Purchasing a home can be stressful for a lot of people, but it isn't very confusing with a little up-front planning. I like to furnish buyers with an outline of the entire deal so they understand exactly what to expect. Here are my nine steps to purchasing a home.
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When you're ready to get started, you can contact me here or send e-mail to ISell4U@att.net. I'm happy to answer any questions you have about this information. |
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Step 1 – Prepare to purchase a home
Before you start searching for a home, there are a lot of things you should contemplate. You'll want to assemble an outline of items you want, get a plan of what neighborhoods and school districts you'd like to live in, and begin planning your budget. A good rule of thumb to go by is that your mortgage payment should be less than or close to a third of your monthly income.
Step 2 – Get in touch with a real estate agent
This is where I come in. We can arrange a time to get together so we can talk about your real estate needs and get an idea of your upcoming plans. We'll talk about the mortgage and housing industries, other economic factors that may affect your buying decision today or in the future, as well as neighborhoods and schools in the area.
I'll also help you facilitate the loan process. There are some good mortgage professionals, and I partner with a few of the great ones, so you're in very good hands. They will help you figure out which type of loan is best for you, as well as help you get approved.
Step 3 – Start looking for a home
After our first meeting, I'll start looking for homes on the market that are a great fit for you. I'll research many of the homes and remove the bad ones, and then we'll set up appointments to view the homes at a time that's convenient for you.
When we tour houses, I'll show you the good features, as well as bad ones. And I'll ask you what things you like and dislike. Usually, buyers amend their must-have list as we tour houses and some things become more necessary than others. If that's the situation, I'll search the listings one more time and narrow it down to the house you've been waiting for.
Step 4 – Know the housing market
An agent's knowledge of the housing market is a crucial element in your home search. And I assure you I'm acquainted with all the neighborhoods and schools, and I'll alert you to which districts are "hot" and require prompt action and others that are "cold" and allow for careful consideration.
As we view houses, I'll be sure to tell you if the seller's asking price has room for bargaining or if I believe the house is "priced to sell." Any REALTOR® in Oldwick will claim to know the market, but be on guard, and be sure to ask plenty of questions. If things don't add up, contact me at 908-285-0263 or e-mail me at ISell4U@att.net, and I'd be happy to answer your questions. My understanding of the market will keep you a step ahead throughout the entire deal.
Step 5 – Find the home you've been waiting for
I'm confident we'll find the home of your dreams. When that happens, I'll precisely create your purchase offer. The offer will be tailored keeping your needs in mind, including many contingencies, such as getting financing, finishing the inspection, and a clear title.
When we send in your purchase offer, you'll want to submit "earnest money." This is a cash deposit submitted to a seller to secure the offer to buy the property. The amount is typically applied to the closing costs. If the offer is accepted, we should close on the home about 30 to 60 days after. This allows enough time for your mortgage financing.
Step 6 – Negotiate
Unfortunately most contracts don't close on the initial offer, and it's extremely common to receive a counter offer. But don't let this alarm you. We'll figure out whether or not to agree to the counter offer, propose our own counter offer, or refuse the seller's offer and move on.
Market conditions will play a large role in how aggressively we negotiate the contract. In addition, we'll work within your financing budget. And when it's all said and done, we'll put together a contract that works well for you.
Step 7 – Obtain financing
Once we sign the final sales contract, you'll start working with your mortgage lender to close the loan. If you've been pre-approved, this shouldn't take much time at all, but you'll need to stay in close contact with your mortgage lender. And I'll care for all the property information your mortgage lender will need to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) of closing costs from your mortgage lender within three days of getting your loan application. The estimate depends on the loan amount. RESPA requirements dictate that it has to involve all closing costs and fall within a strict range of accuracy, and I'll examine the estimate and let you know if it all looks all right.
Then we'll close on your home. This will likely happen at a title company or escrow office and will most often be a smooth and relaxing occasion.
Step 9 – Move in
Congratulations! Now you can move into your new home. Enjoy it. And if you need anything or have any questions, simply contact me at 908-285-0263 or send me an e-mail.
