|
Ten Steps to Home Ownership |
|
|
Step 1 - Make the Decision to Buy |
|
It seems obvious, but it is 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? |
|
Step 2 - Seek Professional Guidance |
|
I would like to schedule a time to meet with you to hear the reasons you want to buy a house and your plans for the future. We will 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 this time, I will also help you get pre-approved for a mortgage loan. Pre-approval is a written statement from a loan officer indicating his or her opinion that you will be approved for a mortgage loan up to a certain amount. Submitting a pre-approval letter with your offer to purchase a home will help us when we are negotiating the deal. |
|
Step 3 - Begin the Hunt |
|
After our initial meeting, I will search all my resources for houses on the market that fit your criteria. I may preview these houses to eliminate those you would not desire. Then, I will schedule appointments to tour the houses at times convenient to you. As we tour houses, I will point out positive features and negative features. I will ask you to tell me what you like and what you do not like. You will probably amend your "wish list" as we tour houses, some things will become more important and others less important. With this new information, I will refine our search criteria to narrow in on the house 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" and requires immediate action or when the market is "cool" and allows for thoughtful consideration. As we tour houses, I will let you know when the asking price has negotiating room and when the house is "priced to sell". My unique market knowledge will keep you 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 other side, during a "buyer's market" there are more houses for sale than buyers. This gives us more negotiating room as houses are taking longer to sell. |
|
Step 5 - Find Your Dream House |
|
I am confident we will find your dream house. When we do, I will write an “Offer to Purchase” tailored for your needs, including appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.). The offer is normally presented with "earnest money". This is a cash deposit made to a home seller to secure an offer to buy the property. Generally it is for $1,000. The amount is applied to closing costs. If the seller accepts the offer, generally closing is held 30 to 60 days from the offer date (generally dependent on the turn around time of your mortgage financing). |
|
Step 6 - Negotiate the Deal |
|
It is not uncommon to receive a counter offer when the initial purchase offer is submitted. Do not let this discourage you. We will discuss the counter offer and decide whether to accept the counter offer, submit our own counter offer, or reject the counter offer 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 - Purchase and Sale Agreement |
|
Within two or three weeks from the time of accepted offer, and after the price and contingencies are negotiated, I will help you write a “Purchase and Sale Agreement”. This solidifies your desire to purchase and the sellers desire to buy to you. Typically, you will write a check for a percentage of the sale price with this signed agreement. |
|
Step 8 - Get a Loan |
|
During the closing period, you will be working with your mortgage lender to close the loan. Since you pre-approved for the loan before starting your home search, you will be that much closer to the end. I will gather the necessary property information your lender will need to close the loan. |
|
Step 9 - Close the Deal |
|
You will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer's experience and may not include all the closing costs. I will be glad to review the "Good Faith Estimate," answering questions and highlighting missing costs and estimates I believe to be low. |
|
Step 10 - Move In |
|
Congratulations! It is time to move into your new house and make it your home. Enjoy this exciting time. I will give you a checklist to help you remember the numerous details that will make your moving day a pleasure. |
