Buyer’s Guide

The first step on the road to home ownership is deciding to buy. Why do you want a to buy house? How long do you want to live there? Can you afford the house that you need or want? Once you’ve answered these questions, Barker Realty can provide you with the professional guidance that will make purchasing a home an exciting, stress-free process.

Choosing a Broker
Keep a few points in mind when you’re choosing the person who’ll help you search for a home and represent you in negotiations and transactions. You want a broker who can help you through the entire process of purchasing a new home. You want someone who can explain the procedures involved, familiarize you with all the necessary documents, and find the home you want with the best terms possible.

Your broker should...

• Know the communities you’re interested in
• Understand local and state requirements that could affect your transaction
• Be a strong, effective negotiator
• Be well trained and have access to programs for continuing education and certifications
• Understand technology and use it effectively
• Have the assistance of a skilled marketing department
• Have access to professional legal counsel

Prequalification for a Loan
Explore your options. A wide range of mortgage plans and rates are available. Your Barker broker may be able to help you to select your mortgage lender.

If possible, prequalify for a loan before you start shopping for a home. This means that a loan officer will provide a letter stating that you will be approved for a loan up to a certain amount.

Being prequalified will help you...

• Determine the price range you can. This saves you time—you start your search looking at houses you are prequalified to buy.
• Understand the types of loans you qualify for
• Make negotiating easier. Sellers will feel more comfortable dealing with buyers who are already qualified for a mortgage loan.
• Determine what your monthly payment will be afford (a good rule of thumb: your payment should not exceed a third of your monthly net income)
• Estimate your down payment (typically 10–20 percent but variable depending on your credit rating and other conditions) and closing costs
• Speed up the closing process

Determine What You Want and Need
Your Barker broker will meet with you and discuss why you want to buy a house. He or she will ask you what sort of property you’re looking for— location, number of bedrooms and baths, minimum square footage, minimum lot size, necessary garage space, storage requirements, etc. You’ll discuss your plans for the future and how you want your new house to grow with you. You’ll discuss neighborhoods, schools, and various factors that may affect the market. Detailed information about your wants and needs will be invaluable to us. We want to help you find the property of your dreams.

Searching for and Viewing Properties
Based on criteria you choose, your Barker broker will start the search for your ideal home. He or she will utilize an in-depth knowledge of the community, contacts and connections, and professional resources to search out available properties that meet your needs. Barker Realty’s expert understanding of the local market is crucial to this search.

When possible, your broker will preview appropriate properties to determine how suitable they are, saving you time and effort. Your broker will then schedule appointments for you to tour the best homes at your convenience. Of course, if you find a property that interests you on the Internet or through your own research, tell your Barker broker, and we’ll arrange a showing.

As you tour homes, your Barker broker will point out each property’s positive and negative features and ask you what you like and don't like. During your search, your list of what’s important and what’s not important may change. Based on this, we’ll narrow the search and hone in on the house of your dreams.

Making an Offer and Negotiating
Once you have found the home you want, your Barker broker will utilize his or her professional training to help you structure your offer. He or she will research comparable properties to determine fair market value. He or she will let you know if an asking price is negotiable or if a house is "priced to sell." And your broker will inform you when the market is "hot" and requires immediate action or when the market is "cool" and allows for thoughtful consideration.

Your Barker broker will compose your offer (including a price and terms and conditions you deem satisfactory), present the offer to the listing broker, and negotiate on your behalf. The seller may present a counteroffer. Your broker will discuss the counteroffer with you and help you decide whether to accept it, submit another counteroffer, or reject the counteroffer and move on.

If your offer is accepted, your Barker broker will draft your purchase agreement and advise you of protective contingencies, customary practices, and local regulations. He or she will help you coordinate the completion of contingencies, including

• Preliminary title report approval
• Property appraisal
• Loan approval
• Property inspections
• Pest inspection and certification
• Obtaining homeowner's insurance

An offer is normally presented with "earnest money"—cash given to a seller to secure your offer on the property that is applied to your closing costs. This money is held “in escrow”—by a neutral third party that will receive, hold, and distribute all funds associated with your transaction.

Obtaining Financing
Once the purchase agreement has been accepted and signed, apply for your mortgage loan (being prequalified will make this process quicker). Your lender will obtain an appraisal for the property and complete several other steps to approve your loan.

You will receive a "good faith estimate" of closing costs when you submit your loan application. Your Barker broker will review this estimate, highlight any missing costs and low estimates, and answer your questions.

Closing and Moving
Closing will most likely be held 30 to 60 days after you make your offer. When you have secured financing and all of the conditions of the purchase agreement have been met, you will sign your loan documents and closing papers. You deposit the balance of your down payment and closing costs to escrow, and your lender deposits the balance of the purchase price. The deed is recorded at the county recorder's office, and you own your new home! Congratulations!

Now it’s time to move in and start making your new house a home. Barker Realty is a valuable source of helpful moving tips. We can even provide you with a checklist to help plan and coordinate, making your moving day a pleasure.

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