Home Buying Process
Obtaining your Loan Pre-Approval
Not only is this the FIRST step in the home buying process, but it is by far the most IMPORTANT. It is crucial that you speak with a lender as soon as you decide that you are ready to buy a home. It is in your best interest to know well in advance what monthly payment you are comfortable with and how that translates into a price range. A great lender will walk you through the process and help you determine the best loan program for you.
Getting preapproved consists of speaking with a loan officer who will collect financial information from you to determine your debt-to-income ratio. This ratio determines the amount you are approved to purchase. The loan officer will pull your credit report and verify employment prior to preparing your preapproval letter. Once you are approved, the loan officer will send your preapproval letter to The Bonwell Tanner Group. We cannot write or submit an offer on a property without this documentation.
It is key to remember that you are relying on this Lender to be timely and accurate so that you can close your new home on time. Not all lenders can accomplish this and Bigger Names do not always mean better results! The Bonwell Tanner Group works with exceptional loan officers and would be more than happy to make a recommendation for you.
Searching for Homes
Once you are preapproved, The Bonwell Tanner Group will set up a time to meet with you for a Buyers Consultation. It is our goal to ensure that you are informed about all aspects of the home buying process so that you are confident and prepared for anything that may happen throughout the process. The more we can educate you upfront, the less stress you will feel during the process. In addition, this meeting will help us determine your needs and wants when it comes to selecting the homes you will be viewing.
Once we have an idea of the type and price of home you are interested in, we will begin sending you listings from the MLS or Multiple Listing Service. The Bonwell Tanner Group can show you any home that is Actively listed on the market in addition to New Construction Models or Spec Homes, For Sale By Owner homes, Bank Owned Properties and more. If you find a home that interest you online or driving by, let us know and we will be able to provide you with the most accurate data on the property.
Writing an Offer
Once you have determined that a home is perfect for you, it is time to write an offer! The first question most buyers ask is “what should I offer?” The answer to this question will change based on where the home is located, how long it has been on the market, and your motivation level.
We will complete a market analysis of the home to determine a fair purchase price for the property. Having viewed more than a thousand purchase agreements, we completely understand how to make your offer look as appealing as possible to the seller, while ensuring you are paying the right price. The
seller will likely counter your offer. The countering process can go back and forth numerous times until one party accepts.
After the purchase agreement has been accepted, we will then immediately order an inspection. The average cost of a home inspection is $400-450. The inspector will fully inspect the home and make necessary recommendations for needed repairs or areas to monitor throughout the home, both inside and out.
Once the formal inspection report is released to you, we will consult with you and make recommendations for how we are going to respond to the seller to correct any major defects with the home. The Inspection Response process is similar to the offer process. Each party can counter until an agreement is reached between buyer and seller. Once this step is negotiated, you are another step closer to the closing table!
After the Home Inspection is complete, your lender will order a third party appraisal on the home. This can take 10-14 days to complete. Your lender will receive a copy of the appraisal and advise you of the results. It is important to understand that if the home does not appraise for the purchase price that was agreed upon, it could cause the transaction to be terminated.
We understand that this is a concern for both buyers and sellers, however our extensive experience in selling residential real estate allows us to deal with an issues head on.
Most lenders will require you to pay for your appraisal at the time they order it. The average cost of an appraisal is $375-450.
In the days and/or weeks leading up to closing, Randie and Karen will work closely with your lender and the title company, to insure that everything is in order for a seamless closing. On the day of closing, we will be with you at the title company to answer any questions or concerns you have regarding your closing documents. You will sign all of your closing documents with the Seller and officially own the home!
Depending upon the terms negotiated in the purchase agreement, you will more than likely take possession of your new home immediately following closing. The Bonwell Tanner Group has a plethora of vendors they work with and would be more than happy to make recommendations if you need movers, painters, landscapers, contractors, etc. Randie and Karen will be there for you start to finish and beyond. Our goal is to be your preferred realtors and the ones you cannot help but recommend to everyone you know!