Buying A Home

Start The Process

Getting Ready To Buy

You’re ready to buy – or maybe you’re just ready to start seriously thinking about buying. There’s a lot you can do to prepare. With so much information available at your fingertips, you may already be doing a lot of your own research. Here are a few things to keep in mind while you get started.

Determine Your Price Range

The best place to start when buying a home is to find out how much house you can afford. I can direct you to a trusted loan officer that can assist you with determining how much of a down payment you can afford, along with a monthly payment you are comfortable with, and the type of loan that fits your needs best. Serious buyers who are highly motivated should go through the effort of getting pre-approved; not only will this allow you to focus your home search, but it will also position you as a serious buyer in the eyes of sellers when the time comes to make an offer.

Make a List & Prioritize

Imagine your ideal home and community. Now make a list of everything you envisioned. Then take that list and break it down from high to low priority. High-priority items are the things you cannot live without in your new home. Lower-priority items are those that are an added bonus, but not necessary. Your list can include things such as: number of bedrooms, need for a yard, style of home, and access to schools and shopping.

Tour Homes Online and In Person

Some people look at several homes before finding just the right one. And others find “the one” immediately. Thanks to the internet, you can streamline your search process significantly by checking out homes for sale online. And when you’re ready, simply contact me to schedule a private tour and create a personal checklist for each one to help determine which home best fits your needs.

The Buying Process

You’ve found the home you can see yourself living in, now what? There are several steps to the buying process you will go through before you can officially call it your own.

Negotiation

Whether you’re a buyer or a seller, negotiation is the key to getting the best deal. Negotiations can involve everything from settling on a sales price to concessions and financing. As experienced negotiator my job it is to represent your interests during the give and take of a real estate transaction.

Purchase and Sale Agreement

Once an offer on a property has been made by a buyer and accepted by the seller, they enter into a legal contract known as a Purchase and Sale Agreement. This document outlines the specific terms and conditions of the transaction and is acknowledged by both parties by the signing of the document.

Financing

You may already be pre-approved, but now that you’re closer to the actual purchase price, you’ll be working more in-depth with your lender on your final loan approval.

Your lender will work with you each step of the way to get your loan approved and closed in a timely manner.

Inspection

After a buyer and seller reach mutual acceptance on a property, a home inspector is hired to investigate every nook and cranny to determine if the home is in need of any repairs. An inspector will check items, such as the roof, basement, heating system, water heater, air-conditioning system, structure, plumbing, and electrical. Afterwards, buyers will have a chance to negotiate with the sellers to cover the costs of certain repairs or to ask for concessions.

Title Insurance

You will receive a full report detailing the property history for you and your lender to ensure there are no legal encumbrances between a new owner and the property being purchased.

Escrow

Once the offer is accepted and a closing date agreed upon, escrow allows the buyer and the seller to have an outside party ensure all parts of the contact are complete. As your agent I will coordinate the completion of all necessary forms to the escrow company and monitor the escrow process until the transaction is complete.

Closing the Sale

At closing, all the paperwork is signed by the buyer and seller, both parties pay any settlement fees and the documents are officially recorded. Prior to closing, you’ll receive a settlement statement outlining any fees which may apply to you. After closing is finalized and recorded, you receive the keys to your new home!

First Time Home Buyers

The prospect of buying your first home can
be both exhilarating and scary at the same
time. It’s likely the largest purchase you've
made in your lifetime—and also one of the
best long-term investments. But buying a
home is not a one-size-fits-all proposition.
Finding the right place in the perfect
neighborhood, and at a cost that’s within
your budget, is no small task. That’s where I
come in. My job is to help you navigate the
twists and turns of the buying process, so
that you end up with a house you’re proud
to call home.

How I Will Guide You

Explain the entire real estate process from start
to finish so there are no surprises

Provide a buyers consultation to explain the buying process and answer any preliminary questions.
Recommend a lender that can help you
determine how much you can afford and
pre-approve you for a home loan
Help you determine the types of homes and
neighborhoods that best fit your needs
Arrange tours of homes that meet your
search criteria
Provide you with detailed information about
homes you’re interested in
Determine the market value of homes you’re
interested in
Assist you in writing and negotiating a mutually accepted
purchase and sale agreement
Accompany you to the inspection
Coordinate necessary steps after inspection
Work with the escrow company to ensure all
needed documents are in order and completed
in a timely manner
Provide ongoing support and services even
after you’ve moved into your new home

Frequently Asked Questions

How does my offer get presented to the seller?

