Mankato Real Estate

Hire a real estate professional:
The first step is to select a professional to help you find your dream home and fine-tune your financial expectations.  Working with a buyer agent is worth consideration since he or she is legally responsible for representing the buyer’s interest in a real estate transaction.  Before making a decision, however, have a Realtor® explain the pros and cons of using a buyer agent versus a sales or dual agent.  Your American Way Realty agent can guide you through every step to buying a home.

How Much Can We Afford?  Get pre-qualified!:
Lenders use established formulas for helping determine what price home you can afford to purchase. Depending upon the lender and the type of loan, you will be required to come up with 3 to 20 percent of the purchase price as a down payment on your new home.

Lenders apply slightly different formulas for determining your “total monthly housing costs” in order to establish your qualifications for securing a home loan. Some lenders figure in basic amounts for maintenance and utilities in addition to your Principal, Interest, Taxes and Insurance (P.I.T.I.) plus association dues, and any other fixed costs. Try my mortgage calculator to estimate monthly payments based on the price of a home, or to determine a price you can afford based on a monthly payment you can afford.

Pre-qualify for a loan:
You should get pre-qualified, which determines how much you can afford.  It allows you to move swiftly when you find the right home, especially when there are other interested buyers.  It also indicates to the seller that you are serious and really can afford to buy the property. The cost of receiving a pre-qualification letter from the bank of your choice varies and may be valid for a limited time.

Needs vs. Wants:
Create a realistic idea of the property you’d like to buy.  What features are most important to you?  Make two lists:  one of the items you can’t live without (need) and one of the features you would enjoy (want).  Refine the lists as you house hunt.  It is also helpful to search online to see what is currently available on the market.  Your real estate professional can then show you houses that meet your expectations.

Where To Live?:
Selecting a neighborhood that is compatible with your comfort and lifestyle is the next consideration. A variety of concerns will play into your decision about which neighborhood is right for you and your family.

You may consider

View Properties:
Now you’re ready to visit houses.  Ask your American Way Realty agent to arrange showings, and keep track of the properties you’ve seen.

Think Resale:
In some areas, a swimming pool actually detracts from a home’s value and makes it harder to sell.  In neighborhoods with two-car, attached garage, a single-car or detached garage may impact the home sale and future value.

Rate the houses you see:
After touring each home, write down what you liked and didn’t like.  Develop a rating system that will help narrow the field down.  For example, pick the house you like best on day one and compare all other houses to it.  When you find a better one, use the new favorite as the standard.

Make an Offer:
Once you’ve pinpointed your dream house, it’s time to get serious about the financial and contractual side of the purchase.  Your American Way Realty agent will be a strong advantage since you and the seller have different goals.

The Purchase Contract:
When you’ve made the decision to purchase a particular property, your American Way Realty agent will assist you in presenting an offer to the seller. Your offer to buy involves submitting a signed real estate contract that specifically states the terms and conditions upon which you would like to purchase the property. Your offer will generally be accompanied with a good faith deposit check for the seller, commonly known as an earnest money check. The seller may accept your offer as presented, or employ the option to “counter” your offer with slightly different terms, price, financing, or other conditions. Once both you and the seller have agreed to the terms of the purchase, you have both signed the document, and you have been notified of the seller’s acceptance (usually when you receive an actual copy of the contract) the document becomes a valid sale contract.

Finalizing your Mortgage Application:
Your complete loan application may include details about:
Total monthly income including alimony, child support, bank retirement, interest, dividend or trust income, etc.
Assets such as cash in banks, stocks, bonds, other property owned, vested interest in retirement plans, life insurance, automobiles, etc.
Anticipated housing costs.
Credit references.
Employment history.
The lender will carefully review the information provided by you in order to determine the risk in lending you money to purchase a home.

Accepted Purchase Agreement: get a home inspection:
After your offer is accepted, set up a home inspection.  American Way Realty agent can give you the names several reputable Inspectors to interview.

Closing:
At the closing or settlement, you and the seller will each have completed the conditions and met the terms pursuant to your contractual agreement and title to the property will be conveyed to you.

Your American Way Realty agent will have helped you through the countless of steps of closing, including handling of the many details such as:

Following the closing you will receive a final settlement for your records that clearly illustrates all the fees paid by you to close the contract.