NAR 2024 Update / Buyer Brokerage Agreement

 Due to recent developments within the NAR, we are dedicated to assisting buyers in navigating the purchasing process while minimizing any adverse effects on our clients' ability to acquire their desired properties. Consequently, effective as of the summer of 2024, we are implementing new requirements. All prospective buyers will be asked to execute an exclusive buyers agreement and remit a retainer to our company's escrow account. This retainer, though non-refundable, will be credited towards the agreement and reimbursed should the seller pay a commission exceeding 2% to the buyer broker. Further details will be provided during scheduled consultations. 

We all dream of owning our own home. For first time home buyers or experienced buyers, finding and purchasing the right home is an exciting, yet anxiety filled experience. However, if have the proper guidance and you know what to expect during the home buying process you will be more relaxed and comfortable.

Having helped home buyers find their ideal home, the following list I prepared will help any buyer through all aspects of the home purchasing experience.

Know your budget

Before start looking for your new home, it is important to know how much you can afford. Expenses to consider include the down payment, monthly expenses, property taxes and any home insurance costs. These will all have to be considered before any  home-buying process begins, as they are usually included in your new monthly payment.

Since a person’s credit score determines their interest rate, knowing your score ahead of time can help you decide if now is a good time to buy or not. An individual’s debt-to-income ratio must also fall within acceptable limits of the home’s cost. Once you have determined these things, and if you feel that your budget has enough room to afford a new home, then it is time to begin the home-buying process!

The Loan Process: Get Pre-approved First

When you apply for a loan, be sure to get more than one loan quote to get the best interest rate and loan terms for your mortgage. Different banks and lenders will offer different loan origination fees and by shopping around you can often times save yourself a lot of money. A good loan officer will offer you many online resources and tools. I work with several companies that can help you find out the best rate and payments.

Before you lock your rate, be sure to check the daily rate with the rate your loan officer gives you to ensure you are getting the lowest rate possible. Interest rates will determine how much a mortgage will cost each month and come in fixed or adjustable terms.

Mortgage lengths can range from 15 years to 30 years with some loan providers now offering 40-year mortgages as well. The longer the repayment term, the lower the payments will be. However, the interest accrued will also be higher on a longer loan.

Find a Home

Once you have been pre-approved for a mortgage and you know what amount your bank or lender has approved you for, it is time to find your dream home.

Ensure that you make a list of needs and wants taking into consideration the amount of bedrooms you will require now and in the future, amenities, location and asking price.

Remember, the first home you visit might be beautiful, but you should visit many homes before making a final decision. If you are looking for your new home and want an knowledgeable Realtor by your side, feel free to call me anytime at 954 6128454

Making Your Offer

There is an art to making an offer on a home.

Typically, sellers place their home’s value a little higher than their desired price. A buyer will send in a lower bid, in a reasonable range, and the seller will counter with an offer somewhere in the middle.  Your Realtor will be watching for signs of problems in the home and will make suggestions to you regarding the offer. Listen to them closely as this is their business and they do it every day.

The average buyer only buys a home once every seven years or so. An experienced Realtor will be able to help you negotiate a lower price that sometimes includes concessions or closing costs. Their job is to protect you in the contract.

Home Inspection Process

Getting a home inspection is very important part of the home buying process. These inspections ensure that the home’s foundation, roof, air conditioners, electrical system, walls, plumbing and entryways are up to certain standards.

It is extremely important to protect yourself by getting a home inspection right away. You typically have 10-15 days from an accepted offer to get the home inspected. Many buyers have been saved from disaster by taking the time to spend the extra $300 – $500 to get a home inspection only to find out the house has major problems allowing them to back out of the contract before it is too late.

Insurance for Your Home

Lenders normally require that you insure your home. Home Insurance Policies cover the costs to fix any major damage that might occur to the home. The price of this insurance is dependent on a home’s age, location, value, and the insurance company you choose.

Be sure to call around and get several quotes. Agents will oftentimes be able to take your information over the phone and get back to you the same day with a quote. Once you choose a company to insure your new home, the cost of that policy is normally added into your closing costs and sent into an escrow account to be paid to the insurance company directly the first year.

The Closing Process

Before the home is legally transferred to you, the closing process must occur. During this phase, you will sign all of the mortgage documents, pay closing costs, and sign various other legal documents.

Once all of the papers are signed, the keys to your new home are yours! The only thing left to do is move into your humble abode.

Next Steps for First-time Home Buyers

The current real estate market offers great opportunities for first-time home buyers. Whether you are searching for the perfect starter home, townhouse or condominium, I would love to help you through the exciting experience of purchasing your first property.