Midgle Agency will guide you through this process so that you are comfortable and confident at each stage. You will always understand what is happening now, and what is going to happen next. We call this guidance managing your expectations. You will surely call it peace of mind.
Step # 1
Contact Midgle Agency to handle your real estate transaction.
The Midgle Agency Agents professional qualities and qualifications will ensure a rewarding relationship:
- Knowledge about the community where you want to live
- Enthusiasm
- Patience
- Dedicated, full-time professional, not part-time
- Full access to the area’s multiple listing service (MLS.) The MLS gives you information about homes listed with any realtor, not just those represented by your realtor’s company.
- Ability to understand your wants, needs, and personal tastes
- Honesty and trustworthiness at you into buying before you are ready.
- Willingness to keep you informed of changes in the market, without trying to push you into buying
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Step #2
Learn the terms used in buying a home.
Ask your realtor to familiarize you with the real estate jargon.
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Step #3
Select a lender and get pre-approved for a loan.
Pre-approval means you will provide the same paperwork as you will do when you make a formal loan application – credit history, employment, and down-payment funds, all of which will b e verified.
Pre-approval and a commitment letter guarantee your loan, but is not a mortgage contract. You cannot get the mortgage until the lender can appraise the property and conduct a title search. Midgle Agency will be happy to recommend lenders we have done business with previously.
So why get pre-approved?
You will know what price range you can afford_______________.
It may allow you to lock in an interest rate for a period of time. Even if rates go up while you house hunt, you get the rate you’ve locked in.
You will know how much cash is needed to close, including down payment, closing costs, and an estimate of pre-paids
You may be better able to bargain with a seller, because they already know you can secure a loan.
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Step #4
Make a list of needs and wants
Prioritize! Start with your most important needs or your “must have’s”. Then prioritize your wants, from “important” to “would be nice.” This list will be a constant reminder of what really matters to you and your family and will keep you focused and on track as you tour more houses.
The first time you look at a house, ask yourself these questions:
The Needs
- How far is my commute to work, church, family and friends?
- Does it have enough bedrooms and bathrooms?
- Is there enough storage space?
- Is there parking?
- Is it in a safe area/neighborhood?
- Is it in the right school district?
- Do I have room to grow in this house, or will I need to be looking for another house again in a year?
The Wants
- Is there an extra bedroom and/or bathroom?
- Is there a garden tub? Double vanity?
- Are there walk-in closets? Adequate closet space?
- Is there a fireplace? Is it wood burning or gas?
- Is there an island and/or eat-in breakfast are in the kitchen?
- Are there amenities in the neighborhood (i.e., pool, tennis, walking trails, etc.)?
- Is there a gathering room off the kitchen (i.e., den/great room/family room)?
- Is the master bedroom upstairs or downstairs?
- Is there a deck, screened or covered porch?
- Is there adequate parking? (I.e., attached/detached garage, carport, concrete drive,two spaces, etc.)?
- Is the yard big/small enough?
- How much maintenance does the exterior of the house require?
- Is the house in good condition: appliances, roof, foundation, mechanical systems, walls?
The second time you look at a house, ask yourself these questions:
The Needs
- How would you feel about coming home to this house after a hard day’s work?
- Where would you relax?
- Can you see yourself cooking in the kitchen?
- Will your armoire or other furniture fit in the living room?
- Is the bedroom quiet enough for sleeping?
- Open up the windows and listen to the sounds of the neighborhood. Traffic? Airplanes?
Are you listening to a nearby or distant highway?
- Do you feel relaxed in the house?
This is just a partial list of the questions Midgle Agency wants you to ask yourself about the house you’re considering buying.
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Step #5
Decide on the style of home and home ownership you want.
Choose from a beautiful selection of distinctive styles from classic Georgian to contemporary. Then choose the type of home ownership that suits you best.
a) Single Family. As the owner of a single family dwelling, you are totally responsible for paying the mortgage, property taxes, insurance and any other carrying expenses, including all maintenance costs.
b) Condominium. As a condo owner, you own your living quarters in the same way that a single family homeowner does,. You also own a share of the common space, such as gardens, parking areas and community facilities (pool, recreation area, tennis court or golf course). You pay a monthly maintenance fee for the common expenses. The homeowners association which you belong to makes decisions about how the condo is run.
c) Co-Operative. As a co-op owner, you buy a share or a number of shares in the corporation that owns and manages the building your apartment is in and the land it is on. If you took out a mortgage for the apartment, you are responsible for paying it off. You also pay a monthly maintenance fee for your part of co-op expenses, repairs, and taxes. You must be approved by the co-op board before you can purchase.
d) Multi-Family. This type of home has separate living quarters for two or more families. The owner may be able to use rent from the other tenants to cover his or her own housing costs. These homes are often restricted to certain areas by zoning laws.
