How the Home Buying Process Works!

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STEP ONE:

Shop around for mortgage lenders, many can meet with you in person and review your loan application, explain what paperwork will be needed, and get you a pre approval within a few days. You will need to provide them your SSN for the credit check, check stubs from you employer, tax returns from the past 2 years (usually), proof of any other income or debts that might affect your monthly payment. The more you can provide, the sooner they will have you an approval answer!

If you haven't gotten in touch with a lender yet,  here's a link to fill out a quick and easy application to see if you qualify to buy: 

Apply for a home loan with OvFCU

Find a Realtor who will begin showing you homes within your price range and desired area. Your Realtor will have a key that will open EVERY home that you see on Realtor.com/Zillow/Other company sites. Because of access that Realtors have to the MLS, they are able to easily show you any home that you come across, no matter which Real Estate company has the listing.

*Be sure to always call YOUR agent when you see a property you like or want info about. Your agent works for you and will not receive their commission payment for your purchase if you end up calling another Agent to show the property to you and write up the offer. Don't worry, your agent will be happy to drive around and show you ALL of the properties that you like, because they will get compensated at the closing (usually the commission is paid by the home SELLER so you owe no fee to your Realtor)**

When locating a home, be sure to verify the school zone, flood zone info, home owner association info, and any other important details. You will also be given a document called a Property Disclosure that will explain EVERYTHING that the seller knows about the property. You will sign the disclosures when you present your offfer to purchase.

Your Real Estate Agent will help you decide on this part based on the other homes in the neighborhood that have sold, and also based on what you are comfortable paying. Make sure that your offer contains any contingencies or special conditions that you desire in the contract. This would include your need to qualify for a loan, repairs that you want the seller to complete prior to the close of escrow, as well as pest control inspections, home inspections, home warranty programs, and any other specific items. Remember, if your offer is accepted and thus becomes a binding contract, failure to complete the purchase could affect the return of your deposit.

You should thoroughly review the contract before signing it and make certain that you understand it. If there are portions of the document that you do not understand, you should seek appropriate professional advice. Make sure that the offer you sign does not contain any blank spaces that can be filled in after you signed it. Also, avoid giving cash as a deposit or down payment. Instead, always use a check, money order or cashier's check. This provides a permanent record of the money that you have deposited. See purchase contract and receipt for deposit for more information.

*If you are asking for the seller to pay any portion of your closing costs, be sure that is also listed in the offer*

There are a number of disclosures that you are entitled to receive during the course of your purchase. Two of the most important disclosures that you should receive in a residential purchase are as follows:

• Real Property Disclosure Statement - This disclosure is completed by the seller and covers the physical condition of the property and potential hazards or defects that may be associated with it. While the seller is principally responsible for the disclosures presented in this document, the agent is also responsible for conducting a visual inspection of the property and disclosing any readily observable defects detected in the process. This document also discloses any special taxes, assessments and other factors that may have a material effect on the value or desirability of the property.
• Agency Relationship Disclosure - Your real estate agent is required to provide you with a written disclosure stating whom he or she represents in the transaction. The agent may represent you as the buyer exclusively, or the seller exclusively, or be a dual agent representing both you and the seller. You should carefully review and understand this disclosure as it has a material effect on the level of responsibilities that your agent owes to you.

Depending on the location, age and other factors involved with the residential property that you are purchasing, 

• Financing Disclosures - - Various financing disclosures are also required in real estate transactions providing you with important details of your loan. In this regard, the two major disclosures required are Loan Estimate and the Closing Disclosure. The Loan Estimate will provide you with important details on the terms and conditions of credit including the amount financed, the finance charge, the annual percentage rate, as well as the estimated closing costs. The Closing Disclosure provides you with a detailed accounting of actual disbursements and closing costs upon the completion of your loan transaction. Learn about r disclosures before entering into any purchase contract.

The following are things that will be listed in your contract, be sure to do them in this order and within the time listed on your contract!

HOME INSPECTION: These are usually not required by a lender but they are HIGHLY RECOMMENDED because a licensed inspector can tell you if there are any major problems with the home you are buying. Here is a list of some local North Louisiana Inspectors:

Inspection Smith 318-338-7978

Doc's Home Inspections 318-614-4041

Southern Living Inspections 318-348-2663

Mike Burroughs 318-376-0482

Pest Inspectors in Monroe La:

American Exterminating 318-396-4166

Best Pest Control 318-396-6650

Terminex 318-427-6384

Septic Tank Health Inspections:

Ouachita Parish 318-361-7370 

Morehouse Parish 318-283-0806

After your inspection, you and your agent will notify the seller of any repairs needed or any problems you would like to address further. 

APPRAISAL: Once you are acceptable with your home inspection and ready to move forward with buying this home, you will contact your lender and tell them you area ready for an appraisal. This is usually paid in advance and will cost you around $400-600.00. The bank will request the appraisal and will notify you if there are any problems with the value. You will also receive a copy of the appraisal. This usually takes about a week. In the meantime you should be shopping around for homeowners insurance quotes. Your lender may also be doing this for you, so check in with them about this!

*Do NOT apply for any credit loans, furniture financing, auto purchases, etc while your loan is in process. Doing so could cause your loan to be denied, EVEN on the day before  closing! The lender will usually pull one last final report on your debts/credit/bank info right before you close on the loan. *

Once you have received your appraisal and a closing date, it is probably safe to start packing and planning to MOVE! A few days before closing, go ahead and do the following:

CALL THE UTILITY COMPANIES TO HAVE SERVICE TRANSFERRED

CONTACT THE LENDER TO BE SURE OF ANY AMOUNT NEEDED TO BRING TO CLOSING

BE SURE YOU HAVE TWO FORMS OF ID

SCHEDULE A DAY WITH YOUR AGENT TO DO A FINAL WALK THRU BEFORE YOU CLOSE

JUMP UP AND DOWN BECAUSE ITS ALMOST FINAL!!!

SHOW UP AT THE TITLE COMPANY TO SIGN PAPERS, GET KEYS, AND MOVE IN!!