HOME BUYING PROCESS
DO NOW: LESSON PLAN CLICK HERE
Search the Internet and locate 48 Rio Vista Drive in Alpine, NJ. This will be our DREAM home. List 2 features of this house that you like.
Ms. Todoric’s Answer: Sauna and the water fountain in the back yard. Did you see these?
Get ready to share your features to the class!
SWBAT
Students will be able to explain the home buying process in steps.
Students will be able to define Pre-Approval, Mortgage, Deed and MLS and understand how to read an MLS listing of various types of properties.
Students will be able to use their imagination and create their very own MLS listing and present it to the class.
IN ORDER TO PURCHASE ANY REAL ESTATE PROPERTY WE NEED EITHER CASH OR A PRE-APPROVAL.
What is a pre-approval?
When a borrower has completed a loan application and provided debt, income and savings documentation which an underwriter has reviewed and approved. A pre-approval is usually done at a certain loan amount and making assumptions about what the interest rate will actually be at the time the loan is made, as well as estimates for the amount that will be paid for property taxes, insurance and others.
Once we are pre-approved, let’s begin our home search!
STEPS TO THE HOME PURCHASE PROCESS
STEP One – Get a pre-approval or have cash to buy.
Step Two – Research homes/areas/realtors. Decide on a good realtor you like and who understands your needs and wants.
Step Three – View homes with Realtor or by self. FSBO ok.
Step Four – Make an offer in writing! Realtors have access to this paperwork. They are not lawyers but can prepare these documents.
Step Five – Negotiate Offer
Step Six – Accept offer and then get a Lawyer/Attorney review possible 3-7 days to review depending on state. Attorney review process. Lawyer not necessary but recommended.
Step Seven – Inspections and Appraisal. Mortgage companies will need this. They are protecting their investment with you! If you are a cash buyer, you can skip all this and close even faster if you choose to. See the REAL home Inspection Report that will be passed around class!
Step Eight – Renegotiate if problems exist with inspections
Step Nine – Close on property!
CONGRATULATIONS! YOU ARE A HOMEOWNER!
Cash buyers can close in 30 days! Most transactions take at least 60 days
when financing a property.
Mortgage (Deed or Trust)
A legal document that provides security for repayment of a promissory note.
MULTIPLE LISTING SERVICE (MLS)
The pooling in a central bureau of all properties for sale.
The listings are held individually by members of a group of real estate
brokers, with the agreement that any member of the group may sell the
properties and the commission will be divided between the
broker that sold the property
and the
broker who filed the listing.
TIME TO READ AN MLS LISTING! (This is a REAL listing from the NJ MLS!)
CLASS ASSIGNMENT OR HOMEWORK
Create and design your very own MLS listing on the home you currently
live in or a pretend home but it has to be reasonable and fit that location.
Example: Are there any mansions with acres of parklike property like
Alpine in Manhattan?
You can do this on a computer program with pictures
and edit your
pictures to enhance those features you like!
Be creative and have fun!
Use the Internet to find the missing info you do not know like
square footage and tax amount of your home.
Be prepared to share
with the class your creative design!!
Use the Alpine MLS listing as a sample! Pretend you are the
listing agent trying to sell your property.
How would you describe your property?
We will discuss this in our next class as far as what you can and can’t say!
RUBRIC
REFERENCES
Reference: https://dos.ny.gov/real-estate-salesperson
https://www.newjerseymls.com/services/xl-paragon/
Coldwell Banker - Essential Guide for Homebuyers and Sellers
Wendy Todoric, Real Estate Agent -Hillsdale, NJ - Coldwell Banker Realty (coldwellbankerhomes.com)
REMAX / Coldwell Banker/Weichert / Christies /