STEP 1: DECIDING TO BUY A HOME
Congratulations on making one of the biggest decisions you will make in your life. The Bazinet Realty Team is standing by to assist you in finding the right home, answer any questions & to also assist you in the home buying process, making it as smooth & easy as possible.
STEP 2: INTERVIEW & HIRE YOUR REALTOR®
The Bazinet Team of professional real estate agents is here to assist you from beginning to end and of course beyond the closing of your home. We start with suggesting a good loan officer, an attorney, home inspector, and other professionals that maybe required to achieving your dream. The Bazinet Team will educate you of the current market conditions, listen to your wants and needs in a home, negotiate on your behalf and solve any problems that may arise in between. Our clients come first!
STEP3: OBTAIN PRE-APPROVAL FOR A LOAN
The Bazinet Teams recommendation is to first obtain a copy of your credit report & FICO score. If there are any unknown issues or errors with the credit report, work on getting it corrected, it will avoid any potential troublesome spots down the road when you are waiting for mortgage approval. Credit bureaus are required to help you straighten errors & issues in a reasonable time frame (usually 30 days).
How much can you afford? What would my monthly mortgage payments be? The lender you choose will pre-approve you for a loan amount. However, it is up to you decide what you are comfortable with paying every month! The process includes analyzing your income, assets and present debt to estimate what you may be able to afford on your home purchase. Getting a pre-approval makes you a stronger buyer and looks good in the seller’s eyes. So let’s fill out the loan application & obtain that pre-approval.
STEP 4: SEARCHING FOR THAT NEW HOME
Bazinet Realty’s website(s) is one of the best ways to search for homes today. You can receive daily emails with new and updated listings from the various towns and price range of your choice.
• Search the entire MLS for all homes, condos, land, multi-family, commercial properties, and past sold properties at your convenience.
• View full listing sheets showing amenities, taxes, lot sizes, beds, bath rooms, siding, fireplaces, garages, room sizes and much more.
• You can get the property address and see the location on MapQuest.
• Check out schools & community profiles of your preferred towns.
• Save preferred listings in your own file and view at anytime.
• Calculate approximate mortgage payments for specific properties.
Our websites are: www.bazinetrealty.com and http://bazinetrealestate.com and of course directly through the Multiple Listing Service (MLS) if you like just let us know and your Bazinet Team will set it up.
STEP 5: LET’S FIND YOUR NEW HOME
So now you are pre-approved and ready to find that dream home. Ask yourself these questions: what neighborhoods/towns would you like to live in; do you need to be close to a parent, work, or perhaps easy access to a highway? What about school systems? What other types of amenities & features of a home would you find appealing, how many bedrooms, baths, style of home, acreage, etc? Does the home need to be handicap accessible? Are you willing or enjoy remodeling? Does it fit in with your lifestyle? These are some of the questions your Bazinet Team will help you address and prioritize. Talk to your Bazinet Team and let’s go exploring together to find that dream home.
STEP 6: MAKING AN OFFER
Have you found the home you’d like to buy? Talk with your Bazinet Team, come to a decision and then prepare & submit a written offer, and start the negotiation process when you are ready. Three (3) of the basic parts of your offer are: (1) price, (2) terms and (3) contingencies. Pricing – your Bazinet agent will research “sold” comparable properties to establish a fair market value. Terms – for the most part pertain to financing and various timing factors. Contingencies – are the clauses that allows you to walk away from the deal should the house have a problem that you weren’t aware of, problems with obtaining financing, a closing date not met, etc. Look to your member of the Bazinet Team to explain & guide you through the offering process. An earnest money deposit is submitted with the offer.
STEP 7: HAVE A HOME INSPECTION 7-10 DAYS
Great your offer has been accepted! Now let’s get that home inspection & other inspection appointments under way. There are several reputable professional independent home inspection firms available and they must be licensed in the Commonwealth of Massachusetts. Go to http://www.ma.gov to review the licensed list. The Bazinet Team also maintains a list of area licensed professional home inspectors that other buyers have worked with in the past and will provide you with the list upon your request, to assist you in making your choice.
Do you need to attend the home inspection? Yes, we highly recommend you attend as well as a member of your Bazinet Team. You will learn several factors about the home, any unknown issues, how to repair those issues, & help you decide whether you elect to repair or would like to request seller to repair and perhaps a ball park repair figure, and/or possibly re-negotiate your offer.
Types of inspections include: structural, mechanical, utilities, radon, lead paint, water quality & quantity, air quality, pest & termites, & mold. Costs range from $250 to $600 depending upon inspection required.
Private septic systems require the inspection by a licensed Title 5 inspector and are generally the responsibility of the seller but on occasions can be conducted by the buyer.
Remember “timing & contingencies” in your offer? One of the timing factors falls under the time you have to conduct a home inspection. This is usually 7-10 days from acceptance of offer. Contingencies: One of the contingencies would be subject to satisfactory home inspection.
