Steps in buying a house

When most people first decide to buy a house, they probably have no idea of all the ins and outs of the entire process. It's hard to know exactly where to turn to for good sound advice. Many people choose their parents, But if your parents aren't that clued up and you don't trust the advice of experts who have a vested interest in helping you through your first deal, it can be hard to know where to look for helpful and thorough advice.

Here ten (easy) steps that should cover the major things that you will have to do in order to buy a home for the first time. Bear in mind that if you are trying to sell your house at the same time, it can be a whole different ballgame, as a hair-pullingly large number of additional obstacles will be present to encourage you to pull your hair out in exasperation.

1. Decide to buy
For heaven's sake, make sure it's the right decision! It's going to take a lot of time and effort and be more than a little bit stressful. Only start down the road if you know you want to get to your destination. Call your personal concierge Sandy Bliven at 401-286-2571

2. Plan your purchase
Do your homework and you will be more prepared for all eventualities. Know what your budget is and make sure that you can really afford it. This means thinking about all the money you will spend over the course of the move and what your repayments will be in the future. You should also plan your move well in advance as there are a boggling number of things to remember to do. Obviously we've thought about as many of these as we could and have written them all down for you in a section appropriately entitled 'Move'.

3. Apply for a mortgage
Getting an agreement in principle can help strengthen your case when you get to the negotiating table. Call Province etc

4. Find a home
It is pretty hard to buy a home unless you have found one that you want to purchase. It can be a hugely time consuming and arduous task, so we've prepared an ample amount of information to help you through the househunting process.

5. Negotiate and make an offer
This is not as easy as it seems. There is quite a lot to be learnt about the art of negotiation. Agree on an offer, fill out a purchase and sales agreement, sign disclosures, sign buyer’s agency agreement, give agent a good faith deposit check, usually $1000.00, then in ten days, another 4% additional is usually required. When offer is accepted, seller signs the Purchase and Sales agreement or he counter offers. Once the price is agreed upon, the purchase and sales agreement is signed, deposit check is given to the listing agent and the next process beings.

6. Complete the mortgage application
Once the survey or valuation has been completed, you can get confirmation from your mortgage lender that they will be willing to loan you the sum that you need to purchase the property.

7. Exchange to completion
Once you have had confirmation in writing that your offer has been accepted, the property has been taken off the market, the survey or valuation has been carried out, your mortgage offer has been finalized, then everything is set and you're on the home straight. But until you actually exchange contracts there are still ways in which the purchase can go wrong.

8. 10 days for home inspection The purchase of a home is one of the biggest investments people will make in their lifetimes. But it is also among the greatest sources of anxiety. A home inspection helps ensure homebuyers of the quality of their investment by making them aware of its condition and alerting them to any concerns. This can serve to relieve stress, increase confidence and even reduce the threat of legal action in the future. We cannot emphasize enough the value and necessity of an extensive home inspection. Many home purchasers, either in the desire to save the $200 to $500 that a good inspection costs, or due to simple ignorance, have spent enormous sums of money repairing items that any good home inspector would have pointed out. Any offer to purchase you make should be contingent upon (subject to) a whole house inspection with a satisfactory report. Do not let anyone--not the agent, not your family or friends, and especially not the seller--dissuade you from having the property thoroughly inspected! Not only will you sleep much sounder after you have moved into the house, a professional inspection can give you an escape hatch from a contract on a defective house. If the contract is written contingent on an acceptable inspection, any defects in the home must be either repaired or monetarily compensated for. If you are not satisfied, you have the option to cancel the contract.

Inspections are designed to disclose defects in the property that could materially affect its safety, livability, or resale value. They are not designed to disclose cosmetic deficiencies (for example, an interior wall that needs paint touch up). You will need to determine on your own those type of items that will need attention: don't expect a whole house inspection to reveal them to you.

Don't wait until you have placed an offer on a house before you begin the search for a home inspector. There will be a time limit in the contract designating when the inspection must be completed (typically between 7 and 14 days). If you start trying to find an inspector at that point, and cannot find an acceptable one to schedule it in that time frame, you will only have two choices: go with an inspector that is not your first choice, or run the risk of running past the deadline for the inspection (which could void any chance having the seller take care of repairs). Neither is an acceptable alternative! Call Inspection COMPANY LINK

9. Call Moving Company Call SO AND SO

10. Get Homeowner’s Insurance you pay cash for your home, one of the requirements that will be made by your lender is proof of a valid homeowners insurance policy, secured before closing. This policy will protect both your investment as well as the lender's (and, in the beginning of the loan, the lenders investment in the total value of the home is much higher!) Here is a general overview of the protections offered by your Homeowners Insurance. Call to fill in later

Friends, family, the phone book and Internet are some of the sources you can use to find homeowners insurers. Get a wide range of prices from several companies. But don't consider price alone. The insurer you select should offer both a fair price and excellent service. Quality service may cost a bit more, but you buy insurance in case you need to make a claim, so it's important to get a company with a good reputation. Talk to a number of insurers to get a feeling for the type of service they give. Ask them what they would do to lower your costs.

