Our team has over 40 years of experience in guiding families to homeownership and will be with you from start to finish.
Have you given careful consideration to the motivations driving your decision to purchase a home? It's more than just a transaction; it's a significant life decision that can shape your future. Understanding the deeper reasons behind your choice is essential, as it becomes the anchor that keeps you focused and motivated throughout the intricate journey of homeownership.
Owning a home is a pathway to financial stability, allowing equity growth over rent payments. It grants freedom to personalize, fostering stability and belonging. Beyond finances, it brings pride and a sense of community, enriching life. It is the American Dream that many families believe in.
Crafting a plan and understanding the steps to own your home can feel overwhelming. Our dedicated team is here to guide you, providing valuable insights into your opportunities and assisting in the creation of your personalized home buying plan. Let us help demystify the process and empower you on your journey to homeownership.
Introducing "Homeownership Unveiled: A First-Time Buyer's Guide" - an empowering resource designed to illuminate the path to your dream home. Embarking on the journey of homeownership is a monumental step, and in this comprehensive guide, we navigate the exciting terrain together.
Step One: Choosing Your Team sets the stage for success, recognizing that behind every triumphant homeowner stands a dedicated and expert support system. As you delve into the pages of this ebook, envision not just a transaction but a transformation – a journey where professionals become partners and dreams become realities. Welcome to a world where your aspirations take center stage, and your team propels you towards the keys of your future.
While numerous professionals stand ready to support you in your home purchase, it's your Real Estate Agent and Lender who take center stage, playing the most pivotal roles in shaping the trajectory of your success.
Expanding on the crucial first step of finding a Realtor is essential for first-time homebuyers. Beyond the decision to pursue homeownership, the process truly gains momentum when selecting the right Real Estate Agent. Begin by researching local agents with a strong track record in the specific market you're interested in. Look for testimonials, reviews, and referrals from friends or family who have had positive experiences. A vital aspect to consider is compatibility – find an agent who not only understands your vision but also communicates effectively. Furthermore, recognizing that most real estate agents have preferred lenders in their network is key. These preferred lenders often collaborate seamlessly with the agent, streamlining the financial aspects of your home purchase. While it's valuable for agents to have established partnerships, it's equally important for you to independently assess the lender's terms, rates, and suitability for your unique needs. This dual approach ensures that the collaboration between your chosen Realtor and lender aligns with your goals, setting a solid foundation for a successful home-buying journey.
When you're buying a home, having the right support makes all the difference. As your buyer broker, my job is to be your advocate, your guide, and your negotiator throughout the entire process.
Here’s how I’ll bring value to your homebuying journey:
I Represent Your Interests: Unlike the listing agent who represents the seller, I am solely focused on protecting your needs and ensuring you get the best possible outcome. My priority is to make sure you're fully informed and confident in every decision you make as the Purchase Contract is a legal document.
Expert Guidance: Navigating the real estate market can be tricky, especially if you're a first-time buyer. With my experience and market knowledge, I'll help you understand property values, trends, and what makes a smart investment. My goal is to help you make the best decision without fear of overpaying or missing opportunities.
Skilled Negotiation: Negotiation is one of the most important parts of buying a home. Whether it’s the purchase price, inspection repairs, or closing terms, I’ll be working hard to get you the best deal possible, always keeping your interests as the top priority.
Managing the Details: There are many moving parts in the homebuying process, from paperwork to inspections and deadlines. I’ll take care of those details so you can focus on finding your dream home, ensuring the process is smooth and stress-free for you.
Who Pays My Commission? Traditionally, in most cases, the seller pays my compensation through the listing broker or through negotiation. Therefore, you typically won’t have to worry about additional out-of-pocket costs. If the seller won’t cover the fee, you’ll be responsible as outlined in the Buyer Broker Agreement, but I will go over everything upfront so there are no surprises.
The Buyer Broker Agreement
To formalize our relationship, we’ll sign a Buyer Broker Agreement, which is required prior to previewing any homes. This document outlines the services I’ll provide and sets clear expectations, ensuring we are both committed to your home search. For full transparency, you will want to ensure that your lender provides you your cash to close requirements in the event you are required to pay the buyer-broker fees.
Your Buying Team
I work with a trusted network of professionals—from loan officers to home inspectors—who will guide you through every step of the homebuying process. My lender will ensure that you have a clear understanding of your responsibilities as well. My team and I will ensure that everything is handled with care, giving you peace of mind and preparing you for a successful and stressfree home purchase.
