What is the first step of the home buying process?
The very first step in the home buying process is to contact a Realtor/team who you’d like to partner with to help you through the process!
If you plan to finance, getting pre-approved for a mortgage is part two of the first step of the home buying process. Getting a pre-approval is generally a quick process and demonstrates that you are a serious buyer to both your Realtor and the person selling their home. A pre-approval may be required before you can view a home in person or put in an offer.
First, you need to know how much you are approved to purchase. Knowing how much home you can afford narrows down online home searching to suitable properties, no time is wasted considering homes that are not within your budget. Pre-approvals also help prevent disappointment caused by falling in love homes out of your range.
Your Lender will help show you a clear picture of what is financially required to buy a home. You’ll know how much money is required for the down payment and closing costs or if you qualify for any free grant down payment options. If you have credit concerns they can also help you put a plan together to increase your credit score.
Often times, a local lender will service you better than a large, online only bank.
The Prime Time Team has several preferred, local Lenders that can help walk you through this process.
I already own a home, can I sell and buy a home at the same time?
If you want to use the equity in your current home for the down payment on the next, it is possible. However, this is tricky, and all parties need to be on their game. We do simultaneour closings often, but all contingencies need to be completed in a timely fashion. You have to have constant communication between all parties, and organization is a must-have. We will help walk you through this process, but it’s important for you as a seller and buyer to always have contingency plans in case there are hiccups.
Why should I buy a home instead of renting one?
Oftentimes, it is more cost-efficient to buy a home rather than rent one. When you buy, you are investing in your own future. When you rent, you are helping your landlord to invest in his or her future. There also are financial perks like tax deductions and home equity that come along with owning a home. There are also low down payment and grant down payment options available.
I have my pre-qualification, what’s next?
Congratulations! This is an exciting time and we would be so honored for the opportunity to help you find your new home! We will set up a time to discuss your needs and learn more about what is important to you in your future home – we call it a ‘Strategy Session’.
We will then narrow down your criteria in your own personalized MLS home search. We also have access to off market opportunities that are not online. The great homes sell fast and we understand how important it is to be accessible and available for you. We will work closely with you to set up showings around your schedule, while also taking into consideration that we will be aligning 3 or 4+ schedules.
I found the perfect home, now what?
Once you’ve found the home that you want to make an offer on, timing is important. We use the best technology to get your purchase agreement together quickly, utilizing digital signatures that you can sign from your phone or computer.
We will take the time to run a detailed analysis to determine what the true market value is for the home you are interested in to ensure you are offering an appropriate price. We will use this data to put together an action plan for your offer price and terms. We help your offer stand out using a variety of strategies and techniques.
There is a lot that goes into the offer process and having an experienced Realtor on your side can help you get your dream home.
What is an earnest money deposit?
If you’re ready to make an offer on a particular home and also want to prove to the home seller that you’re serious about your offer, there’s a way to prove your commitment. This is where earnest money comes into the picture. When a buyer and seller enter into a contract, the seller takes the home off the market while the transaction moves through the entire process to closing.
In some cases, higher or lower earnest money may be acceptable. The higher the deposit, the more serious you will look to the seller. As a buyer, your deposit will be due in accordance to your agreed to terms of your contract. This deposit is paid to the listing brokerage in NYS and to the title company in Florida and is credited as a part of your down payment at closing.
If the purchase falls through due to a failed home inspection or any other contingencies listed in the contract (within the permitted timeframe) the buyer typically gets their earnest money back.
Should I get a home inspection?
Once your offer is accepted, most purchase agreements will give you a 7-10 day inspection period. This gives you time to do all of your due diligence. This includes hiring a home inspector, well inspection, radon inspection or any other specialty inspection.
Even though your excitement is at its highest, the home inspection is one of the most important aspects of the home buying process. The typical cost of an inspection can range from $500-$700 and up depending on the square footage and features of the home.
At The Prime Time Team, we have referrals for home inspectors who have availability within your time frame.