Check the financial ratings of the companies with AM Best or Standard and Poor's. Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay. Deductibles on homeowners policies typically start at $250.
Increase your deductible to:
$ 500 -- save up to 12 percent
$1,000 -- save up to 24 percent
$2,500 -- save up to 30 percent
$5,000 -- save up to 37 percent
Depending on your insurance company.

Some companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them.

Consider how much insuring it will cost.
A new home's electrical, heating and plumbing systems and overall structure are likely to be in better shape than those of an older house. Insurers may offer you a discount of 8 to 15 percent if your house is new.
Check the home's construction: In the East Brick, because of its resistance to wind damage
Choosing wisely could cut your premium by 5 to 15 percent.
Avoiding areas that are prone to floods can save you about $400 a year for flood insurance. Homeowners insurance does not cover flood-related damage. The closer your house is to firefighters and their equipment, the lower your premium will be.

The land under your house isn't at risk from theft, windstorm, fire and the other perils covered in your homeowners policy. So don't include its value in deciding how much homeowners insurance to buy. If you do, you'll pay a higher premium than you should. You can usually get discounts of at least 5 percent for a smoke detector, burglar alarm, or dead-bolt locks.
Some companies offer to cut your premium by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police station or other monitoring facility. These systems aren't cheap and not every system qualifies for the discount. Before you buy such a system, find out what kind your insurer recommends and how much the device would cost and how much you'd save on premiums.

Smoking accounts for more than 23,000 residential fires a year. That's why some insurers offer to reduce premiums if all the residents in a house don't smoke.

If you've kept your coverage with a company for several years, you may receive special consideration. Several insurers will reduce their premiums by 5 percent if you stay with them for 3 to 5 years; by 10 percent if you remain a policyholder for 6 years or more.

You want your policy to cover any major purchases or additions to your home. But you don't want to spend money for coverage you don't need.

If you live in a high-risk area --- one that is especially vulnerable to coastal storms, fires, or crime --- and have been buying your homeowners insurance through a government plan, you should check with an insurance agent or company representative. You may find that there are steps you can take that would allow you to buy insurance at a lower price in the private market.

10. Closing
After the searching for a home is done, the negotiations have been completed, the house has been inspected, and the mortgage has been applied for and committed to, the focus suddenly turns to the Closing, Settlement, or Escrow as it is known in some localities. For simplicity, in our discussions here we will refer to the process when it all comes together and you finally own the home as Closing. An understanding of the elements of and players in the closing, as well as a concise preparation for it, will eliminate many nervous hours as the day approaches. Call PYRAMID

It is the proverbial "signing on the dotted line:" the process of which will put the title to the house in your name, verify homeowners' insurance on the property, commit in writing to the terms of the mortgage, and usually, put the keys to the house in your hands. In general, you will leave the closing and go to your new home as a homeowner. The weeks and months of anticipation are all settled in the short amount of time that you spend at the closing.

Closing procedures will vary from locality to locality. In some areas, the buyers and sellers (as well as their Real Estate Agents) will all attend the closing. In other areas, only the buyers will be present. The closing will take place at the office of an Attorney, a Title Company, or an Escrow Company (again, there is some variance here based on your local laws and tradition). In general, though, the closing will be attended by all of the buyers involved and their Real Estate Agent, as well as the Closing Agent, who has reviewed all of the components of the house sale and who is the one who will say "sign here" more times than you have ever heard in your life. Call Attorney

The following are the most important items that you will need prior to or at closing and some hints regarding them:

A Closing cost estimate: This should first be given to you by your Agent at the time of the contract, and then given to you by the Lender, a Good Faith Estimate, shortly after the application for the loan. This should give you a reasonably close estimate of funds you will need at the time of closing.

Homeowners' Insurance Policy: This must be secured prior to the date of closing.

Settlement Statement: You should have a copy of the Settlement Statement before the date of Closing. Generally this will not be available until one or two days prior to the actual Closing, but it is important to have it because it gives you the total amount of cash you will need at Closing and also how those various funds will be dispersed. In addition, it gives you an opportunity to iron out any discrepancies prior to sitting down at the Closing table. Your Agent should also have a copy for review.

Certified Funds: On the day of Closing you will need certified funds for closing costs and down payments. This is an important reason for needing a copy of the Settlement Statement a day or two in advance--so you know the amount of funds needed and so that any problems can be handled in advance.

By making adequate preparations in advance, you will be far less likely to have nasty surprises when everyone (especially you!) is ready for closing.

11. Move in …………….. plan the party and don’t forget to invite Your Network Team, Shop under one Roof!

Pour the wine……