Thinking Of Buying A New Home?
Congratulations! Buying a home may be the smartest investment you ever make.
The Home Buying Process
1. Find A Realtor
A Realtor can help you with every stage of the buying process. Using their industry knowledge, they help you find the right home, negotiate on your behalf when your ready to make an offer, and keep the process as stress free as possible. Choose an agent who demonstrates their knowledge about the market and who you feel comfortable with.
Mallina's Tip: Go ahead and ask for recommendations from your friends and family. If they've had a great experience with a Realtor it is likely you will as well.
2. Decide How Much You Can Afford
Talking with a lender will give you a much more accurate assessment, but you can get information first by getting a free credit report. By law, everyone is allowed one free credit report a year from the three national credit companies; Experian, TransUnion, and Equifax. Your credit score can give you an idea of what you have to work with when speaking to a lender. It's also a good idea to make a list of your monthly expenses and figure out how much you can spare a month.
Mallina's Tip: Use our Mortgage Calculator to calculate the monthly payments on a loan. Simply type in how much you want to spend and the desired interest rate & loan term.
3. Get Pre-Approval From A Lender
Getting a pre-approval letter from a lender can make your home shopping process a whole lot easier. With pre-approval you know your price range and your Realtor's search will be more efficient. This can also speed up the process when you find your perfect home and are ready to make an offer. Because you have a connection to a lender, you don't have to shop around for a loan - and potentially lose your fream home.
Mallina's Tip: Here are some lender recommendations. I know some great folks. David Vernon and Dean Hayes at Security First Financial Servieces Inc. in Burlington, WA specialize in educating clients on the variety of loans available and finding the best suited for each client. Liz Standow at Wells Fargo in Bellingham, WA (360)739-0757 has excellent customer service that goes the extra mile above and beyond. She has an excellent level of professionalism that I respect and recommend to my clients. Both lenders are brokerages so they can help you find what will serve your purposes.
4. Make An Offer
Congratulations! You've found the right home in the right price range in the right neighborhood. Your Realtor will now put in an offer that details the conditions of the sale. Your Realtor will also negotiate on your behalf if the seller decides to counter offer.
5. Get A Home Inspection
A home inspection is protection for you when buying a home. Being informed about any potential problems can save you money down the road. Problems recorded in the inspection report can also be used to negotiate with the seller.
Mallina's Tip: Here are some great local home inspectors. John Wagner with House to Home Inspections does a very thorough job with a very user friendly report for his clients. He invites his clients to attend a portion of the inspection towards the end so he can explain in detail his findings. He is located in Bellingham. I also recommend Rick Bunzel with Pacific Crest Inspections. He and his wife Buni are located in Anacortes and are very knowledgeable and have many years experience.
6. Completing The Transaction
Often referred to as closing, this is the final exchange where the deed of title is delivered to the buyer, the title is transferred, financing documents, title insurance policies are exchanged, and the agreed on costs are paid. The deed and mortgage are then delivered to the county recorder.
Mallina's Tip: Don't be afraid to ask any questions about the contracts you are signing. Your Realtor is always ready to explain - that real estate legal speak can be confusing!
7. Move In
Finally, the step you've all been waiting for!
