Financial Aspects Of Buying A Home
Buying a home will probably be the biggest purchase and investment of your life. Therefore, you want to be sure you are working with a qualified professional Realtor® as you begin your home buying process. The professionals at Kruse Company REALTORS® are well versed in assisting Buyers through the many steps of purchasing a home, and would be pleased to assist you as well.
The first two steps of the process are interchangeable, but both very important. The first step is to sit down with your Realtor® to familiarize yourself with the process and discuss the details of what you are looking for in a new home. After meeting with your Real Estate Broker your next step is to meet with a lender to establish an appropriate price range in which to search for a home. Again, you can meet with your lender first if you'd like so that when you meet with your agent you also have an idea of what price range is appropriate.
Meeting with a lender early on in the process will save you time and could save you from disappointment later. Too many times Buyers begin looking at homes before they know what price range they can actually afford. Nothing is more disappointing than finding and falling in love with a house, only to find that it is $30,000 out of your price range. Another good reason to see your lender early in the process is so that you can begin the pre-approval process. You can learn more about Getting pre-approved here.
So, those are just a couple of the first and very important steps to take when beginning the home buying process. The rest of the steps including in the process vary in timing, sequence and length depending on each individual Buyer and their situation. To give you an idea of the whole process at a glance we have put together a brief outline of the steps involved in the journey to home ownership...we call it The Anatomy of A Purchase!
An important part of every Buyer's home purchase is to be sure that their investment is properly insured. In fact, most every lending institution will require the Buyer to show Proof of Insurance and a paid receipt of the first year's premium prior to closing on the property. Following the first year, installment plans are available for premium payments.
Kruse Company REALTORS® is pleased to be able to provide our clients with assistance in obtaining Homeowner's Insurance.
How Buyers Should Handle the Following Common Situations
Discovery of a Home "For Sale by Owner" (F.S.B.O):
It is up to you as a Buyer to protect yourself! If you don't have a Buyer's Agent, who will do that for you? Not the seller! This is why you should have a Buyer's Agent representing you and looking out for your best interests especially if you are thinking of buying a FSBO home!!
People who are selling their house on their own, unless they are areal estate agent, do not necessarily know all there is to know about the process of selling a home. There is more to it than just writing, countering and accepting offers, establishing time frames for contingencies and how they need to be satisfied, ordering title insurance and scheduling the closing and making sure it all happens smoothly and effortlessly.
Please Note: Although many FSBOs will pay a Buyer's Broker fee, some will not. In the event a F.S.B.O. would not pay a buyer's broker fee, the Kruse Company would lower its fee to 2.5% of the purchase price. Kruse Company REALTORS®, unlike any other real estate company in Dane County makes this company policy, in order to further help our clients to make the home buying process less stressful and more affordable.
- Avoid direct contact with the Seller, so as to avoid conflicts over commissions.
- Contact your Broker with the address and telephone number of the FSBO.
- I will contact the sellers and get an appointment for us to look at the house together and I will draft and negotiate any offers, counter offers and amendments
Open Houses Listed with Other Real Estate Companies:
Upon entering the open house and after introducing yourself, inform the person holding the open house that you are working with a Buyer's Agent, and give them my name and phone number.
In general, avoid contact with Sellers and Agents of Sellers. Always contact your Buyer's Agent for viewing and negotiations.