Buyer Guide
Buying property involves a seemingly endless number of details. This guide is designed to make the process easier to navigate and understand.2. BE READY TO MAKE AN OFFER
When you find the right property, you want to be ready to act. Even in a slow market, desirable, well-priced properties can sell quickly. Sometimes properties that have languished on the market can suddenly receive multiple offers. Here are four recommendations.
KNOW WHAT YOUR BUDGET IS
A bank may offer to loan you more money than your budget allows. You need to be comfortable with your monthly housing expenses, which include not just the mortgage payment, but also property taxes and insurance, plus condo or homeowner/road association fees. Also take into consideration that the interest you pay on your loan is deductible (up to $750K as per December 2017 tax bill).
TALK TO A LENDER ASAP
We highly recommend you choose a local bank. They are often much easier to work with, and are familiar with the the particulars of Berkshire real estate. Run financing scenarios with them. If need be, your lender can advise you on how to repair your credit. Getting pre-qualified gives you a general idea of what you are able to buy. Getting pre-approved is a more in depth process that gives you the specific amount you can borrow, and what the monthly payments will be. Getting pre-approved enables you to make an offer as soon as you find the right property.
See The Loan Process, for a guide to what happens once you submit a mortgage application.
PREPARE YOUR CURRENT PROPERTY
If you need to sell your current property in order to buy, is it listed—or at least fully prepared for market? If not, it will hamper your ability to make an offer on a new property, as most sellers will not consider a home sale contingency. (You may want to refer to our Sellers Guide for info on getting your house listed.)
ENGAGE AN ATTORNEY
You will need to engage an attorney to review contracts and associated documents, check title, advise you about title insurance, and guide you through the home stretch to closing. If there is no survey or plot plan on the property you end up buying, your attorney may order a plot plan for you. Occasionally attorneys will handle tricky negotiations along with or instead of your REALTOR®.
Guides written by Barney Stein,
LVRE agent since 2007
2. BE READY TO MAKE AN OFFER
When you find the right property, you want to be ready to act. Even in a slow market, desirable, well-priced properties can sell quickly. Sometimes properties that have languished on the market can suddenly receive multiple offers. Here are four recommendations.
KNOW YOUR BUDGET
A bank may offer to loan you more money than your budget allows. You need to be comfortable with your monthly housing expenses, which include not just the mortgage payment, but also property taxes and insurance, plus condo or homeowner/road association fees. Also take into consideration that the interest you pay on your loan is deductible (up to $750K as per December 2017 tax bill).
TALK TO A LENDER ASAP
We highly recommend you choose a local bank. They are often much easier to work with, and are familiar with the the particulars of Berkshire real estate. Run financing scenarios with them. If need be, your lender can advise you on how to repair your credit. Getting pre-qualified gives you a general idea of what you are able to buy. Getting pre-approved is a more in depth process that gives you the specific amount you can borrow, and what the monthly payments will be. Getting pre-approved enables you to make an offer as soon as you find the right property.
See The Loan Process, for a guide to what happens once you submit a mortgage application.
PREPARE YOUR CURRENT PROPERTY
If you need to sell your current property in order to buy, is it listed—or at least fully prepared for market? If not, it will hamper your ability to make an offer on a new property, as most sellers will not consider a home sale contingency. (You may want to refer to our Sellers Guide for info on getting your house listed.)
ENGAGE AN ATTORNEY
You will need to engage an attorney to review contracts and associated documents, check title, advise you about title insurance, and guide you through the home stretch to closing. If there is no survey or plot plan on the property you end up buying, your attorney may order a plot plan for you. Occasionally attorneys will handle tricky negotiations along with or instead of your REALTOR®.