| The Home Buying Process |
The Home Buying Process
1. Getting Pre-approved
Before you start looking for a home, get pre-approved for a home loan, and obtain a
pre-approval letter. This will help you understand better how much house you can
afford and in which price range you can start looking. You will also have a greatly
improved negotiating position when you are pre-approved for a mortgage. Sellers
are more willing to negotiate with someone who already has a mortgage approval in
hand, and the pre-approval letter lets the seller know they are working with a
serious buyer.
2. Working with an Agent
When you choose to be represented by your buyer’s agent, you can expect the
highest level of client representation, and your agent will look out for your best
interest throughout the whole home buying process. In order to benefit from this
professional representation, Georgia real estate law requires a written and signed
“Buyer Agency Agreement”. Through this agreement you agree to handle all real
estate concerns through your agent.
3. The Search begins
Let your agent know what you are looking for, establish search criteria that are
important to you and for which you are looking in your new home. Your agent will
use several online programs to find those available homes that match your criteria.
You’ll be able to pick and choose, you’ll decide which homes you'd like to see.
Set an appointment with your agent to go out and view the homes.
3. Making an Offer
When making an offer on a house, keep in mind that you’ll be asked to put down
earnest money, usually 1% of the sale price, in form of a check. This earnest money
is to show the seller that you are serious with your offer. It will be credited towards
your costs.
Your agent will discuss with you the specifics of an offer, write the offer, and send
it to the seller’s agent, along wit a copy of your loan pre-approval letter and the
earnest money check.
The seller might send back a counter offer, which you can counter as well, until a
mutual agreement has been reached. Once both you and the seller agree on all
terms, you have a binding agreement, the house is ‘under contract’ and the
process is pending!
4. Your Action is required
Inform you mortgage advisor of the existing agreement, work with them and
provide them with the paperwork they need.
Shop around for Home Owner’s Insurance (Hazard Insurance), it’s mandatory that
you get it, you will not close without it. It protects your and the lender’s
investment. The costs vary from $300 to $700 annually, depending on the insurance
company you'll go with; the first year’s coverage will be paid at closing.
As a home buyer, you are encouraged to have a home inspection done. You may
hire one of the inspectors your agent will have available for you to choose from, or
you can hire an inspector of your choice. Depending on the inspection company,
the costs vary from $250 to $400, and will be paid at the time of scheduling the
inspection directly to the inspector.
Once you receive the full inspection report, your agent will discuss with you which
items you will ask the seller to have repaired and/or replaced, if any.
You are also encouraged to get a survey done on the property, and to obtain
owner’s title insurance.
A survey will show the exact property lines and measurements, and reveal any
possible encroachments. Costs are between $300 and $400.
Owner’s Title Insurance will protect you against any problems and issues that might
have existed in the past, before you owned the property, but could still be relevant
now or in the future. The premium is to be paid only once, at closing, and the
coverage will last throughout your entire ownership of the home. Costs are
between $500 and $700, depending on the sales price of the property.
Both items will be ordered by the closing attorney and will be included in the
closing costs.
5. The Closing
Your agent will take care of scheduling the closing with the attorney’s office, will
make sure that all necessary paperwork has been taken care of, and that the whole
process is going smoothly.
At the closing attorney’s office, yourself, your agent, the seller and the seller’s
agent will be present, and both you and the seller will sign several papers. The
attorney will go over the HUD (Housing and Urban Development) statement with
you, which will show an exact breakdown of all the costs involved in the
transaction, for both you and the seller.
As the home buyer you’ll have to pay closing costs at the closing table, and these
closing costs include:
*Lender fees and loan costs
*Pro-rated interest of the loan (from closing day through end of month)
*Pro-rated property taxes
*Attorney fees
*Costs for survey and title insurance
*Home Owner’s Insurance for 1 year
*Escrow payments to be held by lender for Home Owner’s Insurance and Property
Taxes
As a general rule of thumb you should expect about 3% of the loan amount as your
closing costs. Your lender will be able to give you a more accurate amount, and will
provide you with a good faith estimate. Your agent will try to get a look at the HUD
statement a couple of days before closing to give you the exact amount.
The closing funds need to be in form of a certified check or can be wired to the
attorney’s office a few days before the closing.
When negotiating the original contract with the seller, your agent will ask the seller
to contribute to the closing costs, meaning that a portion of what you as the buyer
are supposed to pay will be moved over to the seller’s side, thus your costs at the
closing table will decrease.
Once everything is settled at the table, you’ll get the keys to your new home, and
are ready to move in!
Congratulations on your new Home!
1. Getting Pre-approved
Before you start looking for a home, get pre-approved for a home loan, and obtain a
pre-approval letter. This will help you understand better how much house you can
afford and in which price range you can start looking. You will also have a greatly
improved negotiating position when you are pre-approved for a mortgage. Sellers
are more willing to negotiate with someone who already has a mortgage approval in
hand, and the pre-approval letter lets the seller know they are working with a
serious buyer.
