Roadmap for First-Time Homebuyers Success

Good afternoon, First-Time Homebuyers. Today I am going to attempt to release create that most rare of beings...the INFORMED BUYER. I am going take down the shroud of mystery and guide you through the maze of buying a home. I'm sure it goes without saying, but the first thing you should do is FIND A REALTOR!!! If you are in Texas, and specifically central Texas, and more precisely the Fort Hood Area (Killeen, Harker Heights, Nolanville, Copperas Cove, Kempner, Lampasas, and points west) you should be calling Richard Overall, REALTOR Extraordinaire (that would be me, for those of you that are unsure).

Following is a very abbreviated version of the steps involved:

PREQUALIFICATION is when the mortgage company reviews your credit and discusses with you your income and monthly obligations. Based on the credit, your income and your monthly obligations they will make a preliminary determination about the amount of house you can afford...how much payment you "qualify" for. This is preliminary and you will have to give them supporting income and employment documentation when you have the application appointment. The prequalification can be done over the phone. You can choose whatever lender you want but it is much easier if you use a local lender. There is no cost or obligation for a prequalification and the lender should be thrilled to do this for you.

BUYER'S REPRESENTATION is done when you decide that you want to work with me to help you find a home. There is no cost for the representation, but it allows me to give you advice and opinions to benefit you in your home purchase. I have attached an Information About Brokerage Services for you to review as required by the Texas Real Estate Commission.

HOME SELECTION will start once the prequalificatoin is done and Buyer Representation is established. We will need to know such things as how many bedrooms, bathrooms, garage required, fenced yard, location preference, etc. When we know this we can develop a search for you within our Multiple Listing Service and email you several homes that meet your criteria. You can review these homes online and let me know which ones you would like to view in person.

VIEWING HOMES is pretty self explanatory. This is the fun part. I take you to look at the home and you get to pick the one that is right for you.

NEGOTIATION STRATEGY DISCUSSION is when you and I sit down and talk about what you want to offer for the house/property. I will show you what other similar homes have sold for in the last few months and help you develop an offer strategy. This includes price, terms, concessions by Seller, repairs, posession, etc.

OFFER: Once we have an offer strategy, we will write the contract paperwork to submit to the seller's agent. When we submit that to them it is only an OFFER until it is accepted by the Seller. If it is not accepted the offer is considered rejected. At this point you can choose to resubmit an another offer or move on to another property. If the Sellers make any change at all, it is a counter-offer.

The offer becomes a CONTRACT once the Buyer and Seller have come to agreement on all terms and sign the paperwork. Once we have a contract the bulk of your job is over and mine is just beginning. I will send a copy of the contract to your lender and then it is time for your mortgage application appointment. This is usually done in person in the lenders office, but it can be done by email/phone. I will also send a copy of the contract to the title closing company along with your earnest money (more on that later).

The next thing you will have to do is have a HOME INSPECTION. While it is not required, it is absolutely recommended. Based on the home inspection there may be repair negotiations.

The only other thing you have to do before closing is shop for and apply for HOMEOWNERS INSURANCE. I will give you more direction on this when the time comes.

Now the big day comes (usually 21 to 45 days after we begin). It is the day of CLOSING. This is the day that you sign all of the documents required to purchase a home. The majority of these items are mortgage documents, but there are also several other documents required by other entities.

CONGRATULATIONS are in order...you have achieved the American dream. You are a homeowner with all the benefits and responsibilities that come with it.

All kidding aside, there truly is a whole lot more to it than this, but referring back to the first thing you should do...that's why you have a REALTOR. Now the good news...the REALTOR will work for you and in your best interest, but will not charge you for the service. Now the great part. If you close before December, 2009 and meet certain other criteria, you will be eligible for a tax credit up to $8,000.

So, what are you waiting for? You're familiar with the process, you've read the good news...and the great news. Pick up your phone, click on your mouse, fire up your keyboard, or come to the office. It doesn't matter how you do it, but contact your preferred REALTOR now. Fortunes are made in times like these. Don't look back with regret, look forward with confidence.

I should mention at this point that this is the process in Texas. The process may differ from state to state, but the jist is the same. Talk to your local real estate professional for the specifics for your market.