21 STEPS TO BUYING A HOME IN MERIDIAN MISSISSIPPI

Call & visit a Professional Realtor.

QUESTIONS TO ASK & INFORMATION TO BE PREPARED TO GIVE

1. Do you belong to a Multiple Listing Service?  This will determine if the Agent can show you properties other than just the ones their office has listed for sale.  This will increase the probability that the Agent will find the right home for you quickly as well as allowing you to work with just one Agent instead of having you duplicate your efforts.

2. Will you be able to accommodate my time schedule for showing?  If you can only look at certain  times you want to be sure the Agent you choose to work with will be available to show you homes at those times.

3. Do you have a Buyers Information Package to help me understand this process?  The Agent should be able to provide you with some printed materials on how the buying process works as well as information on homes in the area.

4. Be prepared to discuss what you want & need in a home.  Know that there will be a number of features you will want but might not need.  Including not just # of Bedrooms & Baths, but also yard size, location, eat-in kitchen or formal dining room, that kind of information.

5. Be prepared to discuss your current and past financial condition.  Understand that the Agent isn’t being nosy; they need to know how much home you can afford & what size house payment you will be comfortable with.  Also, your Agent will know what loan products might be available to you.  If you wish to go directly to a Lender to get qualified for a loan before working with a Real Estate Agent then you will simply need to provide the Agent with the name of the Lender and the price range you want to buy in.  You can begin the loan process even before you find a home & this will make the process go faster after you’ve found the home you want.

6. Be prepared to sign an Agency Disclosure.  Mississippi State Law requires that a Real Estate Agent Disclose to you who they are working for: the Buyer or the Seller.  The agent will explain to you how Agency works & answer all your questions about Agency and Representation.  They will then ask you to sign the Agency Disclosure form, which proves that Agency, was explained to you.  It does NOT obligate you in any way.

7. Be ready to spend some preparation time with your Agent in the office.  This is one of the biggest purchases of your life, don’t rush it!  Getting to know your Agent and understanding the process may take an hour or so, but once the foundation is laid, so to speak, the fun part starts!

8. Looking at Homes.  When you get ready to actually look, be prepared! Your Agent should provide you with printed info on the house you’re looking at so you can make notes of what you like and don’t like.  Review these notes with your Agent.  After looking at a few homes you may change your mind about some of the items you thought you really wanted.  Be sure to keep communicating with your agent at every home, it will make the looking easier & more productive.

9. Children and House Hunting.  If you have the option of leaving your children with someone while you look, it will be easier for all of you.  You will want their input if they are older but bring them to see the homes that you are seriously considering, don’t make them look at everything.  Most kids are bored with house hunting and when kids are bored you know what happens!  It makes it very difficult for the parent to focus completely on looking at the house.  If, however, you need or want to bring children when looking for a home please lay some ground rules.  Remember these are people’s homes we are visiting & not places to play.

10. Finding the right home and making an offer.  When you find the house you want to buy tell the agent you want to make an offer.  Sit down with the Agent & be sure you know all the particulars of the property you want to buy, such as: School district, Flood Zone Status, Homestead Filed, etc.  You will also review the Sellers Disclosure that the property owners have provided.  If you have any questions get the agent to secure answers for you.  Be sure you have a cost sheet filled out so that you will have a good idea of the costs you will be responsible for.  You need to know BEFORE you make an offer that you can pay what will not be financed.  You also need to be prepared at the time of writing the offer to give the Agent Earnest Money.

11. Earnest Money.  Earnest money is what we call money deposited with the Agency working with the buyer, to show the Buyers good faith.  The Earnest money is retained by the Agency on behalf of the Buyer.  It remains the Buyers money, to be used for his expenses at the time of closing.  If the Buyer is turned down for financing, the house doesn’t pass inspection & the Seller won’t fix it, or the house doesn’t appraise, if any of these things happen & and closing doesn’t take place, the Buyer will be refunded the Earnest Money.

12. Can a Buyer lose Earnest Money?  A Buyer will forfeit his Earnest money if he changes his mind, after the Offer has become a contract, and decides not to go through with the sale.  Please note that Earnest money given in the form of cash will be deposited in the Agency’s Trust Account immediately.  Please ask your Agent to explain fully if you have any questions.

13. What about the condition of the house?  You should also decide now if you want any outside expert inspections on this property, if so put it in the contract.  These inspections need to be done ASAP so that if anything turns up you & the Seller will have time to work it out or you will be released from the contract.  Inspections may include, but are not limited to, electrical, plumbing, & structural.

