Seven Steps to Your Dream Home Step 1 The Decision to Buy Deciding to buy your Dream Home, whether it's your first home, your move-up home, a relocation, or a retirement decision---the first step is the decision to buy. For some of you, it may be a decision to rent or buy. At our very first meeting with you, we meet to sign agency papers required by the state of Minnesota. Since Minnesota has strong consumer protection laws, we have several disclosures that need to be explained and signed. We also review the steps to buying a home and give you a buyer's packet to help you make the decisions you will be asked to make along the way. During this initial visit, we interview you to help us understand your specific needs and wants regarding your Dream Home. We also help you understand the current market trends and the personalities and amenities in the areas you are interested in living. We do the research! If you are first-time buyers, we suggest attending Home Buying 101 or reading Education Minnesota's Home Buying Manual: Your Path to Home Ownership. Step 2 The Pre-Approval Letter Now that you have decided to buy your Dream Home, you will need that pre-approval letter from your loan officer who will counsel and guide you to the most advantageous and appropriate mortgage for your particular needs. The letter is a necessary part of the offer presentation because it tells the seller that you are qualified to buy the home and have a lender who will guarantee your credentials! Your loan officer will also provide you with a Good Faith Estimate of the closing costs so that you know approximately how much money you need to bring to closing. At Burnet Home Loans, our loan officers guarantee that amount within $250 or they will pay the difference! Your loan officer will also provide you with information regarding the recurring costs: the monthly payment including principle, interest, homeowner's insurance, taxes, and possibly association fees. You will want to deduct some of these costs on your income taxes. As your Buyer's Agent, we will provide you with a copy of your HUD statement at closing and another again on February 1 for your taxes. Step 3 The Search Begins Once you have determined what you need and want and where you want to live, the search begins in earnest. We help our clients find their Dream Home by doing your homework for you!
Step 4 The Offer Once you have found your Dream Home, you are ready to make the offer. Once again we do your homework for you! We check out the sale prices of homes in the same neighborhood, we do a mini-CMA (Competitive Market Analysis) on your Dream Home to find out if it is priced fairly, and we check out the neighborhood for future roads, construction, changes in schools, etc. After we arrive at a fair price, we walk through every paragraph of the purchase agreement with you. You will be asked to make decisions concerning
As your Buyer's Agents, we prefer to make the offer in person to the sellers and their agent. This is extremely critical because we not only present the offer but we tell the sellers about you and your qualifications and the rationale behind the offer. We need to SELL our offer to the sellers! If there is a counter, we proceed by using collaborative negotiating to reach a win-win agreement! Step 5 The Home Inspection In the Twin Cities Metro area, home inspections are standard contingencies. In fact, an offer with a home inspection contingency is stronger than one without it. The most common home inspection contingency is a 3-1-1. This means that you have three days to complete the home inspection, the sellers have one day to respond, and you have one day to respond to the seller. Once any issues are resolved and the contingency is removed and if there are no other contingencies, the contract is legal and binding! We strongly recommend a home inspection using a home inspector of your choice. The Amercian Society of Home Inspectors has standards for home inspection services, so you may want to hire someone who's a member. You should go along on the inspection to learn about your new home and ask questions. Click here for a list of questions to ask your home inspector. Step 6 The Closing On or before closing day we will walk through your Dream Home with you and the sellers or the sellers' agent to make sure that everything is in the same condition as the day you finalized the purchase agreement. We will use a detailed check list to make sure everything is checked. This is a good time to ask the sellers questions about such things as routine maintenance, yard care, garbage service, and locations for water and gas valves. Long before this day, your title company has been working on your behalf. As your Buyer's Agents, we stay in close contact with the title company every step of the way. The title company is a neutral third party who holds the legal documents and funds on behalf of the buyer, the seller, and the mortgage company. What will you need to bring to the closing?
What will happen at closing?
You will be given the opportunity to purchase homeowner's title insurance. During closing, you will purchase title insurance for the lender, a policy that protects the outstanding mortgage balance for the lender for any unforeseen defects in the title. (Liens, delinquent water bills, fraud, unsigned documents, etc.) You may want to protect your own interest in the property as well by purchasing homeowner's title insurance. This protects your interest in the property (the equity in the property.) This insurance lasts for as long as you or your heirs own the property. You will also be given the opportunity to purchase a home warranty, a replacement value insurance that typically covers the mechanicals, roof, and appliances for one year. These and all other concerns pertinent to your specific situation will be reviewed long before closing day! As a full service company, we have our own title services through Burnet Title. Check out their web site for more detailed information regarding closings. Step 7 The Move Whether you are moving across country or only a few blocks away, moving takes planning. Our Concierge service can help you find a moving company, transfer utilities, and find home services in your new neighborhood. You will receive your very own Concierge card and number from Burnet Home Services. As your Buyer's Agents, we will work hard to make sure that your moving day is a smooth transition with no last minute surprises! And, we'll keep in touch and check in from time to time to see how you are doing. Time to enjoy your new home! Seven Common Home Buying Mistakes
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