Your Long-Term Partner Even after you close on your home, I’ll continue to be your go-to resource for anything real estate-related. Whether it's home maintenance, renovations, or advice, I’m here to help. And when the time comes for your next move, I’ll be ready to assist you again.
Effectively navigating the lending side of your home purchase is crucial to ensuring your buying power harmonizes seamlessly with the home of your dreams. While your Real Estate Agent guides you toward your ideal home, it's the collaboration with your lender that turns aspirations into reality. Together, they tailor a lending strategy to your specific needs, bridging the gap between dream and achievement.
As you embark on this pivotal phase, knowledge becomes your ally. Essential questions for your lender include understanding the best loan options for your situation, gaining clarity on interest rates and terms, comprehending upfront costs and closing fees, exploring the benefits of pre-approval, and establishing realistic timelines for the loan approval process. Arming yourself with these insights ensures your lending strategy aligns with your homeownership goals, paving the way for a successful and satisfying journey.
Creating a solid buying plan is like laying down the tracks for a successful journey to your dream home. It's not just about figuring out what you can afford, but also understanding the financial game plan that leads to a triumphant purchase. Think of your dream team – the lender and the Real Estate Agent – as your guides through this exciting adventure. They're the ones who need to be on the same page, communicating clearly, because every offer you make needs to align with your loan. Imagine your plan as the script for a blockbuster movie, where every scene needs to match the plot to perfection. If your plan includes perks like seller concessions for closing costs, your offer must reflect that. It's like ensuring the hero gets the support needed to conquer challenges. Crafting a plan that fits your budget is crucial, but it's equally important that your real estate pro knows it inside out, translating it into a contract that speaks your language. This is the secret sauce for a successful home-buying journey – a plan that's not just understood but embraced by your real estate advocate. So, gear up, dream big, and let your plan be the compass that guides you to the home where your dreams unfold.
Understanding the significance of a capable team, the next step is choosing wisely. Picking a Real Estate Agent is like assembling a winning team for your home-buying journey. Research local agents with a strong track record, explore their experience, expertise, and tailored approaches. Seek referrals, and probe into their negotiation tactics, communication style, and availability. Streamline your selection with five key questions during interviews:
When it comes to securing financing for your home, the choice of a lender holds paramount importance. Think of it as assembling a winning team for your journey into homeownership. As you delve into research on local lenders, pay close attention to their track record, experience, and personalized financing methods. Make sure to investigate their communication style, negotiation tactics, and availability. Equally important is understanding their collaboration with your selected Real Estate Agent, recognizing the synergy that a united team brings to simplifying the home-buying process. In addition to these considerations, ensure that you are educated on the home-buying process and comprehend the financial aspects, allowing you to make informed decisions based on a solid understanding of the numbers. During your interviews with lenders, pose these essential questions to gain comprehensive insights into your potential financial partner. This is my Preferred Lender:
Now that your team is assembled, it's time to empower your lender in devising a buying strategy that aligns with your financial aspirations. They will engage in conversations, understanding your goals and gathering details about your income, debts, and savings. Based on this information, a personalized buying strategy will be crafted to suit your unique circumstances. Upon confirming that the plan meets your expectations, the next step involves obtaining pre-approval, providing you with the confidence to explore potential homes.
Your lender will diligently collect your financial records, including pay stubs, W2s, and bank statements. Submission of your file for processing ensures pre-approval, elevating your offers and fostering a confident home-shopping experience.
As you are ready to make an offer on a home, your lender should conduct a thorough review of current pricing, assess property taxes on prospective homes, ensuring your numbers align with both your loan and personal preferences. And when the offer is presented, making an additional call to the Listing Agent, highlighting your strength as a buyer, thereby enhancing the appeal of your offers to the seller.
Down Payment: Let's clear up a misconception about down payment money. You do not need 20% as a down payment to purchase a home! There are 100% financing programs, low down payment programs and even Down Payment Assistance programs. Below we will discuss some rules that you should be aware about in reference to your cash to close requirements.
Understanding Closing Expenses: Many buyers are unfamiliar with settlement charges, commonly referred to as closing costs. These fees encompass lending expenses, third-party fees like escrow and title insurance, and funds reserved for creating escrow accounts to cover future property taxes and insurance. The positive aspect is that sellers can contribute to pay for closing costs on your behalf. Depending on the type of loan you are obtaining will dictate how much they are allowed to pay. And, of course, these "seller concessions" are written into the purchase contract. As your lender and agent are well-versed in your buying plan, your offer should align seamlessly with your financial goals.