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Step #6
Start house hunting.
House hunting is a process; it takes time. Don’t expect to find your dream house the first time out. Your Midgle Agency agent will talk to you about the style, the type, and the important features of the house you’re looking for. The more specific you are, the less time you’ll waste looking at houses you won’t like. You’ll look at several houses and neighborhoods and understand what your money will actually buy.
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Step #7
Find a home you want that is in your price range.
You’ll begin to zero in on the houses that fit your budget and living strategy, as well as meet all of your prioritized needs and wants.
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Step #8 Make an offer in writing.
Once you decide on the best home for your family, your next step is to negotiate an offer to purchase.
Before you make your offer, your Midgle Agency agent will research market information about your chosen house so that you can make a realistic offer to the seller that has a good chance of being accepted. That information includes:
a) Recent selling prices of similar homes in the area to justify your offer price.
b) How long has the house been on the market?
c) What are the house’s good and bad points?
d) Why are the current owners moving?
e) Consider the house’s resale value.
Very important:
- Check out the neighborhood and speak to neighbors.
- Be careful to not let your feelings rule. Remember, if your offer is turned down,
you can always counter with another offer.
You must apply for your loan immediately after your offer is accepted. Once the offer is signed by all parties and delivered, it becomes a legal contract. It covers items such as the purchase price, total down payment, and closing date. The offer also states which party (buyer or seller) will pay for which settlement costs, the type of loan you are pre-approved for, and the interest rate. After the offer is accepted, your loan officer will order an appraisal. This is an evaluation of the property’s value. You will probably pay the appraisal fee at loan application or closing.
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Step #9
When your offer is accepted, provide documentation to lender for final approval of your loan.
If you are pre-approved for the loan, you will provide the same information to your lender for the final approval: This includes: a) credit history; b) employment history; c) down payment funds, all of which will be verified.
Homeowner’s Warranty. In addition to a home inspector’s report, you can also protect yourself with this warranty. It is especially useful when buying an older home or one that has been vacant for some time. The seller may offer a warranty with the sale. If not, you can buy a warranty on your own. Ask your Midgle Agency agent about this.
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Step #10
Have the inspections done.
Inspections are usually paid for by the buyer, but can be arranged by you or your Midgle Agency agent. Home inspection professionals are specifically trained to evaluate structural components (floors, walls, roofs, chimneys, foundations, etc.) mechanical systems (plumbing, electrical, installed appliances and other major components of the property and provide a report to you.
Most lenders also require a Termite Inspection. If termites are found, you must have proof that the house has been treated and that any termite damage has been repaired.
It is normal for some repairs to be needed after the inspections. Don’t expect the seller to automatically make all indicated repairs. This may be a point of negotiation between you and the seller. Talk to us about which ones you as the seller will take care of versus what the seller should be responsible for. This situation can lead to further negotiations about selling price.
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Step #11
Choose a real estate attorney to handle the closing.
Real estate transactions can be very complex, so it is mandatory that you retain a real estate lawyer or a lawyer who has experience in real estate closings.Midgle Agency can recommend an attorney if you don’t have one. Your lawyer will follow the specific guidelines set by your lender to ensure that all documentation and paperwork is complete and accurate for the closing. Throughout the home buying process, you will also enjoy the added expertise of Midgle Agency as your agent.
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Step #12
Prepare for the closing.
If the closing statement is available before the actual closing, Midgle Agency will review it with you. You will need to bring certified funds for the purchase and a copy of the buyer/seller contract.
Your attorney is responsible for making sure you have the paperwork and documentation needed to complete the closing without further delay. Your attorney follows the guidelines of the mortgage lender to prepare for this meeting. The papers are then signed and the deed is notarized. Title does not transfer until the deed is recorded at the Register of Deeds.
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The people present at a closing normally include the buyer, the buyer’s agent, the seller, the seller’s agent, the attorney, and sometimes the mortgage lender..
You will need to transfer utilities into your name as of the day of closing. Keys are typically exchanged at closing, unless agreed upon prior to that time.
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Congratulations!
You did it! With Midgle Agency as your expert guide through this exciting process, you have made a smooth transition from the house-hunting stage to actually moving in to a new home and beginning a new life for your family. Congratulations! We are proud to be part of this wonderful experience. |