14. The Offer Process.  The Agent that writes the Offer for you will take it to the Listing Agent of the home you want to buy.  The Listing Agent will then take it to the property owners.  The owners, upon receipt of the offer, can react several ways.  One way would be to accept the Offer exactly as presented, another would be turn it down and the most common reaction is to make a counter offer.

15. The Counter Offer.  When an owner decides to negotiate with the Buyer on the purchase of the home they do this by making a Counter to the Buyers original Offer.  In effect this then becomes an Offer from Owner to the Buyer.  This Counter Offer is given to the Listing Agent who then gives it to the Agent working with the Buyer.  The Buyer now has the same options that the Owner has: accept, reject, or counter.  Once the Buyer & Owner have agreed to price & terms & have both signed the Offer it is then considered a Contract.

16. A Working Contract.  When an Offer becomes a Contract the Agency must deposit the Buyers Earnest Money check in the Trust Account.  Discuss this with your agent and be sure that you understand.  There is usually a clause within the Contract that requires a Buyer to go to the lending institution and apply for a loan within 5 working days.  Be sure the Agent knows which Lender you are going to use.  If you are going to pay cash for your new home be prepared to verify the existence of your funds.

17. The Loan Process.  When you have a Contract and have chosen a Lender you will need to take the Contract to that Lender and move forward with obtaining the loan.  The Lender will, depending on the type of loan you choose, need to accomplish many things before the loan can close and you can move into your new house.  For Example: the Lender must verify your employment history and wages, they will need to do a credit report, once at the beginning of the loan & again just before final approval, they will verify your debts and payment history as well as many other things.  Don’t let it throw you, the process usually takes about 4 weeks, again, this depends on what type of loan you’re going for.  Some loans take a much shorter time.  Speak to your Agent & Lender to determine what will be the best loan for you.

18. The Home.  During the time following final signing of the Contract, you aren’t the only one being looked over.  So is the house you are buying.  With most loans the house has to pass what is known as an appraisal.  An appraiser does 2 things.  He determines what he believes to be the fair market value of the house and he notes any concerns he may have over the condition of the property.  He may, if he believes there are serious problems, require repairs be done to the home before releasing the appraisal.  A Lender will not loan money to buy a house if an Appraiser is holding the appraisal, pending repairs, until the repairs have been made and the Appraiser signs off on them.

19. You Passed, the House Passed, now what?  There are still a few loose ends to tie up.  If you haven’t already made arrangements for insurance on the new house you must do so.  You must inspect the house one last time to be sure everything is the way you expect it to be.  If there has been any damage or anything is not working, as it should be these things must be addressed prior to closing.  Make sure the Seller will be vacating the premises & the premises will be ready for your move as agreed upon in the contract.  Be sure you know the exact time, date, & place of the closing.  Your Agent may want you to come to the Real Estate Office prior to closing so that they can go over some of the paperwork with you before going to closing.  Be sure you know how much money you may owe at closing and how that money can be paid, i.e. personal check, cashiers check, etc.

20. What happens at Closing?  You, your Agent, the Seller & their Agent will all meet at the Closing Attorneys Office.  The Attorney will review all the closing documents with you including what you need to pay now.  You will sign the mortgage or Deed of Trust (the legal document giving the lender the right to take back the property if you do not make your payments) you will also sign the Mortgage note, (the promise to repay the loan in regular monthly payments of a certain amount).  You will then be “loaned” the money to pay the seller for the house (a check from the bank made out to you & the Attorney which you will endorse).  The title passes from the seller to you in the form of a Deed.  The attorney will collect closing costs & give everyone a HUD 1 Statement (shows how all the funds in this transition have been disbursed).  The mortgage and deed will then be recorded at the Courthouse.

21.  Are we done yet?  It depends.  If you are taking possession of the home immediately then be sure you have gotten the keys, garage door openers, etc.  Remember to have all utilities placed in your name to take effect either the day of closing or the day the Sellers are to be moved out if they move after closing.   If you can arrange to move in a day or two after the Sellers vacate then you will have time to clean or get your home professionally cleaned.  It’s easier when the furniture is not in the way.  Your agent has been through this before and will be able to provide you with some good tips.

 CONGRATULATIONS! YOU ARE A NEW HOMEOWNER!

Please note this document is for informational purposes only.  Your experience may vary from the outline above. 

Century 21 Howell Realty does business under the Federal Equal Housing Opportunity Law.  

Each office is independently owned and operated.