Buying a Home

Getting Ready to Buy Your Home

Before embarking on your home-buying journey, it’s essential to prepare your financial documents and credit. Here’s what you need to know:

1. Gather Your Financial Documents

To secure financing, you’ll need to provide a comprehensive financial picture. This includes:

• Proof of Income: Recent pay stubs, W-2s, and tax returns.
• Bank Statements: Showcasing your savings and checking account balances.
• Investment Accounts: Information on stocks, bonds, and mutual funds.
• Debt Information: Credit card statements, auto loan statements, and student loan statements.

2. Check Your Credit Score

Your credit score significantly impacts your ability to qualify for a mortgage and secure favorable interest rates. Consider taking these steps:

• Review Your Credit Report: Check for errors and inaccuracies that could negatively impact your score.
• Pay Bills on Time: Consistent on-time payments demonstrate financial responsibility.
• Reduce Debt: Lowering your debt-to-income ratio can improve your credit score.

3. Work with a Trusted Lender

A qualified lender can guide you through the mortgage process and help you choose the best loan option. They can also provide valuable advice on:

• Pre-Approval: Getting pre-approved can strengthen your offer and streamline the home-buying process.
• Down Payment: Understanding the required down payment and exploring potential down payment assistance programs.
• Closing Costs: Anticipating and budgeting for closing costs, such as appraisal fees, title insurance, and property taxes.

4. Maintain Financial Stability

During the home-buying process, it’s crucial to maintain financial stability. Avoid making significant purchases or major life changes that could impact your credit score or income.

By following these steps and working closely with a real estate agent and lender, you can successfully navigate the home-buying process and achieve your dream of homeownership.

Partner with the Right Real Estate Agent

Choosing the right real estate agent is crucial to a stress-free home-buying experience. A skilled agent can provide guidance, negotiate on your behalf, and help you navigate the complex home buying process.

When selecting an agent, consider these factors:

• Experience and Expertise: Look for an agent with a proven track record of success in your desired area.
• Availability: Ensure your agent is readily available to answer your questions and address your concerns.
• Local Market Knowledge: Your agent should have in-depth knowledge of local market trends, neighborhoods, and school districts.
• Negotiation Skills: A skilled negotiator can help you secure the best possible deal.
• Client Reviews and Testimonials: Check online reviews and ask for referrals from friends and family.

Why Choose Potterton Rule?

Local agents with local knowledge that are committed to helping you find your dream home. We offer:

• Personalized Service: Tailored to your unique needs and preferences.
• Expert Guidance: Access to a knowledgeable team to help navigate the complex home-buying process.
• Local Market Knowledge: In-depth understanding of Southwestern Wisconsin Real Estate.
• Strategic Pricing: We’ll determine the optimal listing price to attract qualified buyers.
• Expert Marketing: Our marketing strategies will showcase your home to the right audience.
• Smooth Transactions: We’ll guide you through every step of the selling process.

Once those preparations are out of the way, it is time to find the right property for you.

Take a Drive.

Get to know the neighborhoods, complexes, or subdivisions, which interest you. Drive around and get a feel for what it would be like to own a property in the area. Start getting a sense of the properties available in those areas.

Narrow Your Search.

Select a few properties that interest you the most and have your real estate agent make appointments to visit them. Ask your real estate agent about the potential long term resale value of the properties you are considering.

• Budget: Determine how much you can afford to spend on a home.
• Lifestyle: Think about your current and future lifestyle needs, such as family size, work commute, and hobbies.
• Location: Prioritize neighborhoods based on factors like schools, amenities, and proximity to work.

Time to Buy.

Once you have picked out the property you want to purchase, your real estate agent can help you make an offer that the seller will accept. A good agent will investigate the potential costs and expenses associated with the new property.

The Process, Step-by-Step

The Initial Agreement and Deposit.

An effective agreement is a legal arrangement between a potential purchaser and the property’s seller.

