First Time Home Buyers Info | Killeen Tx Real Estate | Copperas Cove Homes

The Home Purchasing Process Here in the Copperas Cove, Harker Heights, Killeen and Kempner, Texas Simplified For Home Buyers.

In the old days, the buyers would go house hunting. When they found their dream home, they would then go to get pre-approved. In today's market, that is like putting the cart before the horse. It is the least effective method to locating a home within your qualification and has proven to be very time consuming.

Loan Pre-Qualification: The First Step; in this process is to get your loan approved if you are going to be financing a home. Why? This way you will know how much of a loan you qualify for. Loans are granted on credit worthiness and the ability to pay back the loan. In other words; The bank will run a credit history check to determine your credit rating and verify your employment status. This is to ensure that you have a job and are able to repay the loan. Once the lender has pre-qualified you, they will issue you a pre-qualification letter. You will need this letter once you locate a property you would like to make an offer on.

Select One Realtor: The Second Step; You want to select one realtor to work with you in this process. Your realtor can show, sell, or represent you when a newly built home or any other home on the market becomes available. Your realtor will be your point of contact regardless of the company that has it listed. He or she can also give you information about brokerage services. Always know who the agent works for. If you have a Realtor and have signed a buyer's representation, you are your realtor's client not his/her customer. Remember, you want to enter into all transactions with your own realtor. This service does not cost you anything. Buyer's agents are paid once the property sells from the seller's agent.

Determine A Monthly Payment: The Third Step: Determine what you want your monthly payment to be if you are going to be financing the home. If you are purchasing on a Veteran Administration (VA), or Federal Housing Assistance (FHA), your monthly payment will consist of your loan Principle, Interest, Taxes, and Insurance (PITI). Conventional loans may vary. Next, write down your priorities; location, schools, commute time to work, bedrooms, baths, and other amenities that are important to you. Meet with your realtor or get this information to him/her. They have a software program called: Multiple Listings System (MLS) that can retrieve all the properties available that meet your requirement. Once you have reviewed and selected the properties you want to preview, your realtors will have the means to get you into each of those homes.

Making An Offer To Purchase: The Fourth Step: When making an offer on a home, how much money will you need? In most cases you will need “earnest money”. Earnest money accompanies your offer to show good faith to the owner. It shows that you are serious about entering into a negotiation with them to purchase the property. This check is made payable to the company where the closing will be taking place. Next, is the Option Fee: An option fee check is made payable to the owner for the unrestricted right to terminate the contract. This is done so by getting written notice to the owner within a certain timeline (normally 7 to 10 days). Home Inspection Fee: During the option fee time is when you want to have the home inspected by a “Licensed Home Inspector”. This will help in determining the overall condition of the property. This step will give you peace of mind on your investment. If you don't want to move forward with the purchase, you would then exercise your options, pay the seller the option fee, terminate the contract, have your earnest money returned to you, and no longer be obligated to purchase the property.

Typically How long Does It Take To Close On A Home?: The timeline varies. This all depends upon your option period and other requirements that the lender/title company may need to ensure the owner can transfer the property without any clouds on the title. If you have provided the lender with all the required documents to be fully approved for the loan, typically, thirty days should be enough time for planning purposes. Your “realtor” should be able to provide you with a good estimated timeline once you write up your completed offer.

What is a One Dollar Move-In?: A “one dollar move-in” is when the Buyer is purchasing the property on a VA loan and the seller has agreed to the terms to pay the buyer's closing costs and all pre-paid items.

What Are Closing Costs and Pre-paid Items?: Closing costs and pre-paid Items are fees that are charged to the buyer by the lender for processing buyer's documents, establishing their escrow account, and granting the loan. Title company fees are for bringing everything together to close and record the transaction.

Should you have any questions about purchasing properties here in the greater Fort Hood Texas area, please feel free to contact me.

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