How quickly can I get the keys?
Typically 30-60 days in New York State. Florida can close in less that 30 days. This gives you enough time to do the investigation on the property and get your loan and appraisal completed.
In some cases, the closing may be as short as about 14 days. In others, it may take longer 60 days, especially if there is a home sale contingency or special loan product.
What is an appraisal?
The findings from an appraisal determine the amount a mortgage lender will let you borrow for the property. Appraisals must be conducted by a licensed, third-party appraiser who has no connection to the buyer, seller or lender. That way, all parties can be sure the determined market value is fair, unbiased and free of any influence from any party that could benefit. The lender usually orders the appraisal, but the borrower is the one who pays for it.
The appraisal is one of the things in a home purchase that can stall a transaction. One way to expedite getting the appraisal ordered is to make sure you turn in your proof of homeowners insurance to your lender as soon as possible after going under contract!
How much do I have to pay a Realtor to help me buy a house?
Home buyers pay little to no fees to their Realtor when buying a home. For most home sales, there are two real estate agents involved, one that represents the seller and another who represents the buyer. For most transactions the home sellers take care of the Realtor fees.
Navigating a real estate purchase is tricky business. The internet has made it possible to do a lot of the legwork yourself, but there’s no substitute for an experienced professional. An expert negotiator who knows the market can save you time, money and heartache by helping you make the right offer, communicating, and staying on top of all the details.
When are you available to me as a client?
Great question! At The Prime Time Team, we are typically available from about 9am – 7pm EST. For urgent matters like offers and negotiations or emergencies, we are of course available any time. We value family time and work life balance here, and find that this schedule allows for clients to be fully served and for us to fully recharge and enjoy life!
You’ve probably met many Realtors who claim to be “available 24/7”. We challenge that mindset. No one can be fully alert and on-call 24/7, 365. In our experience, we’ve found that agents who say this are either incredibly burnt-out or new and inexperienced and looking for clients any way they can.
How do I search for a home?
There are many home search platforms available to homebuyers online. At The Prime Time Team, we recommend using the MLS reports (contact us to sign up!) for the most direct, up to date data straight to your inbox.
You can also search right here on ThePrimeTimeTeam.com using our built in search feature!
If you do use a third party site, keep in mind that these sites sell your data and information. We recommend refraining from clicking on the “Get More Info” type buttons. Those will connect you with agents who pay for your information, and you will be bombarded with calls.
Do I need a Realtor when buying a brand new home?
Yes! Never visit the model homes without your Realtor. The Sales Consultants in the office represent and work for the builder AKA the seller. Builders require that you are with your Realtor upon your first visit to the model homes. If you go in alone on the first visit, the builder may refuse to let you be represented by another agent (like us!).
If you end up buying you may be unrepresented, meaning you will have no one on your side, reviewing the legal documents and looking out for your best interests. Having an experienced, third party Realtor on your side can actually help you save money.
Each builder has a slightly different process and protocol, but we would be happy to guide you through the process. Please call us before visiting any model homes.
What are your thoughts on discount agents?
If you have been searching for a home online you may have seen ads for “discount agents”, or agents that will pay you to use them. You’ll want to beware of any of these tactics to get your business. There is a lot that goes into a real estate transaction, a lot of room for error and there is no substitute for having an experienced Realtor on your side. Navigating these issues takes experience. Given enough years, an experienced agent will see just about every issue you can think of.
Ultimately, you have to decide which route is right for you and your family. Odds are going with a discount broker probably really won’t help you walk away with a better deal when all of the final numbers are negotiated and calculated. There are many reasons why traditional agents and brokers stick around through even the toughest real estate markets and new discount brokerages tend to pop up only when the market is hot.
“You get what you pay for” is a statement that reigns true in this department.
Thinking of Buying?
We hope these FAQ’s were helpful! If you’re interested in hiring The Prime Time Team to help you buy a home in Western New York or Southwest Florida, please fill out the form at the bottom of this page! We would love to be of service to you.