Home
Buyers
Journey of
Home Buyers
Whether you’re looking for your first home, your dream home or an investment property, Pugh Real Estate & Co is committed to providing you with the highest quality buyer service. When making the type of investment that buying a home requires, you deserve to have all the latest market information and the very best advice, both of which we can provide.
Below you will find a quick home buying guide showing the buying process and how to prepare, including tips and the documents you will need.
Three
Financing Tips
GET YOUR
CREDIT IN CHECK
Make sure you’re financially prepared for homeownership. Do you have a lot of debt? Plenty saved for a down payment? Ask yourself ” how much house can I afford” before you go further. Additionally, lenders look at your credit score to determine your eligibility for a mortgage loan. A good credit score of 640 or higher can get you pre-approved with lenders.
FIND THE
RIGHT LENDER
Once you have evaluated your credit and financial situation and you have a realistic budget, you can sit down with a lender that best suits you to evaluate your loan options. When you find a suitable loan that fits your needs, you can get a pre-approval letter. A pre-approval letter will estimate your borrowing power based on your financial information. A pre-approval can help strengthen your offer! Make sure you get a pre-approval letter before you start viewing homes.
BE
PREPARED
A lender will need information from you in order to get a pre-approval. Here are a few things to have ready for them:
- W-2 forms from the past two years
- Pay stubs from the past 30 days
- Federal tax returns from the past two years
- Proof of all source of income
- Recent bank statements
- Explanation of long term debt such as student loan or car loan
- ID and Social Security number
**If you are self employed, you may have to provide extra proof of financial stability.
The Home Buying
Process
Consultation
Hire a real estate professional to discuss your needs, wishes and wants in your new home.
Pre-Approval
This is a quick and necessary process that helps narrow down and determine how much you can afford.
Finding “THE ONE”
We will tailor listings based on your criteria. Most buyers look at approximately 10 properties before making an offer. If you have not found a home you are looking for- it’s highly recommended we sit back down to review/revise your criteria.
Making an offer
Now is the exciting time!! When you are ready to make an offer, we will walk you through the contract. It is important to write a fair offer.
- Write the offer
- Negotiate the offer
- Satisfy Conditions
Home Inspection
The immediate step after your offer is accepted is to schedule a home inspection. You will have a certain number of days to complete this inspection after the offer was accepted.
Appraisal, Title Search and Lender Letter
The title is the right to own, posses, use and control of the property. When purchasing a home you are buying a sellers title to the home. Before closing a title search is done to ensure there are no liens or problems that might prevent a clean and marketable title.
An appraisal, is an estimate of the property value. This will keep you for overpaying on a property. The lender will typically hire an appraiser and charge you the fee at closing.
Final commitment lender’s letter approves your home loan!! You will receive a letter and loan terms to your loan term to your mortgage agreement.
The CLOSING
The closing process finalizes the sale of your home.
A few things to bring to closing
- A valid government issued photo ID
- Cashier’s check payable for the amount due
- Any outstanding documents for the title company or loan officer
Closing Cost
Fees typically total 4%-9% of the total purchase price and can include:
- Escrow Fees
- Recording Fees
- Application and underwriting fees
- Special Improvement District (SID) and/or Limited or Local Improvement District Tax (LID) if applicable
- Appraisal Fees
- Local Transfer Tax
- Homeowners Insurance
- Homeowner Association Fees
Meet Your
Agent
Ready to make the most significant financial decision of your life?
Speak to a savvy real estate agent now!
READY, SET, MOVE
When your move in date is near, you’ll want to make sure to collect the proper information for the home to make your transition as smooth as possible.