| Article: Buyers, It's Easy to Buy Direct From The Owner or Builder - Elizabeth G. Provo, Editor/Publisher |
Step 1: Know what price range you can afford. Ask a loan mortgage lender to pre-qualify or pre-approve you. Keep in mind that there are many mortgage programs out there other than conventional loans to help you, and rates and program offerings vary from one lending institution to another. Obtaining your loan directly from the lender can save you thousands on closing costs and extra interest charges over the life of the loan.
Step 2: Now that you know your price range, start looking. Call up the sellers of the homes you are interested in and schedule an appointment for a showing. Be courteous, if you change your mind about the visit be sure to call so the seller isn't waiting for you.
Step 3: Once you find the home you want, tell the seller that you are interested in buying the home by making an offer. Be sure to consider whether appliances, window coverings, etc. are included in the price. Discuss other points, such as when each of you would like to move and ideal closing dates. If you do not agree right away on price and terms, don't despair!! It is a good idea to allow some time to think it over, for both parties. Usually the seller will make a counter-offer to resume the negotiating process. It is important to take the ego out of the negotiation - this should, and can, be a win-win situation for both you and the seller.
Step 4: After you and the seller have agreed on price and terms, you should be prepared to bind your offer to purchase with a deposit. The deposit shows that your intent to purchase is serious. The deposit amount will depend on the purchase price and what the seller is willing to accept. The earnest money check should go into an escrow account. For your protection, this should be set up with a bank or lawyer.
Step 5: Be sure to specify in your contract any requirements that you have, such as the house passing a satisfactory housing inspection, or that your deposit be returned within a specified time if you do not qualify for financing (often the seller will request a pre-qualifying letter from the mortgage lender). A lawyer is a good resource for advice too, and can help you and the seller fine-tune additional details associated with the purchase. It is a good idea to have your lawyer review the Purchase and Sale Agreement before you sign!
Step 6: Complete the loan shopping process, if necessary. Then, once you've decided upon the mortgage lender, get the loan process started. New direct line mortgage mortgage services can give you approval in 24 hrs.
Step 7: Once the loan has been approved, notify the seller and your attorney, and finalize the closing date.
Step 8: Attend the closing to sign the paperwork. The closing is where the ownership is turned over to you.
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