Cash to Close. Your loan officer will review with you how much cash you need to have to close. And all cash to close must be seasoned and verified. Federal regulations requires that all assets to purchase a home be allowable assets.
Once your loan is set for success with credit approval from underwriting, your loan officer should communicate the approved buying plan to your agent. If your plan includes seller-paid closing costs, it's crucial for your agent to be aware of this detail. Rest assured, only your buying strategy, not your personal information, will be shared with your agent. This collaboration is a key element of teamwork between your agent and loan officer. Ensuring that your loan buying strategy aligns with the offers your agent writes on your behalf is paramount. Your Real Estate Agent will ask essential questions to pinpoint homes that match your criteria. Provide them with all the necessary details, specifying the right area, size, and type of home you aim to purchase.
“Home is the nicest word there is.”
Your agent will add you to a individualized portal which will send automated emails to you of homes that come to market. You will preview the homes online and when one meets your goals, you will reach out to your agent and let them know. Your agent will schedule a time for you to view the property in person.
Fantastic news! Your offer has been accepted, aligning perfectly with your loan buying plan. It's time to embark on the exciting next step – the Home Inspection.
Before crafting your offer, your agent meticulously reviewed the Purchase Contract with you, and it's advisable to keep a copy for your records. The contract outlines the timeframe for inspecting the home, providing an opportunity for thorough due diligence to ensure the property meets your expectations.
Should any issues arise during inspection, your agent will skillfully document them in a Buyers Inspection Notice - Sellers Response (BINSR). If the seller agrees to your requests, repairs must be completed before the close of escrow, ensuring your dream home is in top condition. Remember, once escrow closes, the home is officially yours, making post-closing corrections challenging. Your agent might even negotiate an additional seller credit for your closing costs in lieu of repairs, particularly if the item falls under safety concerns, potentially influencing the appraisal report. Your home buying journey will now take the next step: Loan Verification.
With the accepted contract received from your real estate agent, your loan officer will elevate your pre-approved loan to an official purchase application. They'll incorporate the property address into the loan file, gather actual 3rd party fees from your escrow officer, and, within 3 days, present you with the upfront Loan Estimate. This estimate mirrors the Loan Purchase Analysis worksheets your loan officer has shared with you, offering a reliable projection of the cash required for closing. Concurrently, your loan officer can lock your interest rate. By staying attuned to market trends, they can provide valuable insights on the optimal timing for the rate lock. Once locked, the interest rate should extend to cover you until the close of escrow date, ensuring stability throughout the final stages of your home purchase.
The Appraisal: In your purchase contract, you usually have 10 days (or as negotiated) for your home inspection. This payment is independent of your loan and is for your due diligence. The inspection reveals the property's condition, facilitating negotiations with the seller through your agent to address any issues. Once satisfied, notify your loan officer to order the appraisal with an upfront, non-refundable fee. Stressing the importance of completing the inspection first is highlighted by this upfront fee.
Update Documentation. Now that your loan file is officially active, it's vital to ensure it stays current. If any of the financial documents you previously provided have expired, timely submission of updated information is crucial. Failing to provide this information promptly could potentially slow down the verification process, impacting the progression of your loan.
Homeowners Insurance: The next crucial step is selecting your insurance carrier for your homeowners insurance. Your lender can offer a short list of referrals, or you can opt for your current provider. Either way, it's essential to make a choice and accept their offer. Once accepted, inform your loan officer, and they will collect the necessary documents from your chosen insurance carrier. Your homeowners insurance coverage will commence on your close of escrow date and will be paid for at the close of escrow.
Title Insurance is a vital component of your home-buying journey, safeguarding both buyers and lenders from potential damages or financial losses resulting from a defective title. In simpler terms, it shields you from inheriting the seller's unpaid debts on the property after your close. Your loan officer, in the early stages of your loan process, should have clarified its significance. The home-buying process typically spans 30-45 days, encompassing the processing of your loan file, completion of appraisal reports, and the acquisition and updating of Title Insurance. If you have additional questions regarding Title Insurance, your can inquire with your escrow officer.
