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What to Expect When Buying a Home

Updated: Mar 11


Buying a home can be a very challenging process - but it doesn’t have to be!


Allow Lion Heart Realty Group to walk alongside you in the process of buying the home that meets your needs. We can give you more insight on what to expect regarding the next steps of this exciting new chapter of your life!


Your Pre-approval

If you plan on getting a loan for the purchase of your new home you will need to get pre-approved by a mortgage lender. Before you start looking for a home, you will need to know how much you can spend. Lion Heart Realty Group can point you in the right direction when it comes to finding a lender! To get pre-approved, you'll need to provide some financial information to your mortgage banker, such as W2 statements, paycheck stubs, bank statements, your income and the amount of savings and investments you have. Your lender will review this information and tell you how much they will lend you. This gives you the price range you should be looking in.


Your expenses

Talk with us about what your target price is so we may start searching for properties that meet your needs. In the meantime, there are other expenses to consider that go into buying a home along with the actual cost of the home itself.


 The Earnest Money Deposit

Submitted with the offer, it’s normally 1-3% of the offer price. When the offer is accepted this deposit becomes part of the down payment. Down payment requirements are calculated as a percentage of the purchase price and vary by loan program and lender. Expect your mortgage lender to ask for anywhere from 3.5 to 20% down.



Home inspector fees 

These typically range from $300 to $500. Your cost will vary depending on the size of your property, and whether you order any special evaluations in addition to the standard inspection. Lion Heart Realty Group can advise you on pricing for your area.


Closing costs 

These include real estate tax payments, title expenses, and mortgage processing fees, among others. These can vary by locality and the price of your home. For the purposes of establishing a savings target, most experts recommend budgeting between 2 - 5% of your total purchase price.


Cash reserves

While not exactly an upfront expense, many lenders will require you to have a certain amount of remaining cash available at the time of closing as a stipulation of the loan. It's often based on your monthly mortgage obligation and a common range is 2 to 6 months worth of payments.


Title insurance

This can be a substantial expense. The policy covers any financial setback caused by unforeseen defects in the purchased property and home. The one-time title fee, including search and examination, averages around $340 for a $100,000 home but it's recommended that you check with a local title insurance agent ahead of time to effectively determine what you will owe before closing.



The lender's charge

This fee for processing the loan can be determined at the beginning of your buying process. Referred to as "points", these charges are expressed as a percentage of the total loan. For instance, three points equal to 3% of the borrowed amount. Points can also become a tool for negotiation with the lender and seller. In a buyer's market, home sellers will often agree to pay mortgage fees in order to close a deal.

Property Search

Start touring homes in your price range. Ask Lion Heart Realty Group about the house hunt mobile site that will allow you to search for properties and get extensive information on any property with the click of a button. It might be helpful to take notes on all the houses you visit as you will see a lot of houses. When touring properties, make sure to check out the little details of each house. For example, test the plumbing by running the shower to see how strong the water pressure is and how long it takes to get hot. It's also important to evaluate the neighborhood and make a note of things such as how much traffic the street gets or if there is enough parking for family or visitors.


Making An Offer 

Once you find a home you want to purchase, work with Lion Heart Realty Group to negotiate a fair offer based on the value of comparable homes in the same neighborhood. Once you and the seller have reached an agreement on a price, the house will go into escrow, this is the period of time it takes to complete all of the remaining steps in the home buying process.


Home inspection

The next step is to order a home inspection on the property to check for signs of structural damage or for things that may need fixed. Lion Heart Realty Group will help you arrange this inspection within the first few days of your offer being accepted. You will receive a report from the home inspector and will then review it with Lion Heart Realty group. You can then decide if you want to ask the seller to fix anything on the property before closing the sale. A day or two before the sale closes, you will have a walk-through of the house, which gives you a chance to confirm that any agreed upon repairs have been made.



Your loan

Lenders have a wide range of competitively priced loan programs and a reputation for exceptional customer service. You will have many questions when you are purchasing a home, and having an experienced, responsive mortgage broker assist you can make the process much easier. Every home buyer has their own priorities when choosing a mortgage. Some are interested in keeping their monthly payment as low as possible. Others are interested in making sure that their monthly payments never increase. While others choose a loan based on the knowledge they will be moving again in just a few years.


Appraisal 

Lenders will arrange for an appraiser to provide an independent estimate of the value of the house you are buying. The appraiser is a member of a third party company, it’s not directly associated with Lion Heart Realty Group. The appraiser will let all the parties involved know if you are paying a fair price for the home.



Close the Deal 

A few days before closing, Lion Heart Realty Group will contact the title company and the seller's agent to ensure that all the necessary forms and documents have been prepared. Lion Heart Realty Group will review the closing documents and let you know what additional forms and information you need to bring to the closing meeting. At closing, you will sign all the paperwork required to complete the purchase, including your loan documents. Lion Heart Realty Group will be present to advise and ensure that everything goes smoothly as you close the deal!


If you found this helpful, please let us know! Your feedback is how we grow! Share with friends and family to equip them for home ownership. If you need more information, please set an appointment with us at calendly.com/lionhrg. We always reply to texts, or messages on our facebook page. https://www.facebook.com/Lionheartrealtygroup

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