Home Buying Process

Discover A Few Benefits Of Partnering With BRSG

• Comprehensive Real Estate Expertise: We offer an all-in-one real estate solution at Brent Realty Services Group. Our licensed and well-educated team can handle your Loan Approval and Home Buying needs. As your mortgage loan expert professional and dedicated REALTOR®, we guide you through the complexities of securing the best loan options for your unique financial situation and navigating the intricate home-buying process. We are your advocates every step of the way.
• Results-Driven and Service-Oriented: Our approach is driven by results and centered on service. We provide step-by-step assistance, ensuring you know the best loan and property options for your new home or investment property. We aim to secure the most favorable pricing and terms tailored to your unique financial circumstances.

BRSG’s Detailed Steps To Buying A Home

Check Your Credit Report & Score

Before getting a mortgage or loan, you should always check your credit. According to the law, you can receive one free copy of your credit report per year. You can do this by visiting www.annualcreditreport.com. Scores range from approximately 300 to 850; generally, the higher your score, the better loan you’ll qualify for. Don’t forget to check your report for errors. If there are any, dispute them, and it may help your credit score. You can also check your credit score for free at www.creditkarma.com. BRSG can also provide you with a FREE Credit Recovery plan if needed.

Figure Out How Much You Can Afford

You can calculate how much you can afford by starting online. Several online mortgage calculators will help you calculate an affordable monthly mortgage payment. Remember to factor in the money you’ll need for a down payment, closing costs, fees (such as fees for an attorney, appraisal, inspection, etc.), and the costs of remodeling or furniture. Remember that you don’t always have to put down 20 percent as your parents once did. There are loans available with as little as 3 percent to no down payment. An experienced home loan expert can help you understand all your loan options, closing costs, and other fees.

Finding The Right Lender & REALTOR®

Exploring your options is crucial when finding the perfect mortgage lender for you and your financial needs. You can start by looking for recommendations from trusted friends and family members, and remember to cross-reference their suggestions with the Better Business Bureau for added peace of mind. It’s recommended that you contact at least three or four different mortgage lenders to make an informed decision. Feel free to ask many questions during these interactions, ensuring their responses align with your expectations.

Above all, please prioritize working with a mortgage professional who is more than welcome and provides expert guidance tailored to your unique financial circumstances. For a seamless experience that combines personalized loan options and a smooth approval process, consider partnering with a dedicated mortgage professional (like Ursula Brent from 413 Mortgage Group).

When you’ve found the perfect mortgage lender, it’s imperative to secure at least a pre-approval. While qualifications are only an estimate based on the information you gave to the lender, they aren’t set in stone. Conversely, a pre-approval provides a clearer picture of the loan amount you qualify for. To obtain this, the lender will review your credit and gather additional information. Yet, obtaining approval before embarking on your home search takes things a step further. This ensures a smoother sales (closing/escrow) process when you’re ready to make an offer. Moreover, your offer will stand out among others because your financing is assured.

Look For The Right Home

Make a list of must-haves. Starting with a well-defined list of must-have features is essential and helpful. Consider your specific needs, such as the number of bedrooms and bathrooms required, preferred living space, and kitchen size preferences. Consider your storage needs, too; are plenty of closets and cabinet space essential? If you have children or pets, consider prioritizing a spacious yard for them to enjoy.

Once you’ve made your list of must-haves, consider the following critical factors:

• Your lifestyle and desired neighborhood types.
• Quality and availability of schools in the area.
• Your daily commute time to and from work.
• Access to local shopping and amenities.

Safety concerns and the rate of home appreciation in the chosen area should also play a role in your decision-making process.

Make An Offer On The Home

Once you’ve found your dream home, it’s time to make an offer. Sellers and agents employ various pricing strategies when setting the list price. Analyzing recent market activity is key to constructing a fair and competitive offer. Some sellers may list their homes slightly higher, anticipating negotiations, while others price below market value to spark bidding wars. Typically, starting with an offer around five percent above or below the asking price is a good benchmark, depending on the current market conditions. Your real estate agent or REALTOR® (like Ursula Brent) can help you determine similar homes’ most recent sale prices.

Remember, making an offer is not the final step; sellers can counteroffer, initiating negotiations. Strive to find common ground to avoid extended back-and-forth exchanges. Once both parties agree on the offer price and other contractual terms, you’ll deposit earnest money and an option fee with an escrow officer at your chosen title company. This earnest money deposit signifies your commitment to the transaction and demonstrates good faith to the seller. The Option Fee provides an Option Period, allowing you to do your due diligence and various inspections.

Get The Right Mortgage For Your Situation

For experienced and first-time homebuyers, understanding the basics of mortgage options is crucial. There are three primary mortgage types are adjustable-rate, fixed-rate, and interest-only mortgages.

Adjustable-Rate Mortgages (ARMs): ARMs feature a fixed interest rate for a short initial period (usually one to seven years).  After the initial period, the interest rate can adjust annually based on market conditions (which can increase or decrease). This is ideal for those not planning long-term homeownership, seeking lower initial rates and monthly payments, or anticipating a shorter stay in the home.

Fixed-Rate Mortgages: Fixed-rate mortgages offer a stable interest rate and consistent monthly payments. Common terms include 15 and 30 years, with other options like 15, 20, or 25 years available. This loan type is great for individuals seeking predictability and planning for extended home ownership.

Interest-Only Mortgages: Interest-only mortgages allow payments covering only the interest portion for a specified period. Principal payments are optional, providing cash flow flexibility, particularly during tight budget periods. It’s a myth that interest-only mortgages prevent equity accumulation—equity can still grow through home appreciation.  Both fixed and adjustable-rate mortgages can have an interest-only payment feature. However, it’s crucial to discuss two critical aspects with your lender:

• Transition to Principal Payments: Determine when and how the increased monthly payment, including principal, will take effect.
• Balloon Payment: If applicable, understand any balloon payment terms at the end of the mortgage term.

Remember to consult with your loan officer (like Ursula Brent with 413 Mortgage Group) or banker to determine which mortgage is right for you and your unique financial situation so you can make an informed decision.

Close On Your Home

Prioritize a Home Inspection: Don’t skip a home inspection; it’s a valuable investment. It ensures the property’s structural integrity and overall condition.

Coordinate Closing Dates: Arranging a convenient closing date for both parties is possible but may require flexibility. Be prepared to consider factors like rental agreement expiration and the seller’s new home closing.

Transparent Cash to Close Expenses: Speak with your mortgage banker to understand closing expenses thoroughly. This typically includes the following (but is not limited to) your:

• Down Payment
• Appraisal Fees
• Attorney Fees
• Credit Report
• Homeowner Insurance Policy
• Inspection Fees
• Origination Fees
• Points (if used to lower your interest rate)
• Title Fees

Following these steps allows you to navigate the closing process smoothly and avoid surprises.

Move In!

Congratulations! You are now an official Homeowner!

You’ve got your mortgage and closed the deal, and now it’s time to move in!  Whether you use a mover depends on your financial situation and how much stuff you must move.  Either way, you’re done with the home-buying process!  Just start unpacking and start enjoying your first or new home!  If you need moving or cleaning referrals, please use Brent Realty Services Group’s Concierge Service Request Form.

Whether you are a First-Time Buyer or an experienced buyer, buying a home can be a pleasant and hassle-free experience if you’re prepared and know what to do and when. Choosing a knowledgeable, loyal, and experienced Real Estate Professional who can serve as both your Home Loan Lender and real estate agent (like Ursula Brent with Brent Realty Services Group and 413 Mortgage Group) is the key to helping you have an Exceptional and Smooth Home Buying Experience with consistent communication!