Purchasing a home is one of life’s most rewarding experiences as well as a major financial investment. When you work with Michael Saunders & Company, you benefit from the support of a trusted and respected industry leader deeply rooted in the community.
Our real estate agents have extensive local knowledge and offer a full-service approach to help guide you throughout the homebuying process. When considering buying a home, having a trusted local advisor at your side, providing expert guidance and exceptional support, will ensure a successful experience.
This buyer’s checklist offers a clear snapshot of the essential steps involved in buying a home from beginning to end.
First Steps 1
INITIAL BUYER CONSULTATION
n Connect with a licensed Michael Saunders & Company real estate agent who is knowledgeable about the areas and markets you are considering
n Together, you and your agent will clarify your wants and needs, desired features and amenities, any specific must-haves or deal-breakers, unique circumstances or considerations, and your timeline for buying a home
n Your agent will review the homebuying process with you
n In your buying consultation, your MSC agent will review the required Buyer Broker Agreement with you. This document highlights the services that will be provided to you, establishing compensation and transparency from the onset
DETERMINE YOUR BUDGET & GET PRE-APPROVED
n Your Michael Saunders & Company agent can help you connect with a professional mortgage consultant at MSC Mortgage to discuss the various financing options available to you
n Getting pre-approved gives you a clear understanding of your purchasing power and strengthens your position when making an offer on a home
n Even if you obtain your pre-approval from a different lender, our in-house mortgage team at MSC Mortgage can review your offer to ensure you’re getting the best financing option available, using their Second Look program
n When seeking pre-approval, you’ll typically need to provide the following documents:
n Pay stubs from the last 30 days
n Federal tax returns and W-2s from the past two years
n Bank statements for checking, savings, and investment accounts from the past two months
n Identification to verify your income, assets, and identity
n Consult with your agent for insights into market trends and pricing in your desired area, ensuring you make an informed decision
ADDITIONAL FINANCIAL CONSIDERATIONS
In addition to your down payment and monthly mortgage payments, it’s important to factor in the following costs:
n Closing costs, which can include appraisal fees, property taxes, homeowners insurance and other loan-related fees and real estate commission fees
n Homeowners association fees, condominium fees, or maintenance costs
n Moving-related expenses and household setup
The buying process 2
LOCAL EXPERTISE
When buying a home, it’s important to make sure you’re working with a local realtor. Your Michael Saunders & Company real estate agent has:
n Extensive knowledge of the local area’s real estate market
n Familiarity with area neighborhoods and school districts
n Established connections with local industry professionals
n Immediate access to what is currently available on the market, including homes listed by other realtors.
n The ability to search for off-market properties
n Tools and resources to streamline the homebuying process
CONDUCT A HOME SEARCH
Now’s the time to start exploring homes. With your Michael Saunders & Company real estate agent by your side, you will:
n Review all the inventory available in your price range
n Visit homes best suited to your needs, size, style, features, and location
n Assess a home’s proximity to work, schools, shopping, transportation, restaurants, entertainment, etc.
n Consider neighborhood characteristics such as safety, amenities, traffic noise, and any proposed zoning changes that may affect your decision
n Receive information on real estate values, taxes, utility costs, and municipal services
WRITE AN OFFER
n Your Michael Saunders & Company agent will provide research from comparable sales in the surrounding area to help you determine the best offer
n As your offer could be one of several submitted to the seller, your agent will guide you on making an offer that is strong and appealing
n Determine your earnest money amount - your Michael Saunders & Company agent will explain earnest money and deposits into escrow accounts
n Consider contingencies like home inspection, financing, and appraisal
n Be prepared if proof of funds is requested by the seller for the deposit and the down payment or cash offer
n The seller may return with a counter-offer regarding price and terms, which you can accept, reject, or make another counter-offer
n Your Michael Saunders & Company agent will work with you and negotiate to reach satisfactory terms
n Once your offer is accepted, it becomes a Purchase Agreement, which outlines the terms and conditions of the real estate transaction
Once you are under contract with the seller, there are several important dates to keep in mind, but five of the most crucial ones are:
n Deposit deadline date
n Inspection period deadline date
n Appraisal deadline date
n Loan approval date
n Closing date
FINANCING YOUR HOME
Pre-approval is a good indicator of your ability to afford a home but does not guarantee the loan. Once the seller has accepted your offer, you’ll begin the formal mortgage application process.
n Submit your mortgage application with all supporting documentation to your MSC Mortgage loan officer or lender upon receipt of the fully signed Purchase Agreement
n Work closely with your lender to provide any additional information or documentation they may require to process your loan application in a timely manner
n Your Michael Saunders & Company agent will contact the lender weekly to ensure processing is on track
WHAT NOT TO DO WHEN APPLYING FOR A MORTGAGE
n Change jobs, quit your job, or become self-employed
n Excessively use credit cards or fall behind in payments
n Buy a new car, boat, or furniture
n Dip into the money you have set aside for closing
n Change bank accounts
n Co-sign a loan
n Cause any inquiries into your credit, such as opening new credit card accounts
n Omit any debts or liabilities from your loan application
n Make large, non-payroll deposits
n Always consult your lender for advice should any of these scenarios be unavoidable
ARRANGE FOR HOME INSPECTIONS
n Home inspections are important for risk mitigation
n Your Michael Saunders & Company agent will recommend licensed home inspectors and home repair contractors
n As the buyer, you will choose the inspector, schedule, and pay for the inspections
n Your agent will review the inspection reports, recommend a follow-up inspection to address issues noted in the report if needed, and prepare a request for repairs for the sellers’ consideration
GETTING AN APPRAISAL
Lenders rely on professional home appraisals to determine whether the home is at least equal to the value of the agreed-upon price.
