Buying Process

Which comes first; the house or the loan approval?

Shopping for homes is way more fun than finding your most recent tax returns, but the truth is that shopping for homes and getting approved for a mortgage go hand in hand. Why is a mortgage pre-approval so important?

• You may be able to afford more home than you think.
• A pre-approval tells you how much home you can buy, translating your desired monthly payment into a purchase price you want to stay within.
• You may qualify for down payment assistance or lending credits that can help you buy more home, or buy more easily.
• Most seller's require a pre-approval letter to be submitted with all purchase offers.

Buy New or Buy Resale?

New homes are typically priced very competitively with resale homes, and prices are negotiable. New homes can often can be partially customized or upgraded to each buyer's preferences and builder incentives often make buying a new home easy. What's the drawback? A new home might not be ready for a quick move in. If a new home sounds right for you, our Align Right agents are educated about all new construction communities in their marketplaces. Our agents are excited to Align you with the Right new home and negotiate you a great deal.

Finding the Right Home

Whether you browse homes online, shop virtually with 3D tours, or tour homes in person with COVID precautions in place, searching for a home should be a fun experience. Our agents are available to assist in every capacity; just share your wish list of home features and let our agents Align you with the matching home. Align with an agent (link to agent search) today to schedule your personalized in person or virtual home tours.

Negotiate a Great Deal

Once you choose a home, it's time to negotiate the right price and terms. While price is important, it isn't everything. Terms like closing cost incentives, deposits, inspection periods, repair requests, financing contingencies, and closing date can make or break a deal. Your Align Right agent will consult with you on your needs and desires and negotiate to get you the price and terms you need to Align you with the home you want.

Perform Inspections

A home inspection is always recommended to be conducted by an ASHI (American Society of Home Inspectors) certified home inspector. Insurance may require a 4-point inspection, and a wind mitigation report in addition to a standard inspection report. Depending on the age, location, and features of the home, other inspections may also be necessary. Most commonly these include inspections for ancillary systems such as septic or sewer, pool and/or spa equipment, fireplaces & chimneys, or other similar systems. Other common inspections include pest, mold, lead, radon, asbestos, soil analysis, ground stability, soil or water quality, structural foundation, or underground oil/gas tank inspection.

Get an Appraisal

A property appraisal assigns the property a value by comparing the property you wish to purchase to other recently sold similar properties that are in close proximity to the one being purchased. If you utilize a mortgage, the lender will almost always require an appraisal as lenders typically won't lend if a home doesn't appraise for the purchase price. Some mortgage loan types require an appraisal contingency that the buyer may cancel the purchase if the home doesn't appraise, while other mortgage loan types may allow the buyer to pay the difference between appraised value and the purchase price at their discretion. If you are paying cash then an appraisal isn't required, but it's still a good idea to get one.

Title Search & Insurance

Prior to paying for and taking ownership of a home, a title search should be conducted and a title insurance policy issued insuring there are no liens or encumbrances on the property that would prevent the clean transfer of title to a new owner. Depending on your state, title may be insured by a title agency or an attorney who is authorized to write title insurance policies.

Close on Your Home

It's almost time to move into your new home. At least 3 days prior to closing, Buyer's who are utilizing a mortgage must be provided a Closing Disclosure from their lender so the borrower has adequate time to review and understand all charges and obligations associated with the mortgage loan, including the balance due from the buyer at closing, if any. All buyers should be provided with a settlement statement prior to the closing detailing all costs associated with the purchase, regardless of mortgage utilization. The title agency or attorney that issues title insurance will typically work with all parties to the transaction to prepare the documents necessary to facilitate the transfer of title and initiate any mortgages. On or prior to the day of closing, the signatures of the involved parties must be notarized, and funds transferred. The title company or attorney facilitating closing will typically facilitate the transfer of funds from buyer or mortgage lender to seller and other interested parties, either by wire transfer or check. After all signing is complete and any mortgages are funded, you get the keys and get to move into your home.

Move In

After closing you get to move into your new home. Congratulations! Not only do you get to live in a home you own, you also get to build equity that can contribute to your future financial freedom. Have fun and take pride in personalizing your home for a lifetime of memories. It is our honor to have one of our Align Right Realty agents make your real estate dreams reality.