Are you thinking about buying your first home? Are you stuck in the “thinking” stage because the process seems way too daunting and you have no clue where to start? No worries, this is quite common. And the process can be a bit tricky if you aren’t prepared. But you can get the home of your dreams in a seamless and easy way if you hire a talented real estate agent who knows what to do and pick his or her brain on what needs to be done beforehand so you can get all of your ducks in a row. Lucky for you, I have a real estate agent at the ready and I already picked her brain for you. Sandra Schaffer, Listing and Buyers Agent at Century 21 Alliance Group in Valparaiso explained what happens in the process and what buyers need to do to make the experience as pleasant as possible. The first thing that Sandra suggests is getting in touch with a lender so that you know what your buying power is. You might find that you can afford more than you think and this will make your search easier.
“You should choose a lender that suits you,” Sandra advised. “Everyone is different, and different lenders have different personalities and ways that they do things so finding someone who fits you is important. I try to get to know my client and pick a lender that I think will best suit them if they can’t find one themselves. You have to be able to read your client to see who would fit them.” Then you have to pick your real estate agent. And like the lender, a real estate agent must fit the buyer. Feel free to contact a few and set up an interview to see if you will get the best experience with them.
“Find out what kind of agent he or she is and make your decision based on your preferences,” Sandra said. “Do you want an agent that works in a certain location? Do you want one that works as part of a team or do you prefer the one-on-one concept?”
Once you chose an agent to work with, begin thinking about what you MUST have in your home.
“The first thing that I do is find the top five things that my clients want in a home,” Sandra said. “These are deal breakers and if a home doesn’t have these five things then we move on to another. Does my client want a full basement? A master bathroom? Acreage? These are things to consider so you can find a home that you will be satisfied with.”
Now the actual searching begins. Sandra suggests beginning your search online for different listings that interest you on sites like Zillow.com, 21Alliance.com, Realtor.com, or Homebuyer.com. There are also apps that you can download for your smart phone so you can search from anywhere you wish. You can see Sandra’s current listings here!
“When my client finds the home they want we make an offer. I pull comps for similar houses from around the area to compare prices that others paid. I’ll use that as a bargaining tool so that my client won’t pay more than they need to. I then get property surveys and home inspections to protect the client,” Sandra said. "If the seller can't or won't fix defects in the home then my clients is no longer contractually obligated to buy the home and we can walk away."
On average it takes about 45 to 60 days, from the time a home is found to closing, to complete the transaction process of a first time home buyer. It may take some time to get into the home of your dreams, but it doesn't take long at all to decide whether it's "the one".
"Within eight seconds a client knows if they want to buy a home," Sandra said. "That’s probably the best feeling I get is when I see a client fall in love with a home. I would rather help a young client get their dream house than do anything else in the world. It’s the American Dream to own your own homw. I love being part of it; saying I helped with that."
Preparing for lenders is an important step in the home buying process. There will be a lot to know and get ready and Sandra explains that being prepared is paramount.
"They need to be aware that there is a lot that will be asked of them. I am here to help and all they have to do is ask me," Sandra said. "I’m on 24/7 so I'm always available to my clients."
What to have ready for your lender: the last two years of W2s, two months of bank statements, pay stubs from the last two months, and any amount of money that isn’t accounted for needs to be accounted for. Lenders will pull credit (a soft pull), check income ratio and as time progresses they will be ask for more documentation so being ready will save you lots of time.
And the very last step comes in a phone call. The Cleared Close phone call is made to the buyers and then they sign all the paperwork. 48 hours later the keys are in the client's hand.
There are a lot of people behind the scenes who make this whole process work. Secretaries, appraisers, inspectors, the listing agent, the listing agent's broker, lenders, insurance agent, and more. Though it can seem overwhelming, know that all of these people are here to help you and make sure that you and your home are going to be a good fit.