2. Working with an Agent
When you choose to be represented by your buyer’s agent, you can expect the
highest level of client representation, and your agent will look out for your best
interest throughout the whole home buying process. In order to benefit from this
professional representation, Georgia real estate law requires a written and signed
“Buyer Agency Agreement”. Through this agreement you agree to handle all real
estate concerns through your agent.
3. The Search begins
Let your agent know what you are looking for, establish search criteria that are
important to you and for which you are looking in your new home. Your agent will
use several online programs to find those available homes that match your criteria.
You’ll be able to pick and choose, you’ll decide which homes you'd like to see.
Set an appointment with your agent to go out and view the homes.
3. Making an Offer
When making an offer on a house, keep in mind that you’ll be asked to put down
earnest money, usually 1% of the sale price, in form of a check. This earnest money
is to show the seller that you are serious with your offer. It will be credited towards
your costs.
Your agent will discuss with you the specifics of an offer, write the offer, and send
it to the seller’s agent, along wit a copy of your loan pre-approval letter and the
earnest money check.
The seller might send back a counter offer, which you can counter as well, until a
mutual agreement has been reached. Once both you and the seller agree on all
terms, you have a binding agreement, the house is ‘under contract’ and the
process is pending!
4. Your Action is required
Inform you mortgage advisor of the existing agreement, work with them and
provide them with the paperwork they need.
Shop around for Home Owner’s Insurance (Hazard Insurance), it’s mandatory that
you get it, you will not close without it. It protects your and the lender’s
investment. The costs vary from $300 to $700 annually, depending on the insurance
company you'll go with; the first year’s coverage will be paid at closing.
As a home buyer, you are encouraged to have a home inspection done. You may
hire one of the inspectors your agent will have available for you to choose from, or
you can hire an inspector of your choice. Depending on the inspection company,
the costs vary from $250 to $400, and will be paid at the time of scheduling the
inspection directly to the inspector.
Once you receive the full inspection report, your agent will discuss with you which
items you will ask the seller to have repaired and/or replaced, if any.
You are also encouraged to get a survey done on the property, and to obtain
owner’s title insurance.
A survey will show the exact property lines and measurements, and reveal any
possible encroachments. Costs are between $300 and $400.
Owner’s Title Insurance will protect you against any problems and issues that might
have existed in the past, before you owned the property, but could still be relevant
now or in the future. The premium is to be paid only once, at closing, and the
coverage will last throughout your entire ownership of the home. Costs are
between $500 and $700, depending on the sales price of the property.
Both items will be ordered by the closing attorney and will be included in the
closing costs.
5. The Closing
Your agent will take care of scheduling the closing with the attorney’s office, will
make sure that all necessary paperwork has been taken care of, and that the whole
process is going smoothly.
At the closing attorney’s office, yourself, your agent, the seller and the seller’s
agent will be present, and both you and the seller will sign several papers. The
attorney will go over the HUD (Housing and Urban Development) statement with
you, which will show an exact breakdown of all the costs involved in the
transaction, for both you and the seller.
As the home buyer you’ll have to pay closing costs at the closing table, and these
closing costs include:
*Lender fees and loan costs
*Pro-rated interest of the loan (from closing day through end of month)
*Pro-rated property taxes
*Attorney fees
*Costs for survey and title insurance
*Home Owner’s Insurance for 1 year
*Escrow payments to be held by lender for Home Owner’s Insurance and Property
Taxes
As a general rule of thumb you should expect about 3% of the loan amount as your
closing costs. Your lender will be able to give you a more accurate amount, and will
provide you with a good faith estimate. Your agent will try to get a look at the HUD
statement a couple of days before closing to give you the exact amount.
The closing funds need to be in form of a certified check or can be wired to the
attorney’s office a few days before the closing.
When negotiating the original contract with the seller, your agent will ask the seller
to contribute to the closing costs, meaning that a portion of what you as the buyer
are supposed to pay will be moved over to the seller’s side, thus your costs at the
closing table will decrease.
Once everything is settled at the table, you’ll get the keys to your new home, and
are ready to move in!
Congratulations on your new Home!
| Copyright © 2007 Katharina Pramor This website IS NOT the official website of Coldwell Banker Residential Brokerage or its affiliated companies, and neither Coldwell Banker Residential Brokerage nor its affiliated companies in any way warrant the accuracy of any information contained herein. Any products and/or services offered for sale on this website shall not be considered an offer to sell such goods and/or services in any state other than Georgia. Coldwell Banker Residential Brokerage is owned and operated by NRT, LLC. Equal Housing Opportunity Information deemed accurate but not warranted. Information subject to changes and withdrawals without notice |
