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The Homebuyer Workshop - Takeaways from the event This past Wednesday’s Homebuyer workshop was great! We got to connect with the community we love and partnered with some of the best in the business. It is always fun working with people who share the same passion that we do and it is even better when they also happen to be our friends!
We were so fortunate to have Ryan from 701 Title, Katie from U.S Bank, and Erik Peterson of Proven Realty go over the ins and outs of homebuying. Many of us have worked in real estate for years, and STILL learned new information. We can’t wait to plan more of these and connect with more of our neighbors.
A major takeaway from this is to work with smart, local, hard-working people. While we often want to focus on touring homes and picking the right one out, we learned how critical the other steps are. Title, mortgage, and negotiations may not be the most interesting parts of real estate transactions, but they are hugely important.
- Title professionals like Ryan Geltel and the team at 701 Title comb through local records and make sure a property doesn’t have any liens, encumbrances, or other concerning legal issues. Someone can purchase a home and years down the line, learn that their property line is different than what they thought. Or that a construction company wasn’t paid for renovations done by the previous owner and now the current owner has to pay. Title professionals make sure everyone knows everything about the property, its history, and so much more. Because this step is so critical, having a trustworthy team you can lean on is key.
- Katie Brewer from US Bank provided insight on the complexities of home mortgages. Often, the interest rate that news anchors are shouting about will not be the one on your mortgage! There are loads of programs to help people purchase homes, especially in North Dakota. We learned about the abundance of down payment assistance that the state of North Dakota offers. Just another reason why we feel so grateful to live in this state! Working with a local who does this daily and navigates these programs routinely really helps get people connected and makes buying a home much more accessible. Katie also broke down key steps in preparing oneself for buying a home. There are easy ways to improve credit and many tips to ensure you get the best rate possible.
- Erik Peterson of Proven Realty reviewed the big picture of a home purchase. Throughout his time working in the Bakken, he has seen the market go through a multitude of changes. This experience has provided him with unique insight on what it takes to succeed in real estate investing and the homebuying process. He discussed common questions and pitfalls of first-time and subsequent home purchases. What is the first step? Who do you need to contact? How can you get a good deal? What are contingencies / appraisals / inspections and how are they done? Below is an overview that clearly lays out this normally complicated process. The homebuying journey by Erik Peterson;
Here Erik discussed the 12 steps of the homebuying process.
Do your initial search - Be Curious start your research phase right
Review your finances - Decide on how much you're able to spend on your new home.
Hire the right real estate agent - Research different companies and agents in your area. Speak with them and work with someone you can trust.
Get pre-approved - Speak to different financial institutions and pick out a loan officer to work with. Gather paystubs, tax filings, and figure out how much you can get a Pre-Approval for. You may want to work on improving your credit score in order to get a better interest rate for a mortgage. A loan officer can help provide guidance on how to do this.
Schedule a home tour - This is the fun part! After narrowing down your list of potential homes / properties online, tour the home with your realtor. Explore the neighborhood during different times of day.
Make an offer & negotiate terms - Be involved, say what's on your mind! Your realtor will work with you to develop a strong offer. The goal is to get the house you want without paying more than it is worth. A good realtor can provide a CMA (comprehensive market analysis) that gives insight on the home’s value. They will also help you develop terms and contingencies in the offer to protect you, your finances, and your potential purchase.
Inspections - Your real estate agent will likely have a list of home inspectors available for you. These are real estate professionals with a strong knowledge of construction. They will comb through the home to make sure it is in good shape. You will get a detailed report of the major appliances, the structural integrity, and any issues they discovered. Some buyers choose additional inspections to be done, this can be discussed with your realtor to determine if any additional ones are recommended.
Buyer's due diligence - The due diligence period provides time for the home inspection and report review, HOA documents to be obtained and reviewed (if applicable), and for verifying any other critical details of the property and purchase.
Title - This is when the Title professionals review all of the property’s records and develop a report including the legal property description, ownership interest, and any easements, liens, or encumbrances on the property. This is a critical step to protect your home purchase and yourself.
Home appraisal - A home appraisal is ordered by the mortgage loan officer. This is a person who tours the property, reviews comparable properties, and determines a value of the home. The mortgage servicer uses this information to come up with the final loan amount. If there happens to be a discrepancy between the sale price / negotiated offer and the appraisal, your realtor can help discuss options such as challenging the appraisal or renegotiating the offer.
Final walkthrough - This is your last chance to walk through the home and make sure it is still in good condition. If there were any property improvements to be made based on the inspection / appraisal / negotiations, this is the time to ensure they were done.
Closing - The best part! All of the time and hard work has led to this. Do some hand stretches because you will be signing document after document! At the end, you get the keys to your new home and it is time to move in!
Click here to view full presentation. Tune in with us for this is just the beginning of our quarterly workshop, follow us on our social media accounts to be updated on our next homebuying workshop! Proven Realty
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Call us: 701-380-4816
3210 27th St W, Suite 207, Williston, ND 58801