For Buyers

IMPORTANT STEPS FOR the HOME-BUYING PROCESS

1. FIND AN AGENT/REALTOR

Every REALTOR® is a real estate agent, but not every real estate agent is a REALTOR®. The National Association of REALTORS® defines a REALTOR® as a federally registered professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.

As a REALTOR®, I am there to guide you through the home buying and/or selling process. This is one of the biggest decisions of your life, and you need a skilled professional to represent you and your family throughout the entire process.

The ideal real estate agent has expertise and specializes in:

Relationships with local Mortgage Loan Officers: Mortgage Loan Officers can answer questions you may have about the pre-approval process and seeing how much home you can afford.

Get You in The Door: Your agent will set up showings, gather information pertaining to homes in your criteria, and talk with listing agents to get up-to-date status updates on specific homes.

Neighborhood/City Knowledge: Intuitive on specific neighborhoods and parts of town that you are considering. Including but not limited to schools, restaurants, shops, and places of worship.

Attentive/Organized: Your agent is knowledgeable on the required paperwork and processes from beginning to end.

Negotiations: Your agent will submit all offers to the seller’s agent on your behalf, as well as negotiate to get you the best deal possible.

2. FINANCIALS

How much can you afford? A general rule of thumb is your monthly mortgage payment should be roughly a third of your monthly income

Down Payment/Cash to close: A common misperception is that you must put down 20% to buy a home. That’s not always the case. There are different loan programs that you can put down as little as 3%. Your credit score is critical for the home-buying process. Credit scores can affect what kind of loan programs you are eligible for. I can connect you with great, local Mortgage Loan Officers that can further explain your options.

Get Pre-Approved: Being pre-approved shows the seller that you’re ready to buy and that you most likely have the funds to purchase the home should they accept your offer. This also helps give you an idea of what you can afford. The pre-approval does not guarantee a loan will be offered so you will want to be careful with your spending during this time. Don’t make any large purchases, change jobs, or add any new lines of credit during this time. Contact me today and I will recommend the best Nashville lenders to get you pre-approved!

3. Tour Homes

Take “inventory” of your home life/situation and decide what aspects of a new home is most important to you and your family. For example, do you need a big kitchen and entertaining space for family and friends, a large bonus room for the kids to have their play area, or a fenced in yard for the dogs?
When you are pre-approved and find the house that you and your family love, then we will go through the offer and negotiation phase.

Here are some home search tips I always tell my clients:

Take plenty of pictures
Focus on things you can’t change, such as the neighborhood, school zone, lot size, or size of bedrooms
Test things as you walk throughout the houses, such as opening and closing windows and doors, turning faucets on and off, and flushing toilets.

4. WRITE AN OFFER

To get started, I will run a Comparable Market Analysis report, or a “CMA” for short, to give you a guideline of what other similar sales are in the area over the last few months.
Generally, many sellers price a little on the higher side expecting to negotiate, so we will take that into consideration as well. The state of the market plays a factor, too.
Keep in mind that negotiations happen. The sellers have the option to accept, counter back, or decline our offer.
As a buyer, don’t be afraid to ask for what you want. Whether that be sales price, money toward your closing costs, upgraded appliances, or a paint allowance. You never know what they’re willing to do unless you ask.

5. INSPECTION PERIOD

Once under contract, I always recommend to buyers to get an inspection on the home. This gives you peace-of-mind that a licensed home inspector has gone through the entire home, from wall to wall and crawlspace to roof, and reported their findings.
Once you read through the inspection report, decide if there are any issues and/or concerns that you would want to negotiate with the seller. In the contract, there is a “Resolution Period”, where the buyer and seller agree to a certain number of days to agree to repair and replacement terms, if applicable.

6. APPRAISAL

All lenders require an appraisal of the home before finalizing the loan and giving you the “clear to close”. Home appraisers consider the neighborhood, housing market, age and condition of the home, etc.
A property title search will ensure that the sellers are truly the owners of the property, and any liens or judgments are disclosed.

7. LOAN APPROVAL

The loan is only fully complete after the lender approves the loan and goes through underwriting. You will receive a final approval letter after underwriting reviews your income, checking and savings accounts, credit report, and employment status.
Your lender will go further into detail with you, but Homeowners Insurance is NECESSARY for owning a home.

8. SCHEDULE THE MOVE

Line up the movers, sign up for your cable and/or internet, and transfer utilities into your name for closing day.

9. CLOSING DAY!

The final walk-thru is typically the morning of closing, ensuring all negotiated work has been completed.
The closing process requires a lot of paperwork. Be sure to bring your government-issued photo ID, cashier’s check (if not wired), and any other docs required by the title company or loan officer.
CONGRATS on the purchase of your new home!