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You’ve Got An Accepted Offer – Now What?!

So, you’ve gone to see your lender and been pre-qualified.  You’ve searched for weeks for the perfect home and you’ve found it.  You’ve chosen a savvy real estate agent and have negotiated the perfect offer and to your surprise, it’s been accepted!

Now what?

Well, first of all Congratulations!  Now get ready.  Things will start to move quickly.  Your agent will provide you with a list of critical dates that pertain to the contract and you will get to work.

Your lender will send you a list of required documents and it’s your job to get these documents/ requested information back to your lender in a timely manner.  Timely means quickly!  The longer it takes for you to get these items back to your lender the longer it takes to submit your loan to underwriting and the longer it takes to be approved for closing.

Escrow Deposit:

Get this to your Realtor or title company ASAP and be sure to keep a copy of the deposit for your records.  This deposit is refundable through the inspection period and will be applied to the final amount that you will need to bring to closing.

Inspection Period:

Typically the first 10-15 days from your date of acceptance are your inspection period.  This is your opportunity to inspect the property and not just on your own.  Your real estate agent will have a home inspector recommendation and you should work to get this scheduled as soon after the acceptance date as possible.  The home inspector will inspect every part of the home that he/ she has access to and will give you a nice little report including photos and descriptions to review.

This is also your opportunity to call in any contractors or additional inspectors for estimates on repairs that will need to be made.  All of this information is very important when determining if you will move forward with a purchase.  Do the numbers still work once you add in the costs of all the repairs?   If yes, proceed to the next step.

Insurance Shopping:  The Big 3!:

Start reaching out to your recommended insurance providers and getting quotes on the necessary insurances (click here for a list of my recommended insurance providers).  If you are financing a property in Florida you will likely be required to carry 3 different insurances:  flood insurance, windstorm insurance, and hazard insurance.  The bank will require you to prepay for the first year of insurances and then will escrow your insurances through out the year to pay the future years on your behalf.

Appraisal, Survey, & Elevation Certificate:

You will likely be required to have one of each.  The appraisal will tell you how much your home is worth in the current market..  The survey will be reviewed by the closing attorney to be sure there are no encroachments on your property and the elevation certificate will tell your insurance company how high off the ground the lowest point of your home is.  The appraisal, survey and elevation certificate will likely be ordered by the bank however you as the buyer will be responsible for the payment.  Generally, appraisals are pre-paid and the survey/ elevation certificate can likely be paid for at closing.

Taking care of each of these steps and communicating with your Realtor will get you to the closing table and on to the fun part and ultimate goal… homeownership!

Call, text, or email me (305-394-4073 or krystalthomasre@gmail.com) for additional information on how to purchase your first home.  I am a full time agent with Preferred Properties and ready to assist you in purchasing your Florida Keys home!

 

 

 

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Financing, Pre-Quals, and Approvals, Oh My!

One of the most important and intimidating steps in your home buying process is getting a pre-qualification from a lender.  In this blog post I’m going to break down the pre-qualification process and help set you up for success when approaching this step in your home buying journey in Key West.

Let’s start by defining “pre-qualification”.

Pre-qualification is a letter from a bank that states the loan type (conventional, FHA, VA, etc.) and amount you have been approved to borrow based on the financial picture you provide to the lender.  It does NOT include an analysis of your credit report/ score.

This is how you see what your buying power is and is a crucial step in being successful in your real estate search.   Many people over and under estimate their buying power, which is a total time waster for everyone involved.  You don’t want to spend time looking at $500K houses when your purchasing power is $350K and vice versa.

Below are four simple steps to help you take the leap into getting pre-qualified.  Side note:  just do it already!

  1. Make an appointment. Reach out to your bank and ask to meet with a loan officer.   You can also ask your real estate agent for recommendations as well, they always have preferred contacts and suggestions if you don’t know where to start.
  2. Know your number(ish). One misconception of the pre-qualification process is that you need to pull your credit report to be pre-qualified which is completely FALSE.  That’s right, many people think that you do but you don’t.  You should have an idea of what your credit score is though  to be sure your pre-qualification is as accurate as possible and I recommend using Credit Karma to find out.  Credit Karma is my go to app and website for credit checking and monitoring and it’s FREE!
  3. Get your sh*t together. No for real, get it together… get a copy of your most recent tax return, a recent pay stub, and a couple of months of bank statements together.  The more information you can provide the more accurate your pre-qualification will be.
  4. Take your pre-qualification letter and give (or email) it to your real estate agent.

Once you’ve given your agent your pre-qualification letter they will adjust your real estate search accordingly and you will be on your way to finding your dream home!

I am a full time buyers agent in Key West, Florida and am happy to help you in your real estate search.  Please contact me at 305-394-4073 or krystalthomasre@gmail.com and let’s talk real estate!