For a lot of people, buying a home can be a stressful event. But with some up-front planning, it's not all that complicated. I like to supply buyers with an outline of the whole deal so they know exactly what to expect. These are my nine steps to purchasing a home.
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When you're ready to get started, simply contact me here or send e-mail to mwhite@royalrealestate.net. I'm happy to address any questions you have regarding this information. |
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Step 1 – Prepare to buy a home
Before you begin looking for a home, there are several things you should do. When you begin your search, you'll want to form a check list of must-haves, plan for what school districts and neighborhoods you'd like to live in, and begin planning around your budget. Ensuring your mortgage payment is around 1/3 of your monthly income is a good rule of thumb to follow.
Step 2 – Speak with a real estate agent
This is where I come in. I'd love to arrange a time to get together with you and communicate with you regarding your real estate needs and get an idea of your plans for the future. We'll talk about the mortgage and housing industries, other economic factors that may potentially affect your purchase today or in the future, as well as neighborhoods and schools in the Fox Valley area.
I can also assist you in getting started on your loan. There are some great mortgage professionals in the area and I partner with a lot of them, so you'll be in great hands. They'll help you choose which type of loan is best for you, as well as help you get approved.
Step 3 – Start house hunting
After we meet for the first time, I'll begin finding houses on the market that are great for you. I'll get a sneak peek of many of the homes and throw out the duds, and then we'll book appointments to tour the houses whenever it's convenient for you.
When we tour houses, I'll point out positive features, as well as negative ones. And I'll ask you to point out what things you like and don't like. Most often, buyers change their must-have list as we tour houses and some things become more essential than others. If that's the case, I'll go back through the listings one more time and narrow it down to the house you've been wishing for.
Step 4 – Get a grasp of the market
Your agent's knowledge of the market is a leading aspect in your home search. And I assure you I'm acquainted with all the neighborhoods and school districts, and I will communicate some neighborhoods are "hot" and warrant immediate action and some that are "cool" and allow for careful examination.
When we view homes, I'll be sure to tell you if the list price has room for bargaining or if I believe the home is "priced to sell." Any real estate agent will convince you they know the housing market, but take notice, and make sure you ask your agent lots of questions. I will be more than happy to answer any questions you might have at any time during the process. My market expertise will help you stay a step above the rest throughout the entire process.
Step 5 – Find the home you've been looking for
I'm certain we'll find the home of your dreams. When that happens, I'll meticulously develop your real estate purchase offer. The offer will be tailored with your needs in mind, including several contingencies, such as obtaining financing, carrying out the home inspection, and a clear title.
When turning in your purchase offer, you'll want to submit "earnest money." This is a cash deposit made to the seller to secure the offer to purchase the property. The amount is most often put towards the cost of closing. If your offer is accepted by the seller, we should close about 30 to 60 days afterward. This allows sufficient time for your mortgage financing.
Step 6 – Negotiate
A lot of contracts don't close on the first offer. It's pretty common to receive a counter offer. But don't let this alarm you. We'll figure out whether or not to take the counter offer, present our own counter offer, or refuse the seller's offer and go on.
Market circumstances will play a big part in how aggressively we negotiate the contract. We'll also work within your financing budget. And when it's all said and done, we'll create a contract that is best for you.
Step 7 – Obtain financing
Upon signing the contract, you'll begin working with your mortgage lender to close the loan. If you've been pre-qualified, this shouldn't take very long at all. However, you'll want to stay in close contact with your mortgage lender. And I'll take care of all the property information your lender will need to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) of your closing costs from your mortgage lender within three days of receiving your application. This estimate is based on the loan amount. RESPA requirements require that it has to include all closing costs and be within a close range of accuracy, and I'll review the estimate and let you know if everything looks good.
Then it's time to close on your home. This will probably occur at a title company or escrow office and is often a smooth and relaxed affair.
Step 9 – Move in
Congratulations! Now you can move into your new house. Enjoy it. And if you need anything or have any questions, be sure to call or email me.
