When you are ready to begin searching for a new home, the process can seem overwhelming. Not only do you have to take a look at the homes themselves, but you have contract negotiations, inspections, financing and more. That’s why it’s important to have a professional REALTOR® on your side to guide you through the process and help look out for your best interests along the way.
A typical transaction roadmap involves the following steps:
Loan Pre-Qualification -> Home Search -> Write an Offer -> Negotiate a Contract -> Property Inspections -> Secure Financing -> Closing
While each transaction can be different, these critical elements form the backbone of most real estate purchases in Texas.
One of the largest pieces to the home buying puzzle is financing. While some people prefer to pay cash for their homes, a large majority take out a mortgage in order to buy property. Getting pre-qualified with a knowledgeable lender can help you to understand:
Once you have a good grasp of your financing options, your lender can provide you with a letter stating your pre-approval status. If you are looking to purchase a home by paying cash, your financial institution can issue a similar letter verifying funds.
Many sellers in today’s market require evidence of financial viability before even reviewing any offers. With that in hand, then you can move on to then comes the step of finding the right home.
One of the most helpful things you can do as a consumer is to come up with a list of priorities in your home search. If there’s a neighborhood or school district you have to be in, that can help you to narrow in on the right home much more quickly. If you have special needs (such as wanting to keep sheep) or extreme flexibility in your living space, it’s important to communicate these issues to your agent up front. That way they can work with you to narrow down your criteria and implement a comprehensive search of available homes.
Many people take up the home search themselves through the internet. This can be extremely informative, but also misleading, as many websites contain outdated or inaccurate information. Kimberly Howell Properties agents have access to thousands of the most up-to-date listings in and around San Antonio. This includes Boerne, New Braunfels, Pleasanton, and even Seguin. They are specially trained to help you sort through your criteria, examine neighborhood features, and show you available homes that meet both your wants and your needs. Even if a property is not listed on the local MLS, your agent can make arrangements to show you the property.
Your agent can then schedule times for you to tour your property choices, and help you keep track of your likes and dislikes for each home or area. If your criteria change, your agent can adjust your search accordingly.
Once you have found the home of your dreams, your agent will continue to research the market and help you to formulate and negotiate an offer. They can explain the terms of the contract to you, and help you put together an offer that is strong but also meets your specific needs. The offer will address a sales price, but will also cover issues of closing date, home warranty, repairs, title policy, and more, and your agent can explain the who, what, and why’s of each element. The agent will give you advice and information, but at the end of the day, it is your decision as to what price and terms you offer. REALTORs® are required to use specific state regulated contract documents. You are always advised to have an attorney of your choice review any offers or contracts, if you so choose.
Once an offer is submitted, you wait for a response from the seller. Possible responses include:
It is important to note that contracts are not legally binding in Texas until signed by all parties. Many times offers are negotiated verbally for ease and expediency; however, until all parties (buyer and seller) have signed off on all terms, the contract is not enforceable.
In the case of multiple offers, there are very specific procedures that should be followed by the seller. Ultimately a decision as to which offer is accepted or countered lies in the hands of the seller alone, and even a full price offer may not be selected. A seller working with an agent should be advised to treat all parties fairly and no single offer should be given an unfair advantage over another. Your agent’s experience, education, and professionalism can help you to navigate these tricky waters should you find yourself in this type of offer situation.
When the negotiating ends, and everyone has signed off on the paperwork, you’re officially under contract. Earnest money will be kept in escrow with the title company, a neutral third party.
There will be several critical elements that you and your agent can work together to address and complete as you move the process towards closing.
Once all of the above pieces come together, and the lender sends closing instructions to the title company for your loan, transfer of title, etc. you can arrange a time to close on the home. The title company will provide a breakdown of credits and expenses for both buyer and seller, called a HUD-1. You will generally go to a title company office to sign all closing paperwork and loan documents. You will deposit the balance of your down payment and closing costs to escrow, and your lender will deposit the balance of the purchase price. The deal is not closed until monies have been paid. This is often referred to as “funding.”
Once the property funds, you can pick up the keys and move in to your new home! Your agent can help you make the necessary arrangements for moving, utilities, and more.
