The 7 Steps of Buying a Home!

Step 1: Save some CASH!

Saving will help you with your down payment, part of your closing costs, as well as inspections, appraisals and other fees along the way. This can also help you with your future offers. It’s totally possible to find a home above the price range of what you were initially expecting to buy. If your lender gives you the okay to pay cash over the loan amount, you may want to consider this. Especially if you find yourself in a seller’s market. - Ask your lender about any financial questions you may have.

Step 2: Know your credit score!

Credit Karma is not what the lender will use to obtain your actual credit score. Credit Karma will not give you your actual score, so don’t put all your faith in it. This is why it is important to speak to a lender. Knowing your credit score can help give you an idea on where you will land with buying power. If your credit score is low, you can end up with a higher interest rate. If you have a higher credit score, there may be better opportunities for you such as a low interest rate. - If you need help raising your credit score, talk to a credit specialist for more information. Contact Moncada Realty Group and we can help point you in the right direction.

Step 3: Matchmaking!

Don't just find a lender, find THE RIGHT LENDER!

Not all lenders are created equal! So finding the right lender for you is crucial!

Some lenders may offer loans that maybe another does not, or maybe some lenders may be offering a promotional rate, while a different lender may offer the more convenient work hours for you. Your Realtor® could provide you with a list of lenders. The decision is completely yours.

Did you know that there are different types of lenders?

• *Mortgage brokers: These guys can offer the most opportunities for our clients. They can offer VA loans, USDA loans, FHA loans and down payment assistance programs. Among other things that can benefit our clients.

• Direct lenders (Typically banks & Credit unions): These lenders originate their own loans and typically only offer one type of loan product.

• Secondary market lenders such as Fannie Mae & Freddie Mac. Because your loan can get sold to another company more than once, you can find yourself making your first mortgage payment to another company and not the mortgage company you originally purchased the property with. 

UNTIL ALL PARTIES HAVE SIGNED AT CLOSING, you are still subject for a credit check, employment verification, etc.

Step 4: Get with your Realtor® to begin your home search!

Now that you know your price range, let’s start looking for THE ONE.

Make a list of your must haves and things you are also willing to compromise on, unless you can afford to purchase a fully customized home.

Moncada Realty Group can send out a tailored search just for you!

Step 5: Make an offer!

Once your Realtor® has helped you narrow down which home you love most, it is time to make a strong offer!

In a seller’s market you want to make sure your offer is as strong as it is going to get, in order to get your offer accepted the first time around. Many times you will not have a chance to revise your offer. So making ONE strong offer and appealing is definitely the way to go if you want to beat the competition. Moncada Realty Group can help you sniff out if there is any current competition!

Step 6: The In between!

From the time your offer is accepted and closed, your Realtor® will guide and assist you with the following:

• Help you with delivering Option & Earnest Money to the title company.

• Guide you to order any & all needed inspections

• Assist you with making the necessary negotiations

• You will pay for the appraisal & your lender will order on your behalf.

• Title company will order the survey, if necessary. Make sure to review it.

• Choose and order your Home Warranty

• Select a home insurance company

Finally: Your Realtor® will schedule a closing time according to the date that was agreed upon.

Step 7: Closing Day!

The final step! Prior to your closing appointment you will receive a Closing Disclosure –also known as a HUD or settlement statement– for review. It is very important to review and discuss any discrepancies with your Realtor. The CD will give you the amount to bring to the closing table. This will be sent out by the title company. Pick a closing time as early as possible so the likelihood of funding and getting the keys the same day is more favorable.

All buyers & sellers involved in the transaction will sign paperwork.

To finalize the transaction: Once everyone has signed & the title company has announced that we are closed & funded, you can now GET YOUR KEYS!

iPhone Tip: Since all documents will need to be submitted in PDF form, you can use the Notes app on your iPhone, to do so. 

Create a new note - open camera - select scan document - capture a clear image of the document/s you would like to scan - select “save”. Now that you have your scanned document, open it by selecting it, then go to the top right and select the share button and email it to lender.