Buying Tips

Here are a few tips for those buying their first home or buying their last home.

1. You should determine how much you can/want to spend.

• Know what is in your credit report and what is your credit score.
• Talk to a local Bank.
• Call a Mortgage Broker- they may have some more options available to you.
• Get a pre- approval letter.
• Don't make any major purchases and keep your spending down. 
• Collect necessary paperwork: Pay stubs, Tax returns, Investment and Banking Statements, Current Mortgage information etc. You may get a comprehensive list from your mortgage broker or lender.

2. Figure out what you WANT and NEED in a home.

• Location: Schools, Commuting distance, Shopping, Hospitals, near water, parks etc.
• Size: Number of bedrooms/bathrooms, total living space square footage,  lot size.
• Determine "Must have" and  "nice to have":  garage, kitchen, living room, dining room, fireplace, deck, yard, large closets.  You may need to compromise, so it is good to have an idea of what you REALLY want.

3. Start looking.

• Go online and search the most up to date sites, including: http://www.century21.com, http://www.riliving.com, andhttp://www.realtor.com.
• Enlist the help of your real estate agent in the search.  They can send you the newest listings and price reductions to hit the market.
• Go see the houses that you like. Your agent can arrange showings and notify you of upcoming open houses on those listings in which you are interested.  Remember, often 24 hourse is needed to arrange a showing.
• Make sure you give your agent FEEDBACK after seeing each home.  This will help narrow the search.

4. Once you find a house you like and want to make an offer:

• Make sure to review the Seller's Lead Disclosure and RI Real Estate Disclosure Form on condition of the property and any additions/repairs.
• Have your agent perform a comparison on similar properties that have sold recently in the area.  This way you can make a reasonable offer that may produce a counter offer or be accepted.
• Your agent should prepare a purchase and sale agreement that will include any details in regards to Mortgage Contingency, Fixtures to be included, Inspection Contingency and inspections to be completed, Down payment,  Closing Date, and any closing costs paid for by the Seller.

5.  Once your  Purchase and Sale Agreement has been signed by both parties:

• Provide your agent with the Initial Deposit Check.
• Inspections will need to be scheduled and performed withing 10 days. If any items come to light, you will need to determine if you want repairs, compensation at closing, or accept the home "as is".
• Paperwork will need to be provided to your bank or mortgage broker in order to obtain the mortgage and appraisal.
• Hire a closing attorney who deals in Real Estate. They will schedule a title search.
• Obtain Homeowners Insurance on the property (to take effect at closing).  Verify you don't need flood insurance.
• Closing Costs: You will receive an estimation of these costs from the Closing Attorney or your agent a day before closing.  Be prepared with a Bank Check at closing to cover these costs. (No personal checks)
• Walk Through the property the day of closing with your agent. Ensure that there are no damages and that all items to be included have been left with the property.  It only has to be "Broom Clean".

6. The Closing

• All Documents, including title to the property, loan paperwork,  will be prepared by the attorney, lenders and title companies.  You will need to sign and initial them and be given a copy for your records.
• Make sure to have the Bank Check covering any closing costs with you.

7.  Congratulations on your new home!  Now it is time to move in.  One suggestion:  you may want to change the locks on  your new home as recommended by security experts. 

As always, if you are uncertain about any of the details while you are purchasing your home, just ask your Real Estate Agent.  They are there to help you and protect your interests.