The 1st step would be to meet with a lender to get pre qualified. This is a very important step because once you find a house and are ready to put in an offer, this letter needs to accompany your offer to show that you actually have the ability to make the purchase.
The goal is to give confidence to the seller to enter into a contract with you and not someone else to sell their house to. So you need to look “good” on paper.
While getting prepared, you should be saving or have some cash on hand. You will need funds for the (earnest money deposit), EMD, inspection and appraisal. Typically your deposit should be about 1% of the purchase price but no less than $1000. You want to demonstrate to the seller that you are a solid buyer.
Next is the Fun part….we go shopping… We will locate the house you would like to put an offer in on!
Once that is done and the seller has accepted the offer, we next get an inspection. They typically cost $350-$450. This fee is paid to the inspector at the end of their inspection of the home. We will also choose a title company that will handle the settlement or closing. Don’t worry if you do not know of any title companies or inspectors, I have good recommendations that I will share with you.
The bank then will send out an appraiser to make sure that the offer is not more than the home is worth and that the home is in a condition that is acceptable to the bank. This fee is typically paid at closing but more and more lenders are requiring it be paid up front. Cost is usually $450-$500.
After this we can proceed to closing. Before putting in an offer I will send you an estimate of what your closing costs will be. A good rule of thumb would be to budget for your closing costs to be around 3% of the purchase price.
At least 3 days before settlement you will get the actual closing cost amounts from your lender. Then at settlement all the paperwork is signed by the seller and buyer, deed will be recorded with the city/county, and you become the proud new owner of your dream home!
Hope this is helpful and please feel free to call if you have any additional questions.
For additional information, you can follow this link to view or download my Buyer’s guide.👉🏾ttps://makedarealestate.com/free-buyer-guide/
ABOUT THE AUTHOR: MAKEDA PHILLANDER
I’m a lover of fun, family and friends have my , fitness model in training(only in my head) and Realtor to Baltimore Maryland. This is a strong group of Baltimore residents who get daily information about Baltimore events, restaurantsand real estate Join us as we explore the most amazing activities in and around Baltimore. Got real estate questions? Call or text Makeda anytime 443-929-0703