Preparing the Loan File for Final Approval. After updating and verifying all financial documents, ensuring the appraisal report aligns with the loan programs, and confirming a clear title report alongside a locked loan file, it's time to ready the loan file for submission for final approval. This stage may take up to 5 days. Once the underwriting gives the final approval, your loan file seamlessly transitions to the closing team.
Now that your loan has achieved the "clear-to-close" status, your loan file will be sent to the Closing Department. Here, the team will reconcile your final numbers with your Escrow Officer, and you will receive a document known as the Closing Disclosure. It's crucial to sign the Closing Disclosure promptly, as you will not be able to sign your loan documents for three business days , and your loan officer should thoroughly review it with you.
Understanding your final numbers, including when your first payment is due, is essential. The Consumer Financial Protection Bureau provides a sample Closing Disclosure with definitions. Familiarizing yourself with your final numbers ensures confidence at the closing table, marking the realization of your dream of homeownership.
Wire fraud is real. Be sure you validate with your escrow officer.
Your escrow officer will contact you with a time and date to sign your loan documents. They will also advise you of your cash to close requirements and they will instruct you how to deliver those funds. Be sure to follow their instructions carefully as they are there to protect your money.
Your loan documents are signed, your cash-to-close is in the escrow account, and the lender has funded your loan. Now, the question is: when do you get your keys? You officially become the legal owner of the home once the Deed of Trust, signed during your closing, is recorded with the County Recorder's Office. Your Escrow Officer, in coordination with your home-buying team, will inform you when this recording occurs. At that point, your agent can proudly hand over your keys, marking the moment you officially become the owner of your new home!
Two Months Out:
• Make your own timeline. Start planning out your move a couple of months ahead and create a list of things you need to get done.
• De-clutter. Have a garage sale or make a charitable donation.
• Coordinate with REALTOR® and Loan Officer on closing dates.
1.5 Months Out
• Get moving supplies: boxes, tape, packaging, markers, etc.
• Make travel plans. For far away moves, arrange airfare, hotels, car rental, etc.
• Create a folder for moving expenses - Research moving insurance options.
One Month Out
• Finish up home repairs.
• Start packing. Begin with things you use infrequently.
• Organize boxes and gather important records. Pack jewelry, valuables and medical or school documents separate.
• Update your records. Notify bank, insurance company, employer, subscription services and credit cards.
• Move confirmation. Get date, cost and insurance confirmation from movers. Read fine print.
• Send copies of school records to new school.
Research new medical care, plumbers, electricians, and other service providers in your new area.
• Time off. Ask for the right time off from work.
• Safe deposit box. Put valuables in a security box for moving.
• Have your vehicle serviced especially if you are moving long-distance.
• Make a kids’ kit. Coloring books, crayons and games are a great way to keep kids from boredom.
• Schedule sitters for kids and pets on moving day.
A Few Days Out
• Defrost, empty and clean refrigerator. Reconfirm movers’ arrival time and contact info.
• Pack your plants.
• Get cash for movers’ tip, food and other last-minute items.
• Drain water hoses on your washing machine and ice maker.
• Empty oil and gas from grills, heaters, lawn mowers, snow blowers and other tools.
• Final walk through. Check closets, drawers, cabinets, and garage. Turn off lights, lock windows and doors.
• Get connected. Make sure you have disconnected your current utilities that day after you move and ensure that your new utility services are connected that day before you move in. Make sure you’re signed up for curbside trash and recycling in your new city.
One Week Out
• If renting, set up a final walk through with landlord to get security deposit back. If you can’t be there for the walk through or are selling your home, take photos of your empty place to prove it’s in good condition and ready for the next residents.
• Secure all your important documents, jewelry, and other valuables to transport them yourself so they don’t get lost.
• Moving Day!
Pack a bag for the first night in your new home. Include multi-tool, change of clothes,
• Toiletries, medicine, plastic eating utensils, toys, bedding, charging cords and trash bags.
Congratulations!!! You did it!!
Cheryl Cowan, REALTOR License #SA624880000 CherylCowanREALTOR@gmail.com Mobile Direct/Text: 928-812-2181
Country Life Real Estate, LLC
Lic.# LC714378000
740 S. 8th Street
Show Low, AZ 85901
If you do choose to learn more, you expressly consent to receive calls and texts at the number you provide from Cheryl Cowan about home purchases related matters, but not as a condition of purchase. Message frequency varies. Message and data rates may apply. This consent applies even if you are on a corporate, state or national Do Not Call list.