STEP 8: MORTGAGE APPLICATION
It’s now time to get your full mortgage application into your lender (formal application). Once the lender has received your application a formal credit report, verification of employment and other verifications will be conducted. The mortgage lender will also order an appraisal of the home to verify that they are not loaning funds for more than the house is worth. A survey maybe required to establish, verify lot lines and property lay out. A title search will be ordered to determine if there are any liens against the property.
STEP 9: PURCHASE & SALE AGREEMENT 10-14 DAYS
It’s time for the lawyer to draw up the Purchase & Sale Agreement (aka P & S Agreement) for both the buyer & seller to review & sign. Please review this carefully as it contains all the details of the transaction. The dollar amount written in the offer to purchase as an additional deposit is now due as agreed.
STEP 10: MORTGAGE COMMITMENT 28-35 DAYS
A mortgage commitment is issued by your mortgage lender. This document provides written proof that the bank is willing to advance you the buyer a specific sum in the form of a mortgage loan, in order to complete the purchase of the property. It will also contain an expiration date. This date is critical and should be monitored by yourself and your Bazinet Realty agent. You the buyer, the seller
& your real estate attorney must also complete all conditions listed on the mortgage commitment letter.
STEP 11: HAZARD INSURANCE POLICY
One of the additional requirements by your lender is a hazardous insurance policy (aka as an “Insurance Binder). This requirement protects both the interests of you and the lender. The first year usually is paid up front. Standard Homeowner’s insurance policies are identified as HO1, HO-2, HO-3, HO-4, HO-5 and HO-6. HO-4 is a tenant’s policy and HO-6 is for condominiums and cooperatives. HO-1, HO-2, HO-3, and HO-5 cover owners of single family dwellings. A homeowner’s policy provides coverage against loss by fire, wind, storm, hail, dust, surface waters, waves, frozen plumbing, vandalism, and industrial smoke damage, and provides personal financial liability coverage to the policyholder for personal injury and property damage caused by the policyholder.
STEP 12: TITLE SEARCH
What does Title Search Mean? A Title Search is an examination of public records to determine and confirm a property’s legal ownership, and find out what claims are on the property. A title search is usually performed by a title company or an attorney, who researches the vested owner, the liens, betterments, or other judgments on the property, the existing loans on the property and the property taxes due.
Therefore before you close the deal on the purchase of a home, a title company will search public records on the property’s ownership. Once the search is finished, you’ll receive a preliminary title report. If there are any issues or problems with the title, your real estate attorney can point them out and discuss with the seller attorney. Some problems are easily cleared up while others may take so long that they jeopardize your loan commitment.
STEP 13: CLOSING ON YOUR NEW HOME 45-60 DAYS
Closing normally occurs between 30-45 days after you have a signed sales contract. Closing takes place at usually the Registry of Deeds or the attorney’s office. At the closing, all monies will be collected; existing loans & liens will be paid off, and insurance will be issued insuring a free and clear title. You may need to bring a bank check to the closing and it is also recommended that you bring your checkbook just in case. The deed is then recorded and transferred. Plan on 1 to 2 hours for signing all the documents and getting everything in order. Bring a photo Id such as a driver license. Be sure to read everything before you sign!
Line up a mover or get the gang together to assist you in the moving process.
Remember to switch the utilities to your name & establish a new account: electrical, phone, trash, cable services, sewer, gas and any other services that maybe required.
Your 24 hour “walk through” is to make sure that all repairs have been completed in accordance with your agreement and that the home is in the same condition as when you made your offer. Should a problem arise, funds can be held in escrow to remedy the issue.
Your keys to your new home are presented to you by your Bazinet Team upon recording at the Registry of Deeds.
STEP 14: BRIEF REVIEW OF DESIGNATED BUYER’S AGENT
A brief synopsis of what to expect from your “Designated Buyer’s Agents” at Bazinet Realty.
• Obedience – to the lawful instructions that you give me.
• Loyalty –. We must be loyal and keep your best interests ahead of those of any other party, including ourselves.
• Disclosure – disclose material facts to their client. Material facts are those that, if known by the buyer or seller, might have caused them to change their purchase or sale actions.
• Confidentiality – means that you do not disclose anything that you learn about your client, their business, financial or personal affairs or motivations. This duty survives closing and lasts forever. What we discuss goes no further than your Bazinet Team expert.
• Accountability – Accounting for all documents and funds in the transaction is a fiduciary duty. Accurate reporting of the whereabouts of all monies pertaining to the transaction and their ultimate disposition is a fiduciary responsibility.
• Reasonable care – as licensed real estate professionals we are expected to have a certain level of knowledge and be able to advise and guide our clients through the process without harm. Whether on the buyer or seller side, we are expected to advise on price, inspections, negotiations, repairs and many other facets of the transaction. If it’s not something we’re expected to know, we are
expected to advise our clients in how to get the information.
Remember your Bazinet Team is available to you always, even after closing!
*This home buying guide is only a general overview of the process when buying a home.
