Everybody wants the home of their dreams, and you’ve been lucky enough to find it. Not only that, but an offer has been accepted, and now you’re waiting for the deal to finalize. Never one to count your chickens, it’s not until the keys are in your hand that you’ll be willing to sigh in relief. After all, strange things happen in the real estate business. But you can ease the homestead buying process with a few steps.
This is especially true of the closing process. The seller might not pull out altogether, yet they can take their time and add to the hassle. In fairness, it isn’t always their fault because the procedure is fraught with complications. The lender needs to sanction the funds; the buyer needs to have proof, and you want a surveyor to check the property.
As you can tell, it’s a minefield and one which often makes buyers come undone. The hope is that it goes smoothly, but this is never going to happen without being proactive. The great news is there are several things you can do to ensure there aren’t any hiccups, or that they aren’t big ones.
How To Ease The Homestead Buying Process
Get Pre-approved
Without a doubt, the biggest obstacle on the list is a mortgage. Because the cost of a house is huge, most people need help from a bank or a specialist mortgage broker such as Altrua Financial. Otherwise, there will be no mortgage. Then there will be no point in making a bid. The job isn’t over once you’ve applied, either, as it can take months to complete the application. But there are things you can do now to ease the homestead buying process.
Pre-approved loans cut out the waiting times because everything has been okayed beforehand. As long as the paperwork is in order, the bank won’t have to double check your finances and credit rating. Plus, it’s an excellent way to tailor your budget to a property of your choice. Once you know how much a lender is willing to hand out, you can bid for a home which is within the price range.
Lots of buyers are knocked back at the last stage due to a lack of funds. This makes the homestead buying process difficult. With a pre-approved deal, there is no need to fall into this category.
Prepare Documents
It seems like it takes an age to find documents and collate them. They are never where you think they are. If they are lost, then it means printing them off again or asking for a replacement. Although it’s a little thing, not having your tax number or wage statements will add to the time it takes to finalize the homestead buying process. The bank and seller won’t say yes until they have seen your sensitive information. Even the people on your side – attorney; accountant, etc. – will push back.
To prepare documents, you need to know which ones are important, or else it’s a guessing game. Allied Irish Banks (AIB) has a checklist for anybody who needs inspiration. As a rule, bank statements, three months’ worth of bills and proof of earnings are at the top of the list. Also, a passport or driver’s license is a savvy idea as they’ll want to confirm your identity.
Make sure you tell the realtor that the lender will be getting in touch to go over the particulars too. If they are unprepared, then this will add another difficulty to the homestead buying process..
Pay The Closing Costs
“Okay Mr. and Mrs. Smith, everything is in order. So, before we give you the keys, we’ll need the small matter of $3,000.”
“Erm, excuse me, did you say $3,000?!”
It’s incredible how many buyers are unprepared for this interaction at the end of the homestead buying process. Once the deposit is paid and the realtor has their cut, it’s tempting to think there is nothing else left fees-wise. In reality, Zillow reckons the average homeowner pays up to three grand in closing costs. This, although, depends on the value of the property.
The company itself has a guide on everything related, but the fees range from property taxes to an underwriting fee. Of course, the majority of people don’t have a cool couple of grand under their mattress in case of a real estate emergency. Therefore, the surprise can put the purchase in jeopardy. Always research what costs are going to pop up at the end, and make sure you have the money. Sellers and lenders won’t budge until the buyer coughs up the cash.
Haggle
Not over the price but the things you think the seller should do before finalizing the deal. For the most part, homeowners hate taking responsibility for the sale as they want it over and done and the money transferred into their account. But, it’s a two-way street because they expect a lot from you. So it’s important they do the same in return.
Repairs are the ultimate examples. They can complicate the homestead buying process. They’ll say you bought it how you saw it, yet you’ll argue they were disingenuous. If they knew, they should have made you aware of the fix as it might have impacted the sale. What you can do is thrash out a contract which says they are liable for certain repairs for a period. Essentially, it’s a warranty which covers you against anything ugly.
This process takes a lot of haggling, which is why it’s better to do it earlier. You don’t want to have to wait to get the keys yet because of a dispute over a window.
Call The Bank
Lenders are terrible for saying everything is going fine and then dropping a last-minute bombshell. Usually, all they need is a copy of a check they no longer have on file or something benign. Yet it’s annoying. After all, the original might not exist if you thought it wasn’t important any longer. The same goes for bank statements.
Don’t be afraid to contact the lender a couple of days before the completion date to ask if the deal is fine. Also, get in touch with the realtor and broker for confirmation. Doing these two simple actions can also ease the homestead buying process.
If there are delays, ask them what they are and the potential solutions.
As always, pushing through a property deal is about having the right paperwork and the money. Using these tips mentioned above you should be able to ease the homestead buying process considerably.
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