Some important tips to keep in mind to streamline the process:

• Keep written records of everything. We will assist you in drafting all the paperwork for your purchase and make sure that you have copies of everything.
• Stick to the schedule. You and the seller will be given a timeline to mark every stage in the process of closing the real estate contract. Meeting the requirements on time ensures a smoother flow of negotiations so that each party involved is not in breach of their agreements. During the process we will keep you constantly updated, so you will always be prepared for the next step.

The Closing Agent.

Either a title company or an attorney will be selected as a closing agent. The closing agent will hold the deposit in escrow and will research the complete recorded history of the property to ensure 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 such as building or parking restrictions. There may be recorded easements and encroachments, which limit the rights to use your property.

How to Hold Title.

You may wish to consult an attorney or tax advisor on the best way to hold title. Different methods of holding title have different legal, estate and tax implications, especially when selling or upon death of the title holder.

Inspections.

Once your offer is accepted by the seller, you will need to have a licensed property inspector inspect the property within the time frame that was agreed upon in the effective contract to purchase. You may elect to have different inspectors inspect the property, if you wish to obtain professional opinions from inspectors who specialize in a specific area (eg. roof, HVAC, structure). If you are purchasing a commercial property, then you will need to have an environmental audit done on the site for the lending institution.

Depending on the outcome of these inspections, one of two things may happen:

1. Either each milestone is successfully closed and the contingencies will be removed, bringing you one step closer to the close, or
2. The buyer, after reviewing the property and the papers, requests a renegotiation of the terms of contract (usually the price).

Appraisal and Lending.

It is imperative that you 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. If the agreement is conditional upon financing, then the property will be appraised by a licensed appraiser to determine the value for the lending institution, via a third party. This is done so that the lending institution can confirm their investment in your property is accurate. Appraisers are specialists in determining the value of properties, based on a combination of square footage measurements, building costs, recent sales of comparable properties, operating income, etc. 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.

Property Insurance.

If you are obtaining a loan, you will be required by your lender to purchase a certain amount of insurance on the property. The value will depend on the lending institution and the purchase price of the property. You may be able to save hundreds of dollars a year on homeowners insurance by shopping around for insurance. You can also save money with these tips.

• Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium.
• Ask your insurance agent about discounts. You may be able get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire-retardant roofing materials. Persons over 55 years of age or long-term customers may also be offered discounts.
• Insure your house NOT the land under it. After a disaster, the land is still there. If you do not subtract the value of the land when deciding how much homeowner’s insurance to buy, you will pay more than you should.

Closing Day

If you have come this far, then this means that it is almost time for a congratulations, but not yet. Do not forget to tie up these loose ends:

Final Walk-Through Inspection.

More of a formality than anything, the final inspection takes place a day before, or the day of closing.

• Verify that all repairs and renovations have been completed.
• Ensure that the property is clean and free of debris.
• Check that all appliances and fixtures are in working order.

Home Services and Utilities.

We will provide a list of useful numbers for the activation of home services and utilities after the closing occurs.

• Notify Utility Companies: Contact your local utility companies to transfer service into your name.
• Schedule Installation: Schedule appointments for any necessary installations, such as internet or cable TV.

Be Prepared.

We are ready to assist you should an unforeseen issue arise, even at this last stage. Something at the property breaks down or other minor details – no need to worry. We have encountered these problems before so we know how to handle them efficiently and in a stress-free manor.

Preparing for the Closing

• Review the Closing Documents: Carefully review all closing documents, including the settlement statement, to understand the financial aspects of the transaction.
• Bring Required Funds: Have the necessary funds, either in the form of a certified check or electronic transfer, ready for closing.
• Collect Keys and Important Documents: At closing, you’ll receive the keys to your new home, along with any relevant property documents.

Post-Closing Tasks

• Change Your Address: Update your address with the post office, banks, and other important institutions.
• Homeowners Insurance: Ensure your homeowners insurance policy is in effect.

We’re Here to Help!

If you have any questions or concerns during the closing process or after you move in, don’t hesitate to contact us. We’re committed to providing you with exceptional service and support.