n If you have applied for a mortgage, a licensed appraiser chosen by the lender will conduct a thorough inspection
n The appraiser will compile their findings into a report and generate the home’s appraised value
n If the appraisal comes in low and your contract with the seller was contingent on an appraisal, your Michael Saunders & Company agent will help you pursue additional options to move the sale toward closing
ACQUIRE HOME OWNERSHIP INSURANCE
n Most lenders make securing homeowners insurance a condition of giving you a mortgage
n Your agent can put you in touch with our in-house insurance team for a quote
n Flood insurance may be required by your lender depending on the flood zone designation of your property. Our insurance team can provide you with a flood insurance quote and peace of mind
3The closing process
TITLE INSURANCE
Obtaining title insurance is common practice and covers things that occurred in a property’s past, such as another person claiming an ownership interest, improperly recorded documents, easements, fraud or forgery.
n With MSC Title, every detail will be handled with accuracy and timeliness to ensure a professional closing
n Talk to your Michael Saunders & Company agent or visit MSCTitle.com for a quote or to order title insurance
n Title insurance rates are regulated by the state. Your MSC agent can provide you with a title rate chart
FINAL STEPS OF THE BUYING PROCESS
Make sure your finances are in good stead. If you are closing with a mortgage, avoid making large purchases or opening new accounts before your loan is approved.
n You will receive the Closing Disclosure Statement prior to closing; thoroughly review this statement with your Michael Saunders & Company agent
n If you are getting a loan, compare the disclosure statement to your loan estimate form and ask your lender about any discrepancies
n Be prepared to wire funds for closing in a timely manner, the amount of which will be in the Closing Disclosure Statement. Do not wire funds without first verifying the instructions directly with your lender or closing agent to avoid potential fraud
n Your Michael Saunders & Company agent will coordinate a time to perform a final walk-through with you. This is your last chance to visually inspect the property before closing and gives you the opportunity to do the following:
n See if anything has changed on the property
n Confirm any agreed-upon repairs have been made
n Confirm all agreed-upon items that are to be conveyed with the home are still there
CLOSING DAY
Here is what you need to bring and what to expect:
n Bring proof of homeowners insurance (if financing), a copy of the contract with the seller, your home inspection reports, and a government-issued photo ID
n There will be numerous legal documents to sign
n Closing funds will be wired, or a cashier’s check provided, and property ownership will be officially transferred to you
n You will be handed the keys to your new home, along with copies of signed documents
n If you are not in town for the closing, a mail-away closing can be arranged
n And most important - CELEBRATE!
CONTINUED SUPPORT
n Your Michael Saunders & Company agent will check in with you to make sure the transition to your new property is a smooth experience and answer any questions
n Your agent can provide a list of local professionals or services for any renovations or repairs you may want to make
n Michael Saunders & Company real estate agents build relationships with their clients. Your agent will keep in touch with you and offer assistance as our commitment to exceptional service extends beyond your purchase
4
Moving out tips
SEVERAL WEEKS BEFORE MOVING
n Hold a garage sale to dispose of unwanted items
n Donate unwanted goods and get receipts for tax deductions
n Get written estimates from moving companies
n Schedule termination of utilities for your current home and set up accounts for your new address
JUST BEFORE MOVING DAY
n Make a “survival box” that includes paper, pens, tape, scissors, tape measure, screwdriver, cleaning supplies, paper cups, Ziploc bags, garbage bags, toilet paper, paper towels and plates, plastic utensils, snacks, and drinks
n Buy packing tape, bubble wrap, and boxes
n Number your boxes and write a general list of what’s in them
n Label boxes by which room you want them placed in by the movers
n Pack “Open-First” boxes you’ll need during the first few days in your new home
n Take photos of electronic hookups
n Measure rooms in your new home for furniture layout
n Drain fuel from lawnmowers and other machinery
n Confirm date and arrival time with movers
n Visit USPS.com/move or local post office to change your address
n Plan moving-day care needs for children and pets
MOVING DAY
n Organize the order in which boxes should be loaded onto the truck – items you need the least should be loaded first; the last items loaded should be “ Open-First” boxes
n Take photos of any damage that may occur from movers
n Personally transport jewelry and important documents like birth certificates and passports
n Set thermostat in home at a comfortable setting
n Leave keys and garage door openers in the house for the new owner, along with any appliance warranties and notes
5Moving in tips
MOVING DAY
n Be present at your new home to accept delivery from the movers
n Post a floorplan at the entry to help movers properly place furniture and boxes
n Set up children’s rooms first to help them settle in
n Change locks and make multiple keys for your new home
n Introduce yourselves to your new neighbors
AFTER MOVING INTO YOUR HOME
n Visit mydmvportal.flhsmv.gov or go to the Department of Motor Vehicles office to update your driver’s license and car registration
n Register your pets
n Activate appliance warranties
n For a primary residence, file for homestead property tax exemption online or at your county property appraiser’s office
TO DECLARE RESIDENCY IN FLORIDA AND PROVE HOMESTEAD EXEMPTION (FOR TAX SAVINGS), DO THE FOLLOWING:
n Update your mailing address to your Florida address
n Obtain a Florida driver’s license
n Register your vehicle in Florida
n Open bank accounts with a Florida bank
n Register to vote (and vote)
n Use your Florida address on tax returns
n File for Florida Declaration of Domicile
n For a primary residence, apply for Florida Homestead Exemption
Congratulations!
You are now officially the owner of your new home. It’s time to settle in, start enjoying your new space, and create life-long memories.
