A little buyer's guide to help give you an idea of what to expect when you work with The Kehoe Group to buy your home.
IT'S ALL ABOUT YOU
Our business has been built around one guiding principle: It’s all about you. Your needs. Your dreams. Your home. We will work with you to understand your unique lifestyle, needs, and wishes because buying a home is more than a certain number of bedrooms or a particular ZIP code. It’s about your life, and it’s important to us.
Our focus is on your complete satisfaction. In fact, we work to get the job done so well, you will want to tell your friends and associates about it. Maybe that’s why so much of our business comes from repeat customers and referrals. Good service speaks for itself.
FIND AN AGENT
Choose the best real estate agent to represent you in finding and purchasing your dream home and sign a Buyer Agency Agreement to work together. It is important to trust your agent, as you will be spending a lot of time together and your agent will help you with one of the biggest financial commitments you will make.
GET PRE-APPROVED
Get pre-approved for a loan before you find the home you want to buy. Benefits include:
- You know your price range, closing costs, and monthly payments up front
- You only look at homes within your price range
- Your negotiating position with the seller is stronger
- Closing on your new home can happen more quickly
Start the Search!
After our initial discussion about your property needs and wants, I will set up a search to send you properties that fit all your criteria. I’ll also be sending you off-market and pre-market opportunities. In a competitive market, this will allow you to have a first mover advantage to some exclusive properties! I will also help you find homes through:
- Online real estate search sites, including my mobile search app
- Open Houses – accompanied by your real estate representative.
- For Sale by Owner (FSBO) signs as you drive through neighborhoods – we will make appointments to visit them.
- New construction developments – accompanied by your real estate representative.
HOW MUCH CAN YOU AFFORD?
There are three major factors when determining how much you can afford in regards to the purchase of a home:
- Qualification for the Mortgage
- Down Payment
- Closing Costs
MAJOR FACTORS IN QUALIFYING FOR A LOAN
QUALIFY FOR THE MORTGAGE
Lenders may require that your monthly payments range between 28 – 44% of your monthly income. The percentage will depend on the borrower’s credit rating. Your monthly mortgage payment to the lender will consist of:
- Principal on the loan
- Interest on the loan
- Property taxes
- Homeowner’s insurance
*If the home you purchase has an HOA fee, it will also be considered in your qualification.
DOWN PAYMENT
Most home loans today require an upfront, or down payment, between 3.5 – 25%. If you are able to pay more upfront, you may be eligible for lower interest rate loans, and shorter loan periods.
CLOSING COSTS
Additional fees and costs associated with loan processing and closing are required to be paid at the final closing, unless you are able to include them in your financing. Typically, closing costs amount to between 2 – 5% of the purchase price (not the loan amount.)
MORTGAGE PROCESS
Pre Approval
Application and interview with a bank or other mortgage loan company. Buyer provides pertinent documentation including verification of employment. Credit report is requested.
Underwriting
Loan package is submitted to underwriter for approval.
Loan Approval
Parties are notified of approval and loan documents are completed and sent to title.
Title Company
Title exam, insurance and title survey conducted. Borrowers come in for final signatures.
MAKE YOUR OFFER
Once you have found your dream home, I will research market data on the home to help you determine what to offer and we will present a written offer to the seller’s agent. There may be some negotiation required and the seller may either accept, reject, or counter your offer. When the seller accepts the offer, it becomes a legal contract.
INSPECTION / NEGOTIATION
You will hire a professional home inspector to conduct a thorough inspection of the property and we will negotiate with the seller to complete any necessary repairs. You will also want to hire an attorney to help with the transaction once you have a completed contract. Your attorney will act on your behalf to make sure their are no liens on the property, ensure clear title of the property, and also help negotiate terms in the contract to benefit you.
FINAL REVIEW + CLOSE
The closing is the formal process of signing papers, paying fees and closing costs, and receiving the keys to your new home!
MAKING AN OFFER
Once you have found the property you want, we will write a purchase agreement. While much of the agreement is standard, there are a few areas that we can negotiate.
Good To Know
The Price
What you offer on a property depends on a number of factors including its condition, length of time on the market, buyer activity, and the urgency of the seller. All these data points will be provided by your agent and give you the best chance at securing your home at a price that makes sense.
THE MOVE-IN DATE
If you can be flexible on the possession date, the seller may be more apt to choose your offer over others.
ADDITIONAL PROPERTY
Often, the seller plans on leaving major appliances in the home; however, which items stay or go is often a matter of negotiation.
THE RESPONSE
Accept, Reject, Counteroffer?
By far the most common is the counteroffer. In these cases, my experience and negotiating skills become powerful in representing your best interests. When a counteroffer is presented, you and I will work together to review each specific area of it, making sure that we move forward with your goals in mind and ensuring that we negotiate the best possible price and terms on your behalf.
EARNEST MONEY
Earnest money may be need at the time of offer. This is typically 1% – 2% of the offer price. This check will ONLY be deposited if the offer is accepted. This amount will be applied to the down payment.
PREPARE
Closing day marks the end of your home-buying process and
the beginning of your new life! To make sure your closing goes
smoothly, you should bring the following:
- A certified check for closing costs and down payment.
- Proof of new homeowner’s insurance policy.
- Two forms of Photo IDs.
- Social Security numbers.
- Addresses for the past 10 years.
CLOSING
Transfer of title moves ownership of the property from the seller to you. The two events that make this happen are:
1. Delivery of the buyer’s funds
This is the check or wire funds provided by your lender in the amount of the loan.
2. Delivery of the deed
A deed is the document that transfers ownership of real estate.
The deed names the seller and buyer, gives a legal description of the property, and contains the notarized signatures of the seller and witnesses. At the end of closing, the deed will be taken and recorded at the county clerk’s office. It will be sent to you after processing.
