A step by step guide for home buyers

1. Purchasing a HomeA step by step guide for buyers By Mark E. Butler HRS Realty

3. BS Finance & Banking Hampton University 2009

4. Successful closed over $2 million in sales of residential, commercial, and multifamily properties throughout the St. Louis Metropolitan Area.314 479 5968 or markebutler@gmail.com

5. #2 Prequalification The first step in the home buying process is to become prequalified for a home loan by a reputable lender. To determine if you qualify your loan officer will take a look at your income, credit rating, savings, etc… If qualified, your loan officer will issue you a preapproval letter.

6. Make a list of what you are looking for in a home Number of Bedrooms Number of Bathrooms Location School District Price Range Style Give MARK a call and set an appointment to view the homes you are interested in QUICK TIP, be sure to bring a notepad and pen when viewing homes to make note of things you may forget later. #3 Searching for a Home

7. While viewing home make sure to observe the condition of…. The Roof The Foundation The Plumbing Stack The Electrical Box The Furnace & Water Heater The Condition of Surrounding Homes #3 Searching for a Home (Continued)

8. Once you have selected a home, you must make a formal offer using a sales contract. Using the sales contract you will communicate to the seller the following Purchase Price Earnest Money Closing Date Closing Location All sales contingencies Closing Costs, etc… #4 Contract Time

9. Along with the sales contract the following items need to be submitted to the seller Signed Lead Based Paint Disclosure Signed Sellers Disclosure (If necessary) Preapproval Letter Copy of Earnest Money Check FHA Loan Provisional Rider Any riders if applicable #4 Contract Time (continued)

10. Earnest money is cash that you deposit with the “escrow officer” (usually the title company where you would close) at the time the contract is accepted. This shows the seller that you are serious about purchasing the home, and that you will follow through on all obligations within the contract. If you do not follow through with your obligations in the contract you risk losing your earnest money. Earnest money is only accepted in certified funds (cashiers check or money order). The earnest moneyis credited toward the purchase price of the home. #5 Earnest Money

11. After you have submitted your offer the Seller with either ACCEPT,COUNTEROFFER, OR DECLINE your offer. If the seller accepts the negotiation is settled If the seller counters your offer you mayaccept, counteroffer, or decline their offer. #6 Contract Negotiation

12. If the sellers declines your offer you may Draft a new contract and submit it to the seller Move on to another property Negotiating an offer can be a very emotional situation for both parties. I believe thatit is fair to compare the home to similar houses that have recently sold nearby and make your initial offer based on those results. You should never intentionally low ball a seller. #6 Contract Negotiation (continued)

13. Buyers are usually given 10 to 15 days from the acceptance deadline to have inspections performed. Types of inspections Home Inspection Wood Destroying Insect Inspection (Termite) Municipal Inspection* Gas Appliance Inspection* Inspectors typically give the buyer a “inspection report” after the inspection has been completed, which provides detailed results of the inspection. When purchasing a home in “as-is condition” this step is not included. #7 Inspection Period

14. Generally, sellers are willing to perform repairs requested by the buyers prior to closing. To have repairs considered, buyers must submit the requested repairs on a statestandard form along with any inspection report received. Sellers can accept, counter, or decline repairs similar to price negotiation. When purchasing a home in “as-is condition”, this step is not included. #8 Repairs

15. If you plan on using a mortgage loan to purchase your home you will be required to have an appraisal performed on the home. An appraisal will provide the lender with information on how much the home is worth (appraised value).Lenders will only commit to loan fundsbased on the appraised value. #9 The Appraisal

16. Scheduled 48 hours prior to closing The purpose of a walkthrough to is be sure that repairs have been made and the property is in the same condition that is was when you initially viewed it. It would also be wise to have utilities (water, electric, gas, etc..) changed over within 48 hours of closing. #10 Final Walkthrough

17. You will need to bring the amount needed to close the loan in certified funds (cashiers check, money order) at closing. You will also need to bring state issued picture I.D. (Drivers License). Closing can usually last from 15 minutes to 1 ½ hours. After you sign the closing documents, the home is officially yours. After funding (exchange of funds from buyer to seller) you can move into you new home. Be aware thatin some cases funds will be exchanged the next business day after you close. This usually occurs if you close late in the day (after 3PM) and your are using out a mortgage loan as means of payment. Plan your move in date accordingly. #11 Closing