I’m a photographer, but chatting with so many couples throughout the years I know another thing normally on their mind during the wedding planning season is this… buying a home.

Sometimes it’s after the wedding, sometimes it’s before. In some cases, our couples already have a home together but our readers range from all over so I know this educational blog post could possibly benefit multiple individuals!

Below is written by Alice Broadway, local Real Estate agent.

So you’re getting ready to buy a home! Congratulations! As a Realtor, the most common question I first receive from a buyer is “Where do I start!?”

Whether you are a first time home buyer or a current homeowner, the first thing you need to do is, contact a lender or bank and get pre-qualified for a home loan. Many banks and credit unions are willing to help you without any upfront cost. Most of them will take an application over the telephone and let you know within 24 hours or less if you qualify to buy a home. If you need assistance finding a lender along the Alabama & Mississippi Gulf Coast call me, I have worked with many lenders over the years!

Getting prequalified will be based on your employment, your income, your expenses, and your credit score. Lenders base your loan on these issues, and also what your net to income ratio is at. After your lender approves your loan they will tell you the maximum price range of the homes you need to be looking at. You don’t have to purchase a home with the maximum amount, this is just the amount you can’t go over. They will also go over all the different type of loans available and explain the type of loan that will best suit your financial situation. The most common type loans include FHA, VA, USDA, and conventional, but there are also loans to help make repairs or upgrades to a home. Once your lender gives you a pre-qualification letter, you are ready to start your home search and rest assured, without a doubt you can purchase the home you find.

The next thing you need to do is, find a local realtor who knows the area where you want to buy. They will help you from start to finish, be available to answer all your questions and show you homes that meet your criteria. With today’s technology and smartphones, it’s easy to search for homes on the internet even before you contact a realtor. Although you will need a local real estate professional to schedule showings and to view the homes. Two of the most popular website and apps you can use, to search for available homes are Zillow.com & Realtor.com. The Zillow app is extremely user-friendly, although it’s not as accurate and updated as the realtor.com site. Realtor.com site is updated every 15-20 minutes daily, therefore, making it more accurate. Also, the realtor you hire should have a website you can use to search for homes within your price range, style, bedrooms, baths, and several other amenities. The real estate agent should explain to you how they will be representing you, and looking out for your best interest. The majority of realtors will work for you without an upfront cost to you. Their fee is usually paid for out of the sellers’ funds at closing. There may be a small transaction fee between $250.00 – $500.00 that comes out at closing. One of the important things to know and understand in the real estate world is, there is a difference between a buyers agent and a sellers agent. The “buyers agent” represents the buyer, and the “sellers agent” represents the seller. A real estate agent can represent both parties at the same time with approval from both parties – in this instance they simply just oversee the transaction between the buyer and seller and their fiduciary duties become limited as to how much they can disclose to each party involved.

After you find a home you like and wish to purchase, your buyer’s agent/realtor will help you in making an offer, and will then negotiate with the seller’s agent on your behalf. The purchase agreement will state the price you want to pay for the home, the type of loan and other specifics within the purchase agreement. The name you want on your deed, who pays for what, home inspections, repair cost, and when you will want to take possession of the property are also included.

A typical home purchase will vary during a “buyers market” and a “seller’s market.” We are currently in a seller’s market on the AL / MS, Gulf Coast, meaning there are more buyers looking to buy than there are homes on the market for sale. Buyers are competing against other buyers for homes and sometimes get into multiple offer situation. A seller’s market means a seller does not have to offer incentives to buyers, in order to sell, like paying the closing cost or offering home warranties. Now, when there are more homes on the market than there are buyers, it’s called a “buyers market.” Sellers are more likely to offer incentives like closing cost, home warranties, even appliances, and furniture to get buyers to buy their homes, over their competitors, this is called sellers concessions. A 1 year home warranty, is a warranties/policy that covers appliances, electrical, plumbing, HVAC, septic tank and other mechanical items for 1 year, with the buyer paying only the service call charge if something needs repair. A survey is also good to have, it may or may not be required by the lender. If it’s in a subdivision the property is already marked visibly by a fence, lines, walkways, and etc. If it’s acreage, and not visible marked, you should ask the seller to have it surveyed. Also, a termite inspection is usually required by the lender. The wood infestation report (WIR or termite letter) is usually performed just before closing. It’s always a good idea to get a termite bond on the home because Formosan termites in the South are always present. Typically the seller will pay whatever it takes to transfer ownership and title to the property, like the deed, title insurance, and prorated taxes. The buyer typically pays or finances whatever the lender requires for them to make the loan, (aka buyer closing cost.)

Once all the details of the purchase agreement are negotiated, the lender submits all the necessary paperwork to their underwriter for the loan approval. Most loans take between 45 and 60 days from start to close, but in some cases, the closing can be as soon as 30-45 days. Closing depends on buyer and lenders promptness of paperwork needed for the underwriter that will secure the loan. Earnest money also is a part of the contract. The earnest money is a deposit made by the buyer upon entering into the contract with the seller. The earnest money is held in escrow by the real estate agency or the title company. Earnest money is to show the seller the buyers are serious about purchasing their property. When the transaction is finalized and at closing, the earnest money is credited toward the buyer’s down payment or closing costs. Any time before closing the earnest money can or will be refunded to the buyer if the deal falls through because of no fault from the buyer. Although, if the buyer neglects to follow through with the purchase after all the terms within the contract are in compliance, then they must forfeit the funds to the seller. Usually $500-$1000 dollars.

Buying a home is an investment in the future. A home doesn’t lose its value as other large ticket items do. Today’s interest rates are still low, making it’s a great time to take the first step as a homeowner.

I hope this helps answer a few questions as to what the steps are for this process!

I am a Realtor and Associate Broker in and around the Alabama and Mississippi gulf coast area. I love helping my clients buy and sell homes.

To preview homes or contact me for more information about buying or selling please feel free to visit my business websites below or call me directly at 1-228-623-5495!

Azalea Real Estate in 
Grand Bay Alabama
www.azalearealestate.us 251-865-4266

Parker & Rankin Real Estate in Pascagoula Mississippi
www.parker-rankin.com 228-696-8885

Buying or selling a home in South Mobile Country Alabama or Jackson County Mississippi Gulf Coast Area.

Alice Broadway 1-228-623-5495

Alabama & Mississippi Gulf Coast REALTOR & Broker

Many thanks to Alice for sharing these tips! Want to see more posts from Kayce Stork Photography? Click here!