Tyler Home Buying Process
The purchase of a Tyler area home will probably be one of the biggest financial decisions you will ever make. Whether this is your first home purchase or you are moving up to a different home that better meets your needs, this decision must be made carefully.
Determining Your Needs
1. Define your Tyler Home Needs: Why Do You Want To Buy? Are you currently renting and would like to have a home where you can begin building equity? Maybe you recently married and have outgrown your current residence. Or, maybe you have just gotten a promotion, which requires you to move to a new city. These factors will all have a bearing on how you approach your home search. Defining your needs and goals will help you throughout the buying process, and it will assist your Tyler Real Estate Agent with the process of finding the perfect home for you.
2. Establish your Budget: What can you afford to buy? East Texas home ownership is a great investment. The tax benefits of home ownership can also provide considerable advantages to you. Prepare yourself by defining your budget prior to contacting your Tyler Real Estate Agent. With this determination, you will have taken an important step in streamlining the search for your Tyler home.
3. Establish what you want in a Home: You most likely have a mental picture of what you would like your house to look like and what features it should have. It's very important to write these ideas down to avoid any ambiguity later in your home search. You should make at least two lists: one should be a list describing your dream home and the other should list the features of the home that are an absolute must have in order to buy it. In a perfect world, your new home would fulfill both lists 100 percent. It is more likely that you will end up blending the two lists into a schedule of prioritized items as you progress through the buying process. This is a natural and evolutionary process as you get clearer about what you want and what is available.
- Determine your Price Range: Now that you have your list of features you want in your new home, you are ready to start looking! Well, not just yet. You are going to need to know in what price range to look. There are two ways to go about this. You can get pre-qualified or pre-approved for a mortgage. Either way, you will need to contact a mortgage company. There are some key differences between prequalification and preapproval for a loan that you need to be aware of. Loan prequalification is a simple process. It takes into account very basic information regarding your financial status and gives you an amount for which you may qualify. This can be done strictly on a verbal level or electronically over the Internet. The prequalified amount is based solely on the information you provide. In our market, prequalified buyers hold little clout compared to preapproved buyers due to the fact that the information given during the prequalification process is not thoroughly investigated and therefore may be unreliable. Where a preapproved buyer is actually approved for a loan of a certain amount, a prequalified buyer is only told that they might be approved for a certain amount.
Pre-approval is a much more involved process. The lender will take all pertinent information regarding your finances and perform an extensive check on your current financial status. This will ultimately give you the exact amount that you will be eligible for (depending on what type of loan you decide to go with). Being preapproved lets the seller know that you have gone through an extensive financial background check and there should be no unexpected obstacles to buying the home. You can see how being preapproved would be more attractive to a seller than just being prequalified.
Choosing a Real Estate Agent
Here are a few factors to keep in mind while choosing a Tyler Real Estate Buyers Agent:
1. Buying a Tyler Home for Sale: It is in your benefit to have an professional expert in your corner when embarking on such a large purchase. Claudia Carroll and her Team of Tyler real estate experts can seamlessly guide you through the process.
2. Choosing a Tyler Real Estate Agent: Here are a few important factors to consider when choosing your real estate agent:
- Look for a full-time agent who has experience completing transactions similar to yours.
- Does the agent specialize in the Tyler Residential Market?
- Ask how long the agent has been actively in the business?
- Ask how much time the agent will have to assist you?
- Ask about their credentials and education: A good agent will continually strive to improve and gain current knowledge of the latest real estate trends.
- Ask for a list of homes the agent has sold and/or a list of references.
- Choose an agent who listens attentively to your needs and concerns.
- Choose an agent with whom you feel comfortable communicating with.
To gain more detailed information about Claudia, please visit our About Claudia Carroll page.
Shopping for Tyler Homes for Sale
Once you have completed your preparations, it is now time to find the Tyler area home of your dreams.
1. Take a Drive: Get to know the Tyler Area Communities you are interested in. Drive around and get a feel for what it would be like to live in each of the areas. This step will assist you with gaining a better knowledge of the surrounding offerings such as: Schools, parks, entertainment opportunities, local commerce, and hospitals.
2. Narrow your search: Select a few homes that interest you and have your real estate agent request appointments to visit them. Discuss the potential re-sale value of the home you are considering with your agent.
3. Time to Make the Offer: Once you have chosen the Tyler area home of your dreams, it’s time to make an offer. Once your offer is made, we may need to enter some negotiation in order to reach an agreement. Keep in mind that almost everything is negotiable when you are buying a house. This can give you a great deal of leverage in the buying process -- that is, if you have adequate information and you use it in an appropriate manner. Claudia Carroll will have the market knowledge and negotiating expertise necessary to make sure that your offer is accepted at the best price and terms possible for you.
Escrow, Inspections, & Lender
1. Title Company: Claudia Carroll and her Team will assist you with selecting a title company which acts as a neutral third party holding all instruments, including the funds and the deed. The title company will research the complete recorded history of the property, to insure that the title is free and clear of encumbrances by the date of closing and that all new encumbrances are properly added to the title. Some properties are subject to restrictions which limit various activities from building to parking restrictions. There may be recorded easements and encroachments, where others have limited rights to use your property.
3. Home Inspections: Once your offer is accepted by the seller, you will need to have professional inspectors evaluate your home's major systems. Claudia Carroll can recommend various types of inspectors such as: property inspectors, foundation inspectors, pool inspectors, and septic inspectors.
4. Lending: Keep in close communication with your lender, who will let you know when additional documents are needed to approve your loan application and fund your loan. The lender will order the appraisal at the appropriate time and you may be required to pay a fee for this service. Appraisers are specialists in determining the value of properties, based on a combination of square footage measurements, building costs, and recent sales of comparable properties. When you are within two weeks of closing, double check with your lender to be sure the loan will go through smoothly and on time.
Closing on Your Home
"Closing" refers to the meeting where ownership of the property is legally transferred to the buyer. It is a formal meeting in which most parties involved in the buying/selling process will attend. Closing procedures are usually held at the title company's office or lawyer's office. Your closing officer coordinates the document signing and the collection and disbursement of funds. Claudia Carroll or one of her Team members will be present at your closing to read the documents on your behalf, answer any questions, or help to resolve any last minute or unexpected details that may come up.
In order for the closing to go smoothly, each party involved should bring the necessary documentation and be prepared to pay any related fees (closing costs). There may be more than one form of acceptable payment for your closing costs, so ask the closing officer which form of payment will be required and to whom it should be made out. Closing costs will generally total an amount equal to 2 to 3 percent of the total loan value, not including down payment and the buyer's escrow account.
Sellers sometimes pay for a portion or all of the closing costs, depending on local market conditions, terms of the purchase contract, and the seller's cash and timing considerations. Any such concessions should be acknowledged in writing. Most lenders will allow a credit from the seller to the buyer for the non-recurring closing costs. However, they usually won't allow a credit that reduces the amount of the buyer's down payment or any of the buyer's recurring costs, such as expenses for insurance premiums, PMI, or property taxes.
Moving Into Your Home
Congratulations on the purchase of your new amazing Tyler area home! Now that you have taken ownership of the property you will need to have your local services such as electricity, water, cable, and gas set up. We can help provide you with a list of contacts. Also, you should already be aware of the expenses that are typically associated with owning a home. Neighborhood Association fees, landscaping costs, and annual taxes should be budgeted for throughout the year.