Congratulations on your decision to buy a house!
Homeownership is the dream of many in America. Yalina presents you with a guide that will help you understand the buying process
Point 1: How do you know where to buy?
As a Real Estate Agent I will be able to guide you in every step you have to take during the selection of the area, where you should take into account if the property you want to buy is for living or for investment
Point 2: How will I buy the property, in cash or using a mortgage loan?
Point 3: Buying a property under a registered company name or personal title?
Your future taxes and liabilities may be affected if you buy your new property with a company or buy it in personal title. An accountant or lawyer can help you make the best choice. It is common to see that the business form of an LLC (limited liability company) is the most commonly used due to
- It protects the owner from possible lawsuits related to the property.
- It allows the deduction of expenses generated by the property.
- It allows the owners to avoid double taxation.
- If the LLC was created with only one member, it could deduct the interest on the mortgage loan.
Point 4: What type of property am I looking for? New, used or pre-construction properties
Step 5: Steps in the process of buying a property
Brief and simplified explanation of the process of buying a property:
1 - The Offer
Once you have selected the property you wish to purchase, it will be necessary to make an offer. This is the legal mechanism that is used to let the seller know that you are interested in buying the property and what price you wish to buy it for. The Real Estate Agent is the person in charge of guiding you in the creation of this document. The letter of approval of the mortgage credit must be included in this offer in the case that it applies. If the purchase will be made in cash, it must include proof of bank funds.
2 - Acceptance of the Offer
If the offer is accepted by the seller, a "Title House" will be instructed to create all relevant documentation of the transfer of ownership. To the bank making the loan (if using a bank loan), an Escrow Money Deposit will be collected as a guarantee, usually between 2% and 10% of the final offer amount.
If you are buying a new construction, it can vary depending on the company
3. Inspection of the property
We will carry out the corresponding inspections of the property, to see if it meets the expectations you are looking for.
4. Appraisal
An appraisal will be performed to determine that the property costs what the seller is asking for, in case of a price adjustment.
5 The Closing
Once the law firm that has been hired thoroughly investigates the title of the property and notes that there are no additional liens, the day of the signing of the sales contract will be determined. At the time of signing, payment will be made for the remaining amount of ownership of the property and the title will be transferred to the new buyer.
6. A Real Estate Agent: its importance
The advice of a Real Estate Agent when acquiring a property is essential, because he or she knows the financial, tax and legal environment of Real Estate. An experienced Agent will answer the doubts of his clients, in addition to having the knowledge, contacts and resources necessary to make the sale transaction successful.