You are almost there! But there is still more to do before you cross that finish line.

Many times, after the inspection, issues will arise that result in another round of negotiations. You may request the seller does repair work or ask for a credit in lieu of repair work. Try to only bring your biggest issues to the forefront. Sellers tend to be less agreeable when you come to them with a laundry list of items and usually pick the smallest ones. 

Once final negotiations, the appraisal, and the title search have all been completed your loan will be submitted it to underwriting for final approval. Underwriting will do a final review to make sure all conditions are met and the loan is solid before approval. Expect loan approval to come close to closing. 

At least three days prior to closing, you should receive your Closing Disclosure. This is a disclosure your lender is required to provide to you showing the final loan terms and all the closing costs associated with your loan, as well as the final amount you will need to bring to closing. You should review this and direct any questions to the lender immediately. 

Now you are ready…It’s time to schedule that closing and become a homeowner!

Last week I mentioned that an inspection on your new home will cost you around $350 – $750 depending on the size of the home. Now I know you may be thinking, 

“Wow, that’s a lot of money. The home looked great when we toured it, and it was recently remodeled. I really don’t see a reason for spending a bunch of money for nothing.”

Well, let me stop you right there. There is NO perfect home. Let me say that again…There is NO perfect home. 

Even a brand new construction home is bound to have at least one mistake or issue because it is, after all, build by the human hand (and human make mistakes). 

But if that knowledge does not sway you, here are three reasons you need a home inspection:

1. Some of the most costly issues in homes cannot be seen. A busted sewer pipe, foundation issues, and termite damage can be difficult to spot but can cost you thousands of dollars to fix. 
2. You cannot put a price on safety. Safety issues can be easily overlooked and sometimes completely invisible to homebuyer. Radon gas, carbon monoxide, and mold can be extremely deadly if not detected and treated. 
3. Inspections allow you to make a wise decision. Whether it is avoiding a home that needs costly repairs, negotiating repairs with the seller, or ensuring you have the necessary funds for future repairs, an inspection can give you the information that will allow you to make an informed and wise decision about your new home. 

While you don’t get your money back on the inspection if the contract falls through, I always suggest getting an inspection on your new home.

Once you are under contract, you will begin working your way through the due diligence period and contingencies on the contract. There is A LOT going on during this time period, but you will have your real estate agent right by your side to walk you through the whole process. 

Here are a few of the things that will happen once you are under contract:

The Inspection. You have the opportunity to have someone come in and inspect the home for any issues. An inspection on your new home by a professional will cost you around $350 – $750 depending on the size of the home but is well worth it to avoid major issues down the road.

The Appraisal. Your Lender will want to ensure they are not lending you more money than the home is worth, so an appraisal is ordered to determine the market value of the home by an independent third-party. 

Title Search. A Title Company will search all records of the home to verify that the title is indeed transferrable and all liens and loans on the home are paid off during closing ensuring you do not have future issues. 

Home Insurance. Your lender is going to require that you maintain home insurance to protect their investment. You will want to secure a home insurance plan to commence on the closing date. Make sure you have applicable certificates that your lender may require (i.e. flood insurance). 

You have found THE ONE. Now how do you ensure you get that home?

Making an offer on a home may be one of the most daunting parts of real estate. But do not fear – your real estate agent will help you review recent comparable sales in the neighborhood, as well as other factors about the home and other potential offer to help you structure an offer and negotiate a price and contract you are happy with.

As you put your offer together, here are a few things to think about: 

Always Put Your Best Foot Forward. Everyone wants to get a deal on their new home, but in our current market, that may not be possible. You may be competing with multiple other offers. So make sure that you put your best offer forward. You may be thinking that you will start lower so you can go higher if need be, but you may not get that chance and lose out entirely. 

Cash Will Always Be More Attractive. If you have it, use it. If you are getting a loan to buy the home, offer to put more money down or offer a higher earnest deposit so the sellers know you are committed. 

Ask the Seller What They Want. While purchase price is huge when it comes to your offer, there may be other factors that are more important to the seller. If they are building a new home, they may prefer a later closing or a rent back. Make sure you ask what they are looking for and include it in your offer. 

Shorten Inspection Period and Offer a Quicker Close – unless the seller requests otherwise. A shorter inspection period will mean less time off the market should the contract fall through. A quicker close means, the seller gets their money sooner – and probably has to pay less on their loan, insurance, and utilities. 

Now it’s time to get you under contract!

Your head is now spinning from all the homes that you have toured. You are pretty sure that you have found the ONE. But now the gravity of the situation has now settled upon you, and you are starting to question everything. Don’t worry – this is completely normal. So how do you know this is truly the one?

Here are some pretty good “green flags”:

• It checks all the NEEDS boxes.
• You cannot stop thinking about it.
• You have already told your friends and family about it. 
• You compared every other home you see to this one. 
• You keep looking at all the photos over and over again. 
• You have already arranged all your furniture in it in your mind. 
• You have already talked about your first Christmas there. 
• You’ve driven by the house about 12 times since your showing. 

If you find yourself here, it is a pretty good indicator that you have found the one. To sum it up, no one else can tell you which house is the one, and when you know, you really do just know.

Now that you have your list, you are ready to start seeing some of these houses! 

Touring homes can be both exhilarating and scary. It is easy to let your emotions take control, so before you step foot in a house, keep these touring tips in mind. 

1. Before you head out for showings, review your needs and wants list. Keeping these things in mind will help you determine more quickly if this home will work for you.
2. Take your time during your showing. It’s okay to check out the kitchen more than once. This is a big decision. 
3. Take photos. It can be tough to remember all the details once you have left the showing. So take pictures to help jog your memory when you sit down to review them.
4. Do not let staging, decor, or paint colors distract you. All the staging and decor will be gone when you move in and paint colors can easily be changed. So do not let these things overshadow what really matters. 
5. Remember location, location, location. You can change paint colors and even knock down walls, but you cannot change the location of the home.

Woohoo! We have our wants and needs list, and now it is time to start seeing some homes!

Your real estate agent should set you up on an MLS search to help you find some homes, but I know you will probably want to do some searching of your own – everyone always does.

So here are a few tips to keep in mind as you look at homes to narrow down your list…

Keep your search filters broad. For instance, if you need four bedrooms so you can use the fourth one as an office, you may want to include three bedrooms in your search as well. Perhaps, there is a three bedroom home out there with a den that would work perfectly for your office. This to say, narrowing down your filter might make you miss the perfect house.

Be mindful of absolute filters. Make sure you are putting in a buffer when you enter your filters. A   search to include homes with 2,500+ square feet will not show you that home with 2,499 square feet.

Expand your geographic search. Opening up your search to include just a little bit further may give you more options. 

Don’t let pictures fool you. Keep in mind that photographs can be deceiving, so don’t base everything on what the pictures look like. Some agents use professional photographers who filter the MLS photos while other agents are snapping blurry photos on their iPhones. Review the entire listing before nixing it simple based on the photos. I’ve seen beautiful homes with really bad photos and vice versa. 

As you begin to pick out homes to tour, your agent will set up showings to see them.