Buyer's Checklist
This is the largest purchase and one of the biggest decisions of your life. It's easy to get carried with emotions and suddenly find yourself lost in a sea of confusion. Let your REALTOR® help guide you through the process. We understands the range of emotions that encompass a home purchase.
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Determine what type of home you want
Determine what type of home you're interested in (single-family, condo, or multi-family). Create a "wish-list" of what you want in an ideal home. Know what Key is best suited for you. Do you want to be close to schools? Close to work? What kind of waterways are you interested in?
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Make a checklist for your major tasks
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Develop a timeline for the major steps in the process
Ask your REALTOR® what to expect. Understanding the timeline will help keep you from possible frustrations.
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Give yourself time to gather research
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Get professionals involved and understand their roles
Do you understand the benefits of working with a REALTOR®?
Do you understand the potential risks you take if you don't work a REALTOR®?
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Check your credit and understand your financial status
Manage the financial part of the process early. Know how much debt you have, and get rid of as much as you can. Check your credit report. Correct any errors; save copies of correspondence between you and creditors. Ask your REALTOR® to help you determine how much home you can afford and how much of a home loan you're comfortable paying off.
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Consider preapproval if you're ready to buy
Consider preapproval, versus prequalification, if you're really ready to buy, and know the differences between the two.
Preapproval: Your lender does a thorough evaluation of your ability to pay for a home, and can provide you with written confirmation of the mortgage amount.
Prequalification: Your lender does a preliminary evaluation of your ability to pay for a home, along with an estimate of your mortgage amount.
Preapproval demonstrates a serious commitment on your part to the seller, and can be advantageous if you find yourself in a competitive bid process.
Build a Buyer's Tote Bag
Preparation is key. Keeping all your information together will make it easier along the way.
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Notepad and pen
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A camera for capturing neighborhoods, houses, rooms, yards and details (a MUST!)
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Pocket calculator
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Any research you may have gathered
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Phonebook and contact list
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Map of your target area or Key (Island)
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10 Things You Shouldn't Do Before Closing
The sellers accepted your offer to purchase. The home is officially under contract and you're counting down the days to closing. Don't worry. All will be well if you keep your cool and follow a few important guidelines.
You've just found out your credit is A+. So you've decided a new car would look fantastic in the driveway of your new home. If you're paying cash for the home go right ahead. But if you are depending on a mortgage to move in you'd best wait until after closing.
An increase in your debt/income ratio reduces the amount of monthly income available for your mortgage payment. The bank may decide you cannot afford the home.
Using cash for a purchase can be a problem too, since banks consider cash reserves when approving a loan. If you must make a major purchase before closing, talk to your loan officer before you do it.
Banks like to see a consistent job history. They aren't usually as nervous if you change jobs within the same field, but it's better to stay put until the keys to the house are in your hand.
It should go into a trust account. Some FSBO sellers don't understand that funds are a good faith deposit to be applied to your expenses at closing. I've heard many stories about sellers who spent the buyer's money prior to closing. When the transactions didn't take place for valid reasons--such as financing or repair problems, the buyers had to fight to retrieve their funds. Find an attorney who will hold the deposit for you until closing day.
There are many areas where that statement applies, but one of the most important involves the home inspection. Be realistic. No home is perfect, especially older homes. Don't let the seller's refusal to do a small repair kill the deal on a home you truly love. It's not at all unusual for new owners to take care of some things themselves.
On the other hand, don't fall so much in love with the house that you'll buy it no matter what needs to be done (unless you're absolutely sure you can handle it emotionally and financially). Decide what type of repairs you can realistically handle, then stick with the decision.
That sounds simple, but you'd be surprised how many people forget to apply for utility service at their new home. Call the companies involved as soon as you have a contract. Find out how many days lead time they need to turn on the new service, then get back with them when you have a firm closing date.
A no-brainer, right? But it's another often-forgotten task that buyers scramble to take care of at the last minute. Your lender will require an insurance binder for the new home at or prior to closing. Take care of it right away.
It's great to be neighborly and friendly, but don't get into too many long discussions with the sellers because personality conflicts often cloud judgments. It's possible to have sellers refuse to make even small repairs because something about the buyers turned them off.
And remember, this is their home. You're no doubt excited about moving in, and if you didn't like the house you wouldn't have offered to buy it. But you'll make changes--everyone does. A casual statement about "ripping up that ugly carpet" might be hurtful enough to keep the seller from negotiating with you for needed repairs.
Keep it to yourself.
At least not at first. There are some things you (and your agent) can do to correct the problem. Study your options.
If you're working with a REALTOR® it's the REALTOR'S® duty to help you make it to closing. Find out how your agent should be helping you.
Know what is expected of you and take care of it. For instance, a Certificate of Eligibility is required to move forward on a VA loan. That's something you must handle yourself. If the lender asks you for something, get it to them immediately.
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