In today's electronic world, offers are sent via email to the seller's agent. I will call the agent to let them know it's coming and tell them a little bit about you and the details of your offer. Then I will follow up with the agent again to confirm receipt of your offer.

Does it cost me money to make an offer?

When you write the offer on the home you’ve chosen, you will be expected to include an earnest money deposit. The deposit is a sign of your good faith that you are seriously interested in buying the home.

Where does my earnest money go?

Once the buyer and seller have a mutually accepted offer, the earnest money is deposited into a trust account. That deposit becomes a credit to the buyer and becomes part of the purchase expense.

Is that all the money that’s involved?

Some lenders require the cost of the appraisal and credit report at the time of the loan application.

Can I lose my earnest money?

Real estate contracts are complicated legal transactions. This is another area where having a knowledgeable and professional agent is a necessity. Rarely does the buyer lose the earnest money. Most often, if the transaction falls apart, there are circumstances beyond the buyer’s control that cause it to happen. If the buyer willfully decides, however, that they no longer want to buy the house and has no legal reason for rescinding their offer, then the seller has the right to retain the earnest money.

What happens if I offer less than the asking price?

If you offer less money, the seller has three options.They can accept the lower offer, counter your offer or reject it completely. Remember that there could be another buyer who is also interested in the home you’ve chosen. If they happen to write an offer at the same time you do, the seller will have two offers to compare. There are usually many aspects of each offer to consider, but ultimately the seller will want to accept the best and most complete offer. In active real estate markets, homes often sell for their listed price. In hot markets, there may be many buyers vying for the same house, which sometimes drives the final sale price above the original listing price. As a real estate professional, I can help you plan your strategy, based on the current real estate market in our area.

What if I need to sell my home before I buy a new one?

To put yourself in the best negotiating position before you find the new home you want, hire a qualified real estate agent to help you put your home on the market. Once you write an offer on a new home,your offer will be “contingent” upon the sale of your home. A buyer in this position may not have the same negotiating power as one whose home has already sold (or at least has an accepted offer). The seller may be hesitant to accept your offer because there are
too many things that must happen before the sale
can close.

Buyer’s Terms

LOAN AMOUNT
The amount of the mortgage based on the purchase
price, minus the down payment.
DOWN PAYMENT
Cash that the buyer provides the lender as their
portion of the purchase price. The down payment
is considered the buyer’s equity (or cash investment)
in their home.
POINTS
Fees charged by the lender to offset their interest
rate, if it’s below the prevailing market rate. One point
equals one percentage point—so one point on a
$100,000 loan would be $1,000.
APPRAISAL FEE
The amount paid for the lender’s appraisal
of the property.
CREDIT REPORT FEE
The fee charged by the lender to obtain a credit
report on the buyer.
TITLE INSURANCE FEE
A one-time premium that a buyer pays for protection
against loss or damage in the event of an incorrect
search of public records or misinterpretation of
title. The title insurance policy also shows what
the property is subject to in terms of liens, taxes,
encumbrances, deed restrictions and easements.

ESCROW FEE
The amount a buyer pays the escrow company
or closing agent for preparing papers, accounting
for all funds and coordinating the information
between all parties involved in the transaction.
CLOSING COSTS
A general term for all the estimated charges associated
with the transfer of ownership of the property.
PREPAID INTEREST
The amount of interest due on the loan during the
time period between closing of escrow and the first
mortgage payment, due at the time of closing.
PITI
The estimated house payment, including principal,
interest, taxes and insurance.
PRINCIPAL AND INTEREST
The loan payment, consisting of the amount to be
applied against the balance of the loan, and the interest
payment, which is charged for interest on the loan.
TOTAL CASH REQUIRED
The total amount of cash the buyer will need,
including down payment and closing costs.
PREMIUM MORTGAGE INSURANCE (PMI)
Insurance for the lender, to cover potential losses
if the borrower defaults on the loan.

I am Ready To Help You Find Your Next Home

To Set Up an Appointment For A Buyers Consultation

Contact me today and I will be glad to assist you!

Cell 206 484 2222

Chris Borsheim