HOME BUYING F.A.Q.’S – RENTERS EDITION!!
It’s always a happy occasion when we can help transition a renter into a homeowner! It’s especially exciting when they get to purchase the home they already know and love. Here are some answers to frequently asked questions regarding buying the home you are renting.
I want to buy the home I’m renting! What do I do?
That’s awesome! Give us a call and we will handle everything from determining the value of the home, craft the offer, and even get you pre-qualified with a great lender.
How do you determine how much the home is worth?
We will perform a “market analysis” which looks at homes similar in size, age, and style to yours that have recently sold in the last 6 months or so. The homes that are the closest in proximity to yours and sold the most recently will hold the most weight. Typically these are homes within a 1 mile radius.
Do I get to choose what to offer?
Yes, of course! We will present you the information and give you lots of advice but ultimately you are in charge of how much you want to buy the home for. Ultimately, the price will come down to the appraisal once we are in the escrow process.
What about asking for repairs to be done and money for closings costs, etc.?
We will discuss all of these items with you and together determine the best way to approach any requests. The benefit of having us present the offer is that we already know the owner and the property and we are the best ones to get repairs completed during escrow.
Does it cost me any money to have you work with me?
Absolutely not! The buyer does not pay for anything and our services are completely free to you as our existing customer.
Can the seller take other offers, too?
Yes, of course! The seller has the right to accept any offer they like. We also have the obligation to present all offers we receive to the seller to review. This is why it is best to work with us closely so we can assure you have the best possible opportunity to buy the house over anyone else.
How do I know if I will qualify?
The first thing we will do is have our lender call you to see what you will qualify for. They are going to request the same type of information we asked for when you leased the home…paystubs, tax returns, credit report, etc. It’s important to get all the information they request as quickly as possible. You can have a pre-qual letter in as quick as one day! Once we have the letter, we can start writing up an offer for you.
What happens after we make the offer?
We will present it to the seller for acceptance. They will either accept the offer “as is” with no changes or the seller can “counter” our offer which means they want to change something such as the purchase price or request for credits, etc. This is very common and all part of the negotiating process!
If the owner counters, can we counter back?
Yes, of course! This is where it gets fun J There is no limitations on how many times we can go back and forth. Of course, you don’t want to annoy the seller or start nitpicking at every detail but we definitely will make sure that anything critical is agreed upon and we get the best deal we can for you.
What happens to my rental deposit?
Since you are not moving out of the house, there will be no move out inspection and you will receive your full deposit refund, which you can use to make improvements to the home, buy new furniture or whatever you like.
The owner has given me a notice to vacate. If we are in escrow, I can disregard that right?
Yes, of course. If you are in the process of purchasing the home you are living in then we will not require you to move out during this process BUT, if for some reason the sale does not go through you will need to vacate asap. No additional notice is required.
Do I need to pay rent during the escrow process?
Yes, you do need to pay rent as usual up until the day escrow closes. We will give you a proration for any rents you have paid for after escrow closes.
What if I want to buy a different house for some reason, can you still help me?
Yes, of course! Once you are pre-qualified to buy a home we can help you find one…again, at no cost to you!
What if my lease is not yet up?
This is case by case so talk to us about it! If you are buying the house you live in, it shouldn’t be an issue. If you are buying a new house and want to break your lease we can definitely help you as long as we are your representation so don’t let that be a roadblock to homeownership J
THE HOME BUYING PROCESS – STEP BY STEP
- GET PRE-QUALIFED BY A LENDER
- FIND THE HOUSE YOU WANT!
- MAKE AN OFFER
- OFFER GETS ACCEPTED
- AGENT WILL OPEN ESCROW
ONCE ESCROW IS OPEN, BUYER HAS 17 DAYS TO:
- GET A HOME INSPECTION
- TERMITE INSPECTION
- ASK FOR ANY REPAIRS AND GET THEM APPROVED
- GET UNDERWRITTEN LOAN APPROVAL
- GET THE APPRAISAL COMPLETED
The above is called your “contingency period” where the buyer does all of their “due diligence” to make sure they are satisfied with the home. You can back out of the deal without penalty if you discover anything that you would consider to be a deal killer about the house. Your agent and the lender will handle all of these for you!
Once you have completed all of the research on the home, we are ready to move forward!
- SIGN LOAN DOCS
- LOAN FUNDS
- TITLE RECORDS THE NEW DEED
YOU ARE NOW A HOMEOWNER!!!! WOOOOHOOO!!!!
So, that’s not scary or hard, right? Of course, there are things that can go sideways but that is our job as your agent to make sure that we handle all the nitty gritty, behind the scenes stuff so you can focus on the good stuff…like the new couch you’re gonna buy J
READY TO BUY? CALL US AT 909.947.9931 & we will get you going in the right direction!!