8 Tips for First Time Home Buyers: Tip #1 Part 2
Buying your first home is a complex and stressful event in
your life. For some, just the thought of it or the fear of the unknown is
enough to make your head explode! Wouldn't it be nice if someone could write a guide
for first time home buyers? You're in luck! The following 8 Tips for First Time
Homebuyers are going to lay out the transaction process, loan programs, credit
concerns, down payments, total costs and fees, as well as other information to
give you enough confidence to boldly consider owning your very own home!
Tip #1 Part 2
The last stage we discussed was the offer stage. You know,
you make an offer, have buyer's remorse, freak out after seeing all those
zero's! Once the offer is accepted is where great Realtors separate themselves
from the pack.
The Inspection Stage
As soon as your offer is submitted, you will have 10 days to
schedule an inspection with an inspector. Your Realtor may have some
suggestions of quality inspectors, but who you choose is up to you. Typically,
an inspection will cost anywhere between $350-$500, but will save you money in
the long run. Inspectors check out all the systems and structure such as
electrical, plumbing, foundation, roof, etc. and can notify you of any defects.
You can then go back to the seller and ask for some or all of these repairs
saving you TONS and you move in to a house knowing it won't fall in on you! You
can do an inspection yourself, but I would not personally recommend you do that
especially on your first home.
The Appraisal Stage
Although most lenders require you to pay the $400-$500
appraisal fee, the appraisal is not for you. It is for the bank to determine
the value of the property. As a lender, if they loan you $200,000 on a home
worth $150,000, they lose $50,000 as soon as they approve the loan! The appraiser
is not as extensive as an inspection, but they are required to ensure specific
conditions are met per the requirements of the loan itself. For example, if the
house you are interested has stairs over 36 inches in total height from the
ground, it is a requirement that a handrail be attached or the loan will not go
through. If the appraisal comes in low
or has requirements, you will have a few different options on how to proceed
but they can at times kill the deal.
The Closing Stage
All the major hurdles have been overcome to this point, now
you are just waiting. Sometimes things happen really fast and sometimes they
happen really slow! This is the time that the bank is finishing its paperwork
and the title company is working
on closing statements. You still are not
handed the keys even after you have signed. The transaction and title documents
need to be recorded with local government officials and then your bank will
fund the deal. Now you can go pick up the keys! Congratulations! If you have
any questions during this stage or any other, it is always best to contact your
Realtor. If they don't have the answer, they know someone who will and put you
in touch with them.
Stay tuned for Tip # 2!
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