For most people, buying a home can be a stressful event. However, with a bit of up-front planning, it's not that complex. So you know exactly what to expect, I like to give my buyers an overview of the whole deal. These are my nine steps to purchasing a home.
Step 1 – Prepare to purchase
There are many things you need to take into account before you search for a home. When you begin your search, you'll probably want to create a check list of items you want, plan for what school districts you want to live in, and begin working on your budget. A good principle to adhere to is that your mortgage payment should be around a third of your monthly income.
Step 2 – Get with a real estate agent
That's where I can help. I'd be more than happy to plan a time to meet with you and communicate with you regarding why you want to buy a home and get an idea of your upcoming plans. We'll talk about the mortgage industry, other economic factors that may affect your purchase today or in the future, as well as neighborhoods and school districts in the area.
In addition, I'll assist you with getting started on your loan. There are some very good mortgage professionals in , and I work with a lot of them, so you're in great hands. They'll assist you with figuring out which type of loan is best for you and help you get approved.
Step 3 – Start looking
After our initial meeting, I'll start looking for available houses on the market that meet your needs. I'll get a sneak peek of many of the homes and exclude the bad ones, and then we'll set up appointments to view the homes at a time that's convenient for you.
As we view the houses, I'll identify good features and negative ones. And I'll ask you to tell us about things you like and don't like. Usually, buyers update their list of must-haves as we tour homes and some features become more necessary than others. If such is the case, I'll search all the listings another time and narrow it down to the home you've been dreaming about.
Step 4 – Understand the housing market
My understanding of the market is a necessary resource in your search. I'm informed of all the schools and neighborhoods, and I'll alert you to some areas are "hot" and require prompt action and others that are "cold" and allow for more analysis.
When we tour homes, I'll let you know when the asking price has room for bargaining and when I think the home is "priced to sell." When working with an agent, be mindful and be sure to ask a lot of questions. Every REALTOR® in will claim to comprehend the housing market. If it seems like they don't know everything, contact me at 310-836-8690 or e-mail me at firstname.lastname@example.org, and I'll be glad to answer any questions you might have. My market knowledge will keep you a step above the rest throughout the entire process.
Step 5 – Find your dream home
We'll find your dream house, and when that happens, I'll carefully create your real estate purchase offer. The offer will be written exactly to your needs. Whenever necessary, I never forget to make contracts contingent upon items like your ability to secure financing and the results of the home inspection.
Upon turning in your offer, you'll want to submit "earnest money." This is a cash deposit submitted to the seller to secure the offer to buy the property, and it's typically applied to the cost of closing. If the offer is accepted by the seller, we should close about 30 to 60 days after. This allows plenty of time for your mortgage financing.
Step 6 – Negotiate
Unfortunately most contracts aren't closed on the first offer. It's widely common to receive a counter offer. Don't let this intimidate you. We'll discuss whether or not to consent to the counter offer, present our own counter offer, or decline the seller's offer and move on.
Market circumstances determine how aggressively we negotiate the deal. In addition, we'll work within your financing constraints. And when it's all said and done, we'll assemble a deal that works well for you.
Step 7 – Secure your loan
Once we sign the final contract, you'll begin working with your lender to close the loan. It won't take much time at all if you've been pre-qualified, but you should to stay in close contact with your lender. And I'll look after all the property information your lender will need to close the loan.
Step 8 – Close the deal
Your mortgage lender will provide you with a Good Faith Estimate (GFE) outlining closing costs within three days of accepting your application. You'll get a Good Faith Estimate (GFE) of your closing costs from your lender within three days of taking your loan application. This estimate is formed from the loan amount, and RESPA requirements mandate that it has to involve all closing costs and be within a narrow range of accuracy. I'll examine the estimate and let you know if it all looks good.
Then we'll close on your house. This will most likely occur at a title company or escrow office and should be a smooth and comfortable event.
Step 9 – Move in
You made it! Now you can move into your new house. Enjoy it. And if you have any questions, make sure you call me at 310-836-8690 or send me an e-mail.