insurance fees due at closing: Homeowners Insurance Flood or Quake Insurance (optional) Private Mortgage Insurance (PMI) (optional) Title Insurance Sellers: As we negotiate your sale, we'll not only work to get the optimal sales price, but we'll also advocate for limited closing costs. And once we've reached an agreement, we'll give a detailed list of the closing costs so you are aware of exactly where your money is going. Buyers: If you are buying real estate in Travis County, you'll receive a "Good Faith Estimate" (GFE) of closing costs within three days of submitting your loan application. The estimate is based on the loan officer's previous experience and is required to be within an acceptable range so you're not astonished when you show up at closing time. We'll be willing to look over the GFE with you, answering your questions and highlighting any estimates of concern.
Contingencies in Real Estate Contracts
In real estate contracts, the contingency is a common element. Contingencies are clauses in a contract that give either the buyer or seller a way to get out of the contract if certain conditions or timelines aren’t met. A commonly used example is that of a buyer making an offer on a new home before selling his existing home. The buyer needs to sell his present home before being able to get financing on the new one. So he makes his offer contingent upon the sale of his existing home. There will always be a time period associated with such a contingency. If the buyer is able to get his present home sold within that time period, the deal can go forward. But if he fails to sell within the specified time period, the seller has the option of getting out of the deal. In most cases, sellers won’t accept this kind of contingency, because they will most likely feel that they can find another buyer capable of closing the deal without needing to sell another home first. But new home builders are often willing to accept an offer contingent upon the sale of an existing home. Every contract can be unique. The possibilities for contingencies are virtually endless. Some of the more commonly used contingencies would include: Financing Contingencies that depend on the buyer being able to obtain financing are very common. Home Inspections Probably the most common type of contingency is the “contingent upon satisfactory completion of inspection”. There are any number of specific types of inspection for which a contingency might be included in a contract. Some of the more common would include inspection by a qualified home inspector for hidden defects, pest inspections, water and sewage system inspections, inspections dealing with the presence of radon or mold, etc. Appraisal It’s not unusual for a buyer to have a contingency that allows for a formal appraised value at or above purchase price. Since lenders will nearly always want an appraisal performed too, sellers usually don’t have a problem with this. Remember, just like everything else in real estate contracts, contingencies are negotiable. Always take care before signing that you are comfortable with all contingencies included in your contract. Likewise, take time to think about what contingencies you might like to have added.
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