Home Buying Process

[flip_it_fast]

There is a whole process to buying a house and it is important that you understand at the very least, the basics.

Know what you can afford. Generally you can borrow two to three times your annual income. Also though that depends on other factors such as credit history, employment, savings and more.

Get a pre-approval before you house hunt. That makes things go smoother and gives you an idea of what you can get.

Closing costs and down payment need to be available.

Know what the mortgage includes. Typically that would be principle, interest, taxes and insurance.

Before making an offer, research comps in the area.

Don't allow your emotions to get the best of you.

[JaredfromIndiana]

Here is the document I send all of our potential first time home buyers:

It is much easier than you might think to buy a home. However, even if you buy 10 homes in your lifetime you will probably never become an expert. That is where we come in! We will guide and direct you throughout the entire process. You won’t have to worry about forgetting or missing something. Here are the basics:

PURCHASING A HOME

Meet with a reputable lender. This person will help you determine not only how much you can afford, but how much you should spend to keep your monthly payment within your comfort level. Your lender will get you pre-approved and provide you with a letter to be provided to the seller when you make an offer on a home.

Meet with a qualified REALTOR. We will discuss your wants and needs with you and answer all the questions that you may have about any of the homes out there, not just our listings. We will set you up on a property search and email the results so that you can immediately begin “looking” at the homes and decide which homes you would like to see in person.

Schedule an appointment with us to find your new home! This can take a day or it can take several months. We recommend seeing no more than 5-7 houses at a time. If you look at too many they will begin to run together and you will have a hard time remembering the first house you saw.

Make an offer. The Indiana purchase agreement is a 7 page document that we will complete with you. At the time of the offer, you will also need an earnest money check. This check is made out to the company that has the home listed and will be deposited into a separate account when we reach an agreement with the sellers. It is usually around 1% of the price offered and that money goes towards your down payment or closing costs.

After acceptance, we will provide our guidance on the next steps. These steps will include helping you order a home inspection, finalizing you’re financing, and instructing you on obtaining home owner’s insurance and calling utility companies.

CLOSING! This is the day that you get your keys! Your lender will tell you exactly how much to bring to closing. We will attend the closing with you at a title company. Don’t forget to bring your driver’s license!

That pretty much sums it up! We will be available to you day or night, and we work 7 days a week. We will be by your side all the way through the process!

Jared and Amanda Christiansen
The Christiansen Team
http://HousingFortWayne.com
260.704.0843

[Samuel_H]

You forget a step, Jared: negotiate the price aggressively. And if you don't feel comfortable doing it yourself, hire someone to do it for you. Plenty of firms out there that can assist you with this process.

[JaredfromIndiana]

Originally Posted by Samuel_H

You forget a step, Jared: negotiate the price aggressively. And if you don't feel comfortable doing it yourself, hire someone to do it for you. Plenty of firms out there that can assist you with this process.

Trust me, I never forget that step when representing my clients. I also advise to NOT try to buy on your own. My two cents.

[Santiago]

Hi...,Nice tips.This is very helpful post to buy/sell home...I will be must keep in mind your points..this is very useful post that will be referenced long into the future.Thanks for sharing this informative post....

[flippinout]

Jared, thanks as always for sharing your expert advice on buying a home.

We have always appreciated your input here at New House Flip and are so very glad that you take the time to share all your great information with us.

I look forward to seeing more of these posts from you and do really enjoy reading them and have on occassion used the information myself. Again, Jared, thank you so much for sharing with us.

[JaredfromIndiana]

Originally Posted by flippinout

Jared, thanks as always for sharing your expert advice on buying a home.

We have always appreciated your input here at New House Flip and are so very glad that you take the time to share all your great information with us.

I look forward to seeing more of these posts from you and do really enjoy reading them and have on occassion used the information myself. Again, Jared, thank you so much for sharing with us.

No problemo!! I miss you guys over here. We have been so crazy busy that I have neglected a few forums. I'll skim through here and see what I have missed.

[littleroc02us]

Originally Posted by JaredfromIndiana

Trust me, I never forget that step when representing my clients. I also advise to NOT try to buy on your own. My two cents.

Do you typically recommend buying from an auction or using a realtor to buy bank owned foreclosures? I have a realtor that has shown me some foreclosures. Also, what do you recommend for buying as far as financing. I will only be able to put 20% down and have liquid cash for repairs. Will that be competitive enough or will the cash buyers and the buyers who have leveraged other properties win out everytime? My plan is to offer 80% of the going rate/minus repairs.

[JaredfromIndiana]

Originally Posted by littleroc02us

Do you typically recommend buying from an auction or using a realtor to buy bank owned foreclosures? I have a realtor that has shown me some foreclosures. Also, what do you recommend for buying as far as financing. I will only be able to put 20% down and have liquid cash for repairs. Will that be competitive enough or will the cash buyers and the buyers who have leveraged other properties win out everytime? My plan is to offer 80% of the going rate/minus repairs.

Hey! Haven't been around in a while. Sorry about that.

I really think it depends on your market. Offering 80% - repairs won't get you anything in my market. Banks are getting smarter about their home pricing and most go for close to list price. What advice is your Realtor giving you?

[flippinout]

Hello there Jared. So glad to see you back here at New House Flip. Your answers to these questions are priceless, especially when I dont know the answers myself.

Thank you for taking the time to come to New House Flip Jared.