BUYING YOUR HOME
Home buying most generally represents one’s single biggest investment. The buying process can be exciting, but at times also stressful. Whether you’re a seasoned home buyer or seeking to purchase your first home or investment property, there are many factors to consider. At Pedigree Real Estate, our goal is to guide you through professional consultation, transaction management and decision making in order to ensure your journey is as seamless as possible.
So, why partner with a real estate professional when purchasing a home?
- Pedigree Agents and Brokers have access and authority to draft and sign legal documents that have been created and approved by Arkansas attorneys.
- Pedigree Agents and Brokers have access to private national and local market sales data and statistics and are trained to evaluate and use this data to recommend appropriate offer amounts.
- Pedigree Agents and Brokers have access to the Multiple Listing Service (MLS), a national database of homes listed for sale in the marketplace; along with accessibility and tools to safely access those properties.
- Pedigree Agents and Brokers maintain respectful professional relationships with dependencies in the business; including but not limited to, lenders, title companies, inspectors, contractors, etc.) with the intent to provide as many resources as possible to navigate the process.
- Pedigree Agents and Brokers manage your purchase transaction from start to finish; including, writing a competitive contract, negotiating counter-offers, and ensuring adherence to critical contract deadlines. These include home inspection, inspection repair addendum(s), closing and possession dates, etc. in accordance with contract terms.
Buying in Ten Easy Steps
STEP 1 – Determine how much you can afford.
Make sure you have a clear understanding of your finances and consider what stable income you have. Think about what kind of property you are wanting to buy. Get a clear understanding of your assets and their value. Work on increasing your credit score. This can be a big factor. Gather income verification (last two W-2 forms, last two-years tax returns, last two pay stubs, last two months bank statements, etc.)
STEP 2 – Get pre-qualified and pre-approved.
Interview lenders and be prepared to submit and discuss your home buying goals and financial history. Ask lenders about loan types, interest rates, down payment requirements, credit score and implications and estimated closing costs. Formally apply for a loan and request a pre-approval letter based on your budget. Pre-approval letters are most often required when you submit an offer to purchase property.
STEP 3 – Partner with a real estate professional.
Pedigree Agents and Brokers provide and explain current market conditions, manage communication between lenders and escrow agents, expertly craft competitive offers and negotiate on your behalf to ensure you move quickly and efficiently through the process.
STEP 4 – Tour homes.
Pedigree Agents and Brokers assist with determining your search goals, scheduling and organizing showings, reviewing key details about property features compared to market sales statistics, identifying needed home repairs, researching HOA and utility costs, etc.
STEP 5 – Make an offer.
Pedigree Agents and Brokers have access and authority to draft and sign legal documents that have been created and approved by Arkansas attorneys. You will have support in navigating all aspects of the contract; including, but not limited to, establishing an offer price, documenting the loan type, determining the effectiveness of earnest money or non-refundable deposit, requesting a termite and home inspection, requesting a home warranty and repairs, and setting closing and possession dates.
STEP 6 – Initiate home inspection and repair(s) request.
Pedigree Agents and Brokers partner with you to select and schedule a professional, licensed home inspector. A home inspector thoroughly inspects the property’s physical features and systems; including, but not limited to, foundation, roof, HVAC system, water heater, electrical and plumbing. You will be provided with a formal report of the inspection results. Based on these findings, your agent will assist you with drafting a formal repair request addendum to the original contract.
STEP 7 – Partner with an escrow company.
Pedigree Agents and Brokers will assist you in selecting an escrow (or title) company. The primary role of a title company is to ensure the property you are contracted to purchase has a free and clear title. Title is the right to own, possess, use, control and dispose of property. When purchasing a home, you are actually buying the seller’s title. Before closing, a title search will be conducted for any problems that might prevent you from buying a clear title.
STEP 8 – Understand appraisal and obtain final loan commitment letter.
When financing a mortgage loan, most generally, a lender will require an appraisal. An appraisal is the process for establishing the estimated market value of a property. Although the primary goal is to justify the lender’s investment, the appraisal also protects you from over paying. Pedigree Agents and Brokers assist you in navigating any appraisal discrepancies as compared to the offer price in the original contract. Once a final contract is agreed upon, you will receive a commitment letter from the lender that stipulates the loan terms, annual percentage rate, monthly cost to repay the loan and any loan conditions prior to closing.
STEP 9 – Termite Policy & Homeowners Insurance.
Most lenders require a termite inspection and one-year termite policy. If the home has any structural damage, the lender will require the property to be treated and repaired. In addition, lenders require proof of homeowners insurance before issuing a mortgage. Payments towards a homeowners’ insurance policy are usually included in monthly mortgage payments. The title company manages the selection of these service providers and debits and credits are all calculated as part of the final closing/financial settlement statement.
STEP 10 – It’s Closing Day!
Prior to closing day, Pedigree Agents and Brokers will facilitate a final walkthrough of the home with you to ensure the home is in the same condition as when the original contract was dated. On closing day, bring a driver’s license and form of payment information. At the closing table, your escrow agent will discuss your final settlement/financial statement and provide you with the warranty deed and house keys. Maintain documents at minimum 5-7 years.