From Renting to Owning In 4 “Easy” Steps

STEP #1 – Meet with lender to determine financing limits

• Maximum price of home

• Maximum monthly payment

• Cash needed to purchase (down payment and closing costs)

• Lending program (fixed, ARM, etc.)

• Parents and student submit financial documentation

• Lender issues a pre-qualification letter to present with offer to seller

• Student/parent on same page

STEP #2 – Meet with realtor to determine home requirements

• Purchase price range

• # of bedrooms and bathrooms

• Location – transportation, neighborhood ambiance,

proximity to key facilities (school, shopping, Pearl Street, etc.)

• Attached vs. detached home

o Attached – condo, townhome or duplex

o Single family, detached – standalone single family home

• Amenities – yard, deck, views, style, backyard, garage, etc.

• Student/parent on same page

STEP #3 – Sign sales contract and present to seller

• Parents and student hire realtor to be their Buyer’s Agent

• Realtor searches internet and other sources for potential homes

• Realtor e-mails MLS sheets to student and parent

• Student drives by and makes short list of homes

• Realtor and student visit prospective homes

• Student reviews findings with parents

• Realtor gives parent/student sales contract documentation for review

• Student, parent and realtor visit home to finalize

• Realtor prepares contract and negotiates a signed contract

• House is now “under contract”

STEP #4 – Conduct due diligence and close on new home

• Realtor leads the parents/student through contract tasks

o Home inspection

o Title and HOA document review

o Loan commitment from lender

• Student and parents close on home

• Close immediately (sellers rent back until end of school year) – Locks in home

• Close in May when sellers vacate the property

• Students and housemates move into their new home!!!