|
|
|
|
|
|
|
|
|
Step 1 - Make the Decision to Buy |
It seems obvious, but it's good to note that the first step to buying a house is making the decision to buy. Consider the reasons you want a new house and write them down. Determine how long you want to live in the new house -- does buying still make good financial sense? Can you afford a house that will meet your list of requirements?
A good rule of thumb is that your total monthly mortgage payment including Principal payments of the loan, Interest payments of the loan, real estate Taxes on the property, and homeowners' Insurance on the property (together referred to as P.I.T.I.) should be in the range of 25%-35% of your gross monthly income. Of course, everyone's situation may be different with respect to other debt and regular monthly expenses, so this range is just a guideline to get your started to think about what you can afford and will feel comfortable paying each month.
Lenders will have more specific requirements with respect to debt-to-income ratios depending on what type of loan program you are interested in and the current status of your credit rating.
|
|
Step 2 - Seek Professional Guidance |
I'd be happy to meet with you, of course with no cost or obligation to you, to talk about your plans for the future and why you want to buy a home. We can talk about neighborhoods, schools, economic factors liable to affect the market today and tomorrow, as well as how you would like your house and neighborhood to grow with you.
At the same meeting, I can start the process to get you pre-qualified for a mortgage loan to help buy your new home. Pre-qualification is a good first step to learning about what type of financing is available to you and how much home you will be able to afford. Once you've gone through the pre-qualification process, we can begin to look for homes that meet your criteria and continue to submit any additional information needed to obtain a mortgage loan pre-approval. The fact that you are pre-approved will help us when we are negotiating the offer to purchase the home you want.
|
|
Step 3 - Begin the Hunt |
Once we begin the hunt for your home, I will first provide you with information about all of the homes currently listed in the Regional Multiple Listing Service (MLS) that meet the criteria for that home you are looking for. Then I will update you regularly as new homes that may fit your criteria come on the market so you will get one of the first looks at any new listings that might interest you. We will schedule private appointments to tour the houses at times that are convenient for you.
As we tour houses, I'll point out positive features and negative features. I'll ask you to tell me what you like and what you don't like. You'll probably amend your "wish list" as we tour houses. Some things will become more important and others less important. With this new information, I'll be able to refine our search criteria to narrow in on that home of your dreams.
|
|
Step 4 - Know the Market |
My knowledge of the local market is an essential factor in the house search. I'll let you know when the market in a particular neighborhood is "hot" (or in high demand) and requires immediate action or when the market is "cool" and allows time for thoughtful consideration. As we look at available homes, you will also become more knowledgeable about the value of homes on the market by comparing the features and prices.
As we tour houses, I'll let you know when I think the asking price has negotiating room and when the house is "priced to sell". My goal will be to inform you of new listings in a timely manner so we will always stay a step ahead of the "house hunting competition".
In a "seller's market". It is not unusual to see multiple offers on a property, full-price offers and even above-price offers. On the flip side, during a "buyer's market" there are more houses for sale than buyers. That gives us more time and room to negotiate a purchase price if houses are taking longer to sell.
|
|
Step 5 - Find Your Dream House |
I'm confident that we will find your dream home, and when we do, you'll know it! Then, I'll put together the purchase offer tailored for your needs including the appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.).
The offer is normally presented with "earnest money". This is a deposit made to a home seller to secure an offer to buy the property. The amount is later applied toward the closing costs. If the seller accepts the offer, generally closing is held between three and six weeks later, which is the normal time frame to complete mortgage financing arrangements, property appraisal and title work.
|
|
Step 6 - Negotiate the Deal |
It is not uncommon to receive a counteroffer when the initial purchase offer is submitted. Don't let this discourage you. We will discuss the counteroffer and decide whether or not to accept the counteroffer, submit our own counteroffer, or reject the counteroffer and move on.
Market conditions will play a role in how aggressively we negotiate the deal. We will also work within your limits. Emotions can lead to buyer's remorse. It is better to set limits prior to negotiating an offer and stick to these limits.
|
|
Step 7 - Get a Loan |
During the closing period, we will be working to finalize your mortgage loan so it will be ready to fund your purchase at the closing date. Since we expect that you will be pre-approved for the loan before we make an offer to purchase a home, I'll only have to gather the necessary property information and tie up any loose ends on the loan documentation to have the loan ready to close.
Click here if you would like to start a loan application
|
|
Step 8 - Close the Deal |
You will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. This is just an estimate based on past experience and may not include all of the closing costs specific to your loan, but should be a fairly accurate indication of what you can expect. I will be glad to review the "Good Faith Estimate," answering your questions and highlighting any estimates that I believe might be high or low.
|
|
Step 9 - Move In |
Congratulations! After you find that home you are looking for, reach an agreement on price and terms, secure the financing, and close the transaction, it will be time to move into your new house and make it Your home.
Enjoy this exciting time. There is a lot to think about and do, but my job will be to help make it as easy as possible for you. People do it everyday ... you can too! |
|
|
|
|
|
 |