COMPILED BY LAUREN CANTERBERRY
STEPS TO PURCHASE A HOME 1 MAKE A PLAN AND SAVE
Community Impact Newspaper sat down with Amber Montanio, founder and broker associate with Black Label Real Estate Advisors, to discuss the homebuying process in today’s market. Though the steps to purchasing a home have not changed, Montanio said the process of putting in oers has been accelerated by high demand and low supply. It is important that buyers are prepared to adjust their timelines or their goals for the property, Montanio said. She oers tips for rst-time homebuyers.
SOURCES: AMBER MONTANIO, WWW.ROCKETMORTGAGE.COM, U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENTCOMMUNITY IMPACT NEWSPAPER
GET PREAPPROVED AND FIND AN AGENT
Before buying a home, homebuyers should understand what they can aord and where they want to live. Here are a few things homebuyers should know:
Next, a buyer will need to research loan and nancing options and provide documentation such as proof of employment, pay stubs, bank statements, tax returns and credit history. Here are a few types of loans available:
How much are you willing and able to pay for a down payment and closing costs? Where will you look for a home? Are you willing to be exible?
What price range will you be able to aord based on your income, credit health and existing debt? What is your timeline?
CONVENTIONAL LOANS are backed by Fannie Mae or Freddie Mac and oer buyers the option to pay as little as 3% for a down payment. FHA LOANS are backed by the Federal Housing Administration and have lower credit score requirements. Buyers can pay as little as 3.5% in a down payment.
VA LOANS are loans for veterans, active- duty members of the armed forces and qualifying spouses. No down payment is required, and these loans are insured by the Department of Veterans Aairs. USDA LOANS help people in certain rural and suburban areas buy a home with 0% down provided they meet income eligibility rules.
What are the primary challenges facing home buyers in Texas right now?
The greatest issue facing buyers is a two-part problem: 1. Severe lack of inventory and an inux of out-of-state buyers is creating bidding wars on what little inventory is out there. 2. Due to the increased demand and out-of-state money coming in, many properties are going far above both asking price, and what they will appraise for, which means buyers either must be able to purchase using cash, or be prepared to pay additional money out of pocket to make up the dierence between sales price and appraised value. This eectively knocks many FHA and VA [loan] buyers out of contention.
Once a buyer has been preapproved by a lender, they can provide the preapproval letter to their real estate agent to help them nd homes within their budget.
What do buyers need to have prepared before beginning the home search?
A great agent will make sure that a buyer is properly prepared to have the best shot at being the winning oer. Oftentimes this means making sure that a buyer has not only spoken to a reputable lender, but has provided all of the documents ... to the lender to make sure there will be no snags during underwriting. There are also times when traditional mortgages are not the way to go in this market. A real expert will have multiple other programs and options ... [to give buyers] a competitive edge.
PUT IN AN OFFER
BEGIN THE SEARCH
After setting a budget and getting preapproved, buyers can begin to look for a home that ts their needs and wants. Here are several criteria to consider:
Buyers must submit oer letters to the seller in writing, including an earnest money deposit of 1%-2% of the oer price. The seller can accept, reject or counter the oer. If an oer is accepted, the home will be inspected and appraised.
SEAL THE DEAL
Once the inspection and appraisal are completed and any necessary repairs are made, buyers are allowed a nal walk-through. They will need to provide the following at closing:
Property taxes Home condition or need for repairs
Price Home size Local school district rankings
Copy of closing disclosure
Proof of funds for closing costs and down payment
How can buyers be most eective in nding and buying a home?
What are buyers’ options if their home search takes longer than anticipated?
Best advice for this is be patient, and be realistic, and be exible! Be patient if you have to go through multiple oers until you are able to get an accepted contract. Be realistic when making oers. In this market, you cannot go in with a low oer and expect to win. Also, you may not be able to get everything you want for the price you want to pay. ... Be exible with your expectations for the property and area.
The days of being able to take your time are gone. If a property comes on market on a Tuesday, you cannot wait until Saturday to see it; you need to see it as soon as humanly possible. Likewise, if a buyer looks at a property, they need to be prepared to act quickly if it ts their needs. Oftentimes properties are under contract on the same day or within 24 hours of listing.
Melissa is amazing to work with. She is passionate and works hard for her clients. I would recommend her to anyone looking to buy or sell real estate.
Melissa Laufer Realtor® 830-730-0599 firstname.lastname@example.org
I provide a service built on dedication, integrity, diligence and reliability.
NEW BRAUNFELS EDITION • JULY 2021
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