A Guide For Homebuyers
Our guide for Ocala homebuyers offers the knowledge you need to make a competitive offer which attracts a seller’s interest. The inventory of homes listed for sale in Ocala, Florida has begun to expand and but supply is still relatively tight. In any event, there is one thing you would be wise to realize. Making a successful offer is not just about price!
Avoid these mistakes buyers often make:
- Failure to prepare finances and shop for the best mortgage rate.
- Putting off getting preapproved for a mortgage.
- Not being represented by a qualified buyer’s agent.
- Not obtaining the data on which to base an informed offer.
- Making an emotional decision instead of using dispassionate business judgement.
- Making major financial commitments before closing which cause them to no longer qualify for the mortgage loan they were preapproved for.
- Buying more home than they can comfortably afford.
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Steps to Buying a House
How’s your credit?
Lenders factor risk into the decisions as to whether to approve a loan and how much interest to charge. A good credit score and a clean payment history will improve your chances of being approved at an interest rate you can afford. Get your credit in order first! .
How much house can you afford?
Don’t overreach. The rule of thumb is to keep your housing costs (mortgage, insurance, real estate taxes, etc) to 30% of your income. Aiming at 25% would be even better! .
Get preapproved by a reputable lender. It will improve your leverage when negotiating a home purchase and give you a clearer picture as to what you can afford! .
Lets go house hunting!
Hire a knowledgeable realtor to help you navigate the local real estate market and find the perfect home for you. The hunt for a lifestyle to fulfill your dreams and desires begins. .
Make an offer!
Consider comparable sales, terms, closing costs and other factors when structuring your offer. With your Realtor’s help, try to find out what factors are important to the seller and incorporate them in your offer. That will make your offer more competitive and improve your leverage.
Order home inspections!
Your offer will include a contingency for home inspections. Hire a reputable home inspection company. Then, if its report discloses major issues, try to negotiate an acceptable resolution. But don’t be afraid to walk away if you cannot. .
Finalize your home purchase transaction!
Take the final steps necessary to close on your new home, including reviewing the closing statement, arranging for insurance and having the cleared funds required to close ready. Rely on your Realtor, real estate attorney or title company to provide answers to any questions you may have and to help you prepare for closing.
Close on your new home and begin enjoying your new lifestyle!
Finally your big day has arrived. Your Realtor and the title company handling the closing are there to answer any remaining questions and help you to prepare and stay organized. We wish you a smooth, stress free closing and many years of joy in your new home!
Preapproval or Prequalification?
Make sure you have a mortgage preapproval before going house hunting. A preapproval is essentially a full mortgage approval, subject to your contracting to buy a qualifying home. On the other hand, a prequalification represents that you are expected to qualify for a mortgage. But the lender must still verify the information you provided before approving your mortgage. Since sellers want to be as certain as possible that buyers are able to close, if you have a pre approval in hand, you have more leverage in negotiations. Therefore, please consider a preapproval to be essential to the buying process.
Representation by a buyer’s agent
Make sure you are working with a buyer’s agent because you need someone to represent your interests. Don’t be afraid to ask if your Realtor is acting as a buyer’s, seller’s or transactional agent. A buyer’s agent represents you, a seller’s agent represents the property owner, and a transactional agent only facilitates the transaction. Therefore, he or she does not represent either party.
Determining offer price
Obtain a CMA, an analysis of the fair market value of the home you are considering. Since it is a reliable estimate of value, you will find it to be a useful guide during the offer and negotiation phases of a transaction. We recommend that you not settle for anything less.
The importance of seller disclosures
Make sure you ask for a signed seller disclosures form in your offer. Do this because by law sellers are required to disclose known defects. Additionally, they also must represent that they have disclosed all defects they are aware of. By asking for the form in your offer, you will gently remind to the seller and his agent of this obligation.
Order a thorough inspection
Hire a reputable inspection company that will do a thorough inspection and provide a report detailing the home’s condition. Pay special attention to the date roofing permits were pulled, the age of the AC system and all reports require by insurers. Also, order a wood destroying organism inspection separately. Buying a home may be the most expensive investment you will make in your lifetime. Our guide for Ocala homebuyers advice is don’t try to save a few dollars on the inspection because doing so is seldom a wise decision. Also, be careful to take note of the deadline for completing inspections specified in the contract and adhere to it. Remember that missing the deadline will void the inspection contingency and put your deposit at risk.
The Mortgage Process
Your mortgage preapproval will satisfy the contract’s requirement that you apply for a mortgage within a specified time period. But be sure to prioritize providing all documents and information requested by your lender. You must obtain final mortgage approval by the deadline specified in the contract. Therefore, you will want to help to facilitate the final mortgage approval process. Also, think before you act.
Save actions like buying a new car or using your credit card to book a world cruise until after closing. Take care not to make major commitments that impact your financial strength. Such actions may negatively effect your ability to qualify for your loan, even if you have been pre approved. Take our Guide for Ocala homebuyers advice. We have seen too may transactions collapse because an extravagant purchase changed debt to income ratios.
Homes for sale in Ocala Florida
We understand that there are many sources of information available to you about homes for sale in Ocala, Florida. Therefore, we set out to make our guide for Ocala homebuyers your best option. On our Search Platform you will find the most current information and the most search flexibility available. Search with the same tools professional Realtors use and get your answers efficiently and easily.