Buyer Guide
Buying a home is one of the most exciting milestones of your life. To prepare yourself for this moment, you need to know what to expect during the process. This step-by-step buyer’s guide will help reduce the stress of buying a home and help you enjoy the journey as much as possible.
What is driving your decision to purchase a new home or investment property? Do you know the location where you want to focus? Are you interested in a single family home, condo or townhouse, or are you an investor looking to purchase multi-family? Which features do you like and dislike? What’s available on the market now? These are all important things to discuss with your agent. In addition to looking for homes that interest you, also take note of any changes in asking prices. This could give you valuable insight into housing trends in specific neighborhoods. We will help you determine the answers to all these questions and ensure that your investment is prudent.
Notice I said to decide on your budget—not determine how much the mortgage company will give you. In many cases, a mortgage company will pre-approve you for more than you’re comfortable spending, which is why you need to determine the monthly payment you feel comfortable with before talking to a lender. This likely includes preparing a full household budget and taking into consideration what changes other than a mortgage payment will occur once you move into your new home. If you are new to the area, we can help you determine all the extras to be aware of like property taxes, insurance, HOA fees, etc.
Before getting to this step it is important to complete Step 1 so you can give the lender guidance on your budget. They will often approve you for more than is comfortable on a monthly basis, so it’s wise to know where you want to be first. Just as they may approve you for too large of an amount, they may also approve you for a lesser amount or deny you a mortgage altogether. Lack of time at a job, commission based income without a history, insufficient credit, past bankruptcies, or other financial issues can create hurdles when trying to secure a mortgage. Before you get your heart set on a home, talk to a mortgage professional to find out what amount you can qualify to buy. This is an important step to complete prior to getting serious about your home search. Having them pre-qualify you will not hurt your credit. Furthermore, in our market sellers will not entertain offers from those who aren’t already prequalified for a loan.
Buyer representation is free to you. Just as you would hire a professional in many other aspects of your life, it’s important you work with someone who is knowledgeable and will make sure you make a sound investment. Our team will seek out off market properties in many cases, negotiate a good value on your purchase price, and guide you through the process while helping you avoid potential pitfalls. Knowledge of neighborhoods, construction methodologies, characteristics of certain aged homes and environmental concerns are all important factors to consider when making what is often one of your largest investments.
My Goal is to Provide You a Tailored Experience That is Designed to Help You Enjoy the Process of Buying Your Dream Home or Investment Property
This should be the most enjoyable step of the process (other than moving in!). Our team will curate both on and off-market properties fitting your criteria and budget. While touring, take notes about what you like and don’t like, and make sure to pay attention to details. We certainly will! As we tour we can advise you of potential problems or items to look into further with an inspector. Don’t limit your inspection to the home itself. Make sure to take time to explore the neighborhood and keep an eye on traffic at certain times of the day, the parking situation, school ratings and how close it is to necessities like grocery stores and hospitals.
Once we have found the perfect home, we will work with you to craft an offer based on the value of comparable homes on the market. Depending on what the home is listed for and whether the current environment is a buyer’s or seller’s market, your offer may be below, at, or even above the asking price. We will negotiate through this process until we have an acceptable contract signed by all parties. Once a contract is executed, we will be officially in escrow you and will close on your home approximately 30-40 days later.
In most cases, your offer will include a due diligence or option period to ensure there is no major structural damage or large repairs needed. We will provide recommendations of excellent inspectors in the area from which you can choose. Based on the general inspection findings, it may be prudent to have additional professionals research issues further. If there are no major issues, the process goes to step eight. If there are, we can negotiate repairs or concessions off the price. If negotiations stall, or you simply change your mind during this option period, you may choose to terminate the contract.
Now is the time to go back to the mortgage lender who pre-approved you and choose your mortgage. You will be presented with various options based on your unique financial situation, including fixed-rate, variable-rate, 15-year, 30-year, or perhaps special programs such as VA loans or FHA loans. Work with your mortgage lender to select the option you feel the most comfortable with and be swift with getting them the information they need so there are no delays with closing.
Your lender will order an appraisal, or an independent third party opinion of value. This is to ensure that the contract price is at market value. In most cases if the appraisal is below your contract price, you have the option to renegotiate the price or terminate the contract.
No one looks forward to all the paperwork involved in buying a home, but it’s a necessary part of the process. Fortunately, everything will be arranged by your lender and title company to sign the day of closing. The title company will issue you a title policy that ensures the property is being transferred to you with free and clear title. The title company also handles all money transfers. Once you sign and the seller signs, the title company and lender review all documents to make sure everything is complete. Prior to this time you will need to set up utilities, change your address with the post office, etc. We will remind you of all these important tasks throughout the process.
It can take anywhere from a few hours to a couple of days for your loan to be funded once the paperwork has been signed, but once we get the official approval, it’s all yours!
With Jen's extensive experience selling custom homes and her personal experience with remodels, additions and new construction, she is a valuable asset to have when considering any investment or primary residence. When selling, she knows exactly what is needed, and what is not, to maximize your return on investment. As a Certified Negotiation Expert, she prides herself on her expert negotiation skills, which is often the key difference between a good investment and bad. Jen has lived in almost every pocket of central Austin and approaches every client purchase with an investment mindset. With her knowledge of the City's development code, leasing restrictions, land feasibility, construction methodology and age related pitfalls of certain period homes, you can rest assured you have everything covered when starting your next real estate endeavor.