STEPS FOR BUYERS:
1.2 Has Your Income Grown? Home ownership can be a very good investment. As you pay down the principal part of your loan, you are building equity over time in addition to any market appreciation on your property.
1.3 Can You Afford To Buy? Experts recommend spending between 33-40% of your income on housing. The tax benefits of home ownership can provide a considerable advantage over renting.
2.1 Build your ‘Green File’. A green file contains all your important financial documents. You’ll need it to secure financing for your home. The typical green file should contain:
o Financial statements
o Bank accounts
o Credit card
o Auto loans
o Recent pay stubs
o Tax returns for two years
2.2 Check your credit rating. Your credit score will have a huge impact on what type of home you can buy, and at what price. Anything above 620 is considered good. A premium interest rate may mean a lower interest rate on your mortgage. Check your credit rating with a credit reporting agency such as Equifax , Experian or Trans Union.
2.3 Be Careful With Your Finances. Now is not a good time to make sudden career changes or large purchases. You want to approach home buying from a position of financial stability.
3.2 Choosing an agent. Here are some factors to consider when choosing a real estate agent:
o Look for a full-time agent who has experience completing transactions similar to yours.
o Interview a few agents: Are they familiar with the area you are interested in?
o Ask how much time the agent will have for you, and if they have a licensed assistant.
o Ask about their credentials and education: A good agent willcontinually strive to improve and gain knowledge of the latest real estate trends.
o Does the agent return your calls promptly? Time is money when attempting to buy a home.
o Ask for a list of homes they’ve sold or a list of references.
o Choose an agent who listens attentively to your needs and concerns. Pick an agent with whom you feel comfortable.
4.1 Take a Drive. Get to know the neighborhoods you are interested in. Drive around and get a feel for what it would be like to live in the area. Start getting a sense of the homes available in those neighborhoods.
4.2 Narrow your search. Select a few homes that interest you the most and have your real estate agent make appointments to visit them. Ask your real estate agent about the potential long term re-sale value of the homes you are considering.
4.3 Time to Buy. Once you’ve picked out the house you want to buy, your real estate agent can help you make an offer that the seller will accept. A good agent will investigate the potential costs of maintenance and repairs on the house.
5.2 How to Hold Title. You may wish to consult with an attorney or tax advisor on the best way to hold title. Different methods of holding title have different legal, estate and tax implications, especially when selling or upon death of the title holder.
5.3 Inspections. Once your offer is accepted by the seller, you’ll need to have professional inspectors evaluate your home’s major systems. Your agent may recommend other inspections, such as roof, chimney/fireplace, property boundary survey, well, septic, pool/spa, arborist or mold.
5.4 Appraisal and Lending. Keep in close communication with your lender, who will let you know when additional documents are needed to approve your loan application and fund your loan. The lender will often send an appraiser out to the property and you may pay a fee for this service. Appraisers are specialists in determining the value of properties, based on a combination of square footage measurements, building costs, and recent sales of comparable properties. When you are within two weeks of closing, double check with your lender to be sure the loan will go through smoothly and on time.
6.1 Final Inspection. A few days before you take over the property, we’ll do one last inspection to make sure everything is in order.
6.2 Utilities and Services. You will have to change the utilities and services of the house over to your name. Your real estate agent will assist in this process.
6.2 Closing Escrow. When your transaction is nearly completed, the title company will provide you with a “closing statement” that details all of the financial details of your home purchase. We will go over this with you to ensure its accuracy. At the last step in the buying process, the title company will have you sign the final documents, including loan documents (“deeds of trust”). When everything is complete, the title company will record the transaction for you at the County Assessor’s Office, and you will become the official new owner.
BUYERS SHOULD CONSIDER:
The higher your credit score is, the more likely a bank or lender will approve you for a higher loan amount.
Having a lender ready ensures that you can secure the property you want without the risk of losing it to another buyer.
After reviewing lender information and personal finances, you are ready to narrow down the price range that works best for your budget.
Finding a home
Once the initial loan and financing information has been completed, and you have a price range, we will begin shopping for your new home!
Rest assured that we are with you throughout every step of the purchase process. When you need a buying agent that specializes in Oahu homes for sale, hire Kailua Beach Realty to represent you!Sales Team, Kailua Beach RealtyContact Us