7
Steps to buying a home
Step 1: Find
out how much you can afford to pay for a home
- How much will your payment be?
This is the price of the loan plus taxes plus insurance plus
association fees (if any)?
- How much can you borrow from a
lender? Talk to a lender. We can give you some general
guidelines, but better yet we will refer you to a lender.
- While you are looking for home
properties, it
would be a very good idea to get pre-approved for a loan. By being
approved for a mortgage, purchasing a home will be easier and
with more favorable terms.
Step 2: Get a good Montana real estate agent to
work for you
Home buying is important so
find an experienced Montana realtor.
- We have access to nearly all of the
Montana homes for sale through MLS and we are familiar with the
local market.
- We can give you an idea what the homes
are worth.
- The seller, almost always, pays for
the agents fee.
- We can help you find a good mortgage
company.
Step 3: Contact a Mortgage Company
Getting pre-approved for a loan is the
most important part of buying property for sale in Montana. We can help you choose a
mortgage company. The lender will run a good faith estimate of the
individual and total costs so you will have an idea of what to expect at
closing.
When you apply for a mortgage,
the following will be checked out: your credit history, employment
records, income, assets, debts, and an appraisal performed on the property
you want to purchase.
Step 4: Finding a home. Is it the right one?
Determine the area in
which you want to live. Consider the following when choosing a
location:
- How far is it from
work, shopping facilities, child care and schools?
- Are the properties in the area maintained and clean?
- Talk to a few neighbors to see what they think about the
neighborhood.
- Find out about crime in the area from your local police department.
-
Visit qualified real
estate for sale. Bring a pad of paper to write down likes and
dislikes. When looking at the house look at all the
features. Think about repairs that need to be done. Don't
be afraid to turn things on and off and open and close doors and
windows, etc.
Step 5: Make an offer
Remember that the seller
usually is asking more than what they will take. Decide on a maximum
price and make an offer for a lower price and see what happens, but beware
that there may be other offers being written as well.
Contingencies may be
included in the offer to help protect you. We can help you with
any concerns you may have.
-
Earnest money will be
sent along with the purchase agreement. This shows that you are
serious about buying a house. This money will be used towards your down
payment.
-
We will present your
offer to the sellers' agent.
-
The offer will either be accepted by the seller, rejected by the
seller, or you will get a counter offer from the seller.
A purchase agreement includes items such as:
- Names of both the buyers and sellers
- Description of the property
- Selling price, which is agreed upon by both
parties
- Amount of deposit or earnest money
- What items are included in the sale
of the home. For example, amount of land included, appliances to be left
behind, etc.)
- Date of closing and move-in date if
different
- Conditions that release either party
from the agreement. For example, if you were denied a loan
- Special conditions that must be met.
For example, repairs to the home, inspections, etc.
Step 6: Have the
residential home
inspected
Getting a good
inspection from a qualified inspector will give you the peace of mind that
there will be no surprises.
Step 7: Closing on your new home
Once your
mortgage has been approved, you are ready to close on your new home.
You should perform one more walk-through of the home before closing to make sure everything is as agreed upon.
You will need to do the following before closing:
- Have the utilities hooked up or transferred into
your name.
- Your lender will tell you the exact
amount you need for closing. The money due should be in the form of a certified check.
Closing
represents the transfer of title or ownership of the Montana property from the
seller to the buyer.
You are now ready to move into your new home!!!
