BUYER RESOURCES
I AM REAL ESTATE
1.) Pre-Approval
Getting a pre-approval is the first step in your home buying process. Your IAM agent will help recommend a mortgage lender trusted mortgage lender to best fit your needs.
A pre-approval letter is a very important first step in your home buying process; it will allow you to both understand how much you can afford, and your monthly mortgage payments. Most sellers will not consider your offer without a pre-approval letter as proof you can afford to purchase.
You will meet with a mortgage lender to review your income, credit score, work history, and available cash to close. Together, your and your lender will determine your pre-approval amount, and you will be issued a pre-approval letter.
A pre-qualification letter is based on the information you provided to the mortgage lender. In most cases your work history, credit history, and current work current will not actually be verified. This can be a helpful document but ultimately may not reveal all of the information needed. A pre-approval letter is based on verified credit, work history and current income. It will allow the lender and you to have a more accurate understanding of what you can afford and may ultimately save some bumps in the road later. A pre-approval letter is always recommended but not required.
2.) Homes Visit
Your IAM agent will help arrange to see the homes that best fit your home search criteria, and spark your interest.
Our 3-2-1 method best helps you narrow down and decide those features of your home to be most important to you. 3: Name three things you absolutely need in your home. (Example: need 3 bedrooms, need a fireplace, need a garage) 2: Name two towns, or areas you would like to purchase your home in. 1: Name one thing you would like to have in your home but is not an absolute requirement. Creating this list will help you both find what are the most important things to you, and will help you narrow down which homes will be the best to visit.
Look beyond the first layer of decor and staging. Consider this; what updates would need to be made? Are there any major expenses you would need to consider? Locate your commute, shopping centers, parks, schools, restaurants and other amenities.
The home buying process is different for everyone. Some of us look at over 30 houses and cannot find the one we want. Others find it on their first try. We highly recommend you give yourself the opportunity to look at a few in comparison to what you are looking for. But, ultimately following your heart will always lead to the most favorable results!
3.) Offer to purchase
Once you and your IAM agent have found the home you love we will collaborate with you to create and submit a strong, professional offer.
Most offers submitted will include your pre-approval letter, a relationship disclosure with your agent, your offer sheet, and a good faith deposit.
A good faith deposit is an initial deposit in the form of a check or money order you place alongside your offer letter. This deposit will go toward your closing cost.
A counteroffer occurs when the seller and you have not yet come to an agreement on purchasing terms and they reply to your offer with what terms they may like to see in the offer. This may include purchase price, contingency’s, fixtures to remain, etc.
4.) Execute Contract
The seller and listing agent will be in charge of creating the initial purchase contract. Your IAM agent and chosen attorney will use their knowledge and experience to review and request changes to best support your goals and legal protection.
Most contracts will include an array of contingencies, dates, a list of what conveys with the property, required inspections and potential mortgage requirements. Most will require you to hire an attorney to assist and protect you during these negotiations.
An earnest money deposit is the second, and final, deposit you will submit during your home buying process. It is a second deposit given at time of signing purchase and sales contract. This, like your good faith deposit, will go toward your closing cost.
5.) Inspection Period
Directly after receiving an accepted offer, you or your IAM agent will schedule your home inspection, with a licensed home inspector.
A home inspection is a limited examination of the condition of a home. Electrical panel, plumbing, foundations, and roofs are a few of the many things that can be inspected. It is always recommended that you hire a licensed home inspector.
Post Inspection request refers to the buyers ability to request repairs or changes to the house that may have shown up during the home inspection.
Traditionally a buyer will be given 10-14 days to complete all of their inspections, but it may be more or less depending on what is negotiated.
6.) Appraisal
A licensed appraiser will be hired to provide an estimated value of the home you intend to purchase on behalf of you and your mortgage lender.
An appraisal is a requirement of most, if not all, mortgage lenders in order to proceed with the purchase of the home. This gives the lender an accurate understanding of a home's value when lending.
More often than not, if your house is appraised above the sale price there will be no change to your contract. If your house is appraised below the sale price, you may need to renegotiate the purchase price of the home with the seller.
7.) Close
The best part, CLOSING! You have finally come to the end of your home buying process. Your IAM agent will work closely with your attorney and mortgage lender to help complete and close your transaction.
Most closings are about 30-60 from the offer accepted date.
Most often, those at the closing table include you, your attorney, your agent, and close family members you may want to help celebrate this achievement.
An up to date form of ID, and a certified bank check or money order with your cash to close the amount. Cash to close is an amount of money compiled of your downplay, fees, and invoices to help close out the transaction.
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