Buy Your New Home

Introduction

Buying a home is both exciting and complex journey, and it's important to be aware of all aspects of the process to avoid unnecessary time and expenses. Without the right information and resources, the process can feel overwhelming. My expertise lies in representing buyers in Austin and the surrounding areas, providing comprehensive, high-quality services that save you time and money, making your home-buying experience more enjoyable and less stressful.

For most people, purchasing a home is the largest investment they'll ever make. Whether you're interested in a starter home, your dream property, or an investment, you can benefit from my experience as a local market expert in the Austin metro area. I am committed to helping you make informed decisions throughout every step of your home-buying journey.

Recommended Buying Procedure

Step 1: Get pre-approved

Begin by obtaining either pre-approval or pre-qualification for a mortgage. This step involves evaluating your credit score, income, employment status, and assets to determine the loan amount you qualify for. It's essential to consider what mortgage payment you can realistically afford, regardless of the maximum loan amount offered. Setting personal limits on your monthly mortgage ensures financial comfort.

The type of loan you choose depends on factors such as your down payment, how long you plan to live in the home, your job prospects, your plans for future upgrades, and whether you want to escrow taxes and insurance. Since your home will be your largest investment, it's important to think carefully about these decisions. Understanding equity is also crucial, as it can save you significant money over time. If you have questions about equity, please feel free to ask me.

Step 2: Find a Home

Once you are pre-approved, you'll know the price range of homes you can afford. The next step is to choose a location with strong potential for property value appreciation. Appreciation refers to the increase in your property's value, which translates to real financial gains when you sell or refinance.

I can provide you with a private website that uses email notifications to alert you immediately when new homes become available. You can also set up your own custom searches on this site. Receiving instant notifications gives you the advantage of making early offers and avoiding multiple-offer scenarios, which often drive-up sale prices.

Your primary focus should be finding the right home for you and your family while enjoying the process. I will handle the details and provide a full range of services so you can concentrate on other important matters.

Step 3: Sign a Contract

After we've found the right home, we'll prepare an offer. I will inform you of recent sales in the neighborhood to ensure your offer is competitive and appropriate. I will then draft a written contract and deliver it to the seller. Negotiations may follow, including counter offers from the seller. We will work together to reach mutually agreeable terms.

It's important to remember that real estate contracts must be in writing to be legally binding; verbal agreements are not enforceable. If a verbal agreement is made and one party changes their mind, no legal recourse is available.

Most contracts include the following provisions:

The property's appraised value must be equal to or greater than the loan amount.
A period for inspection and negotiation of repairs, known as the Option Period in Texas.
A provision for a home warranty for the buyer.

Step 4: Finalize the Loan

Once both parties agree to the contract, it is sent to a title company and the buyer's lender. The lender will order an appraisal and begin the process of finalizing the loan, which typically starts after the Option Period ends.

Step 5: Inspections and Homeowners Insurance Quote

With the contract delivered, necessary inspections are scheduled. You will choose a home inspector, and the following inspections are recommended:

General inspection: While not mandatory, this inspection is highly recommended to identify both minor and major defects in the home.
Appraisal: Usually required by the lender, this inspection determines the property's market value, which must meet or exceed the approved loan amount.
Pest inspection: Not required but highly recommended to check for wood-destroying insects like termites and fungus.
Special inspections: Recommended if major construction issues are suspected.

During the Option Period, I will also request a homeowners insurance quote for the property. This ensures you secure appropriate coverage at a reasonable rate. If the insurance quote is not acceptable, you may withdraw from the contract and retain your earnest money.

Step 6: Post-Inspection

After inspections, if repairs are needed, I will negotiate with the seller for either repair work or a financial adjustment credited to you at closing. Regarding the appraisal, if the value meets lender requirements, the process proceeds smoothly. If there is a disagreement, we will seek supporting evidence or professional advice and negotiate between the seller and buyer as needed.

Step 7: Closing

The closing date is typically specified in the contract. Once all conditions are met, you will provide the required funds (via cashier's check or wire transfer), and all inspection items will be satisfied. The closing usually takes place at a title company or attorney's office, where both the buyer and seller sign all necessary documents. After the transaction is complete and funds are transferred, you will receive the keys to your new home. Congratulations!