Are you looking to purchase your very first home, maybe enhancing your current lifestyle of living, or simply on the pursuit for an investment opportunity? All these buying scenarios present exhilarating and joyful experiences for potential homeowners. Without proper representation from the right real estate professional, some obstacles can be overwhelming, making the process stressful. Buying a home can suddenly become discouraging and cause buyers to make impulsive decisions they may not be happy with down the road. That’s why The Guerrero Group put this home buyers guide together, so the buying process is easier to understand and you know the right questions to ask. The Guerrero Group will assure you of a seamless buying transaction by keeping you informed and helping with your calculated decisions along the way.
It’s clear with over 40 years of combined experience in corporate business setting’s, The Guerrero Group brings a world of strong, dynamic skills and insight to their real estate clients. They ultimately want to surpass your expectations and above all, maximize your real estate financial goals. May their dedicated “customer service” and “negotiating abilities” be a tool of leverage for your next real estate acquisition!
The Guerrero Group looks forward to helping you reach your real estate goals. Please consider these 8 steps in this home buyers guide to get started on your home investment journey:
Step 1: Establish Your Home Purchase Goals – we can help you ask the right questions!
- Your home purchase needs and wants
- Your financial capacity for a home purchase
- The home purchase process
- Your long-term investment strategy
- How to be an informed buyer
- Homeowner benefits – appreciation, equity, mortgage interest deductions, property tax deductions, capital gain exclusion and home equity loans
Step 2: Find Your Agent – WE RECOMMEND Chris & Devin of the “The Guerrero Group”, they will be your most valuable resource in your home investment journey.
- Educate you about your desired market
- Analyze your wants and needs
- Match homes with your criteria
- Coordinate the work of all relevant vendors involved in the purchase process
- Negotiate on your behalf
- Be diligent with necessary paperwork and deadlines
- Resolve any issues that may arise
Step 3: Secure Financing – The Guerrero Group can answer questions about obtaining pre-approval, and can assist you in obtaining a home loan qualification and the best available loan for your unique situation. We can help…..
- Choose a loan officer – An efficient, straightforward lender is key to a smooth finance process and, importantly, a timely closing. The Guerrero Group has established relationships with major banking institutions and we refer each client to the lenders best suited to accommodate their specific needs. See a list of our Preferred Lenders.
- Make a loan application and get pre-approved
- Determine your payment preference, and select a loan option
- Submit to the lender an accepted purchase offer contract
- Get an appraisal and title commitment
- Obtain funding at closing
Step 4: Find Your Home – The Guerrero Group will help you find your perfect home. We will analyze your needs and wants, and will have you consider some of the following:
- Your community/neighborhood preferences – Location to schools, parks, amenities
Location within the neighborhood/community - How much space do you need, and why?
- Which is more critical to you – location or size?
- Are you interested in a fixer-upper?
- How important is home value appreciation to you?
- Is neighborhood stability a priority to you?
- Are you interested in a condo?
- Which types of features & amenities do you want vs. need?
Step 5: Make An Offer – The Guerrero Group will provide you with detailed comparative market analyses of properties similar to your prospective home, so that you can make an intelligent offer. Are strong negotiating skills are utilized during this step to maximize your potential property value.
It is important to understand what you are obligated to pay for under the Purchase Agreement. We will review the Purchase Agreement before you write an offer, so that you have time for clarification on any questions you might have.
There are three main components of making an offer:
- Price: dollar amount you’re approved for, willing and able to pay
- Terms: financial and timing factors included in the offer
- Contingencies: clauses that let you out of the deal if the house has a problem that didn’t exist or which you weren’t aware of when you went under contract. They may specify any event that will need to take place in order for you to fulfill the contract.
Step 6: Perform Due Diligence
- Your primary concern is structural damage, which can come from water damage, shifting ground, or poor construction when the house was built.
- It is the inspector’s job to mark everything discovered no matter how large or small. If the inspection finds a big problem, a specialist may determine whether the worst-case scenario is true, and you might want to walk away from the purchase.
- Even if your home gets a good inspection report, you’ll still need to buy a homeowner’s insurance policy to protect against loss or damage to the property itself and against liability in case someone sustains an injury while on your property.
Step 7: Close – The Guerrero Group will guide your successful closing process and help you ensure success and simplicity each step of the way. Such information includes:
The fees associated with the buying (or selling) of a home are referred to as “closing costs.” Certain fees are automatically assigned to either the buyer or the seller; other costs are negotiable. Closing costs can vary depending on many factors such as purchase price, commission (typically paid by the seller), and the location.
Pre-closing Responsibilities:
- Staying in control of your credit and finances.
- Promptly return agent & lender correspondence and paperwork.
- Communicate with your agent weekly and verify with your lender that all the mortgage-funding steps are completed.
- Conduct a final walk-through of the home with your agent.
- Confirm with your agent, home insurance professional, and lender that you have the settlement statement, certified funds, and evidence of insurance lined up prior to closing.
Fees Included in the Closing Costs:
- The down payment
- Buyer’s portion of the escrow holder’s fee
- Loan fees: points/loan origination fee, application fee, credit report fee, tax service fee, flood certification fee
- Appraisal fee
- Prepaid interest on the loan
- Private Mortgage Insurance (PMI)
- Any impounds on the loan
- Mortgage broker’s fee
- Homeowner’s insurance
- Buyer’s portion of title insurance
- Inspection fees (if not paid for at the time of the inspection)
- Home warranty plan (home protection plan)
- Homeowner’s association transfer fee and fee to provide documents
- Homeowner’s association dues (prorated)
- Property taxes (prorated)
- Other fees as confirmed in the Purchase Agreement
- Miscellaneous fees (notary fees, messenger fees, etc.)
Step 8: Protect Your Investment – The Guerrero Group cares about your long-term home care, so we will introduce preferred home care vendors.
