Purchasing a home can be stressful for a lot of people. However, with a bit of up-front planning, it isn't too confusing. I like to provide buyers with a road map of the whole deal so they'll know exactly what to expect. These are my nine steps to buying a home.
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If you have any questions about any of this information or if you're ready to get started, you can contact me at 619-566-ADAM or AJMallory@aol.com. |
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Step 1 – Prepare to buy a home
There are many things you need to do prior to commencing your home search. When you begin your search, you'll probably want to form an outline of features you want, get a plan of what neighborhoods you'd like to live in, and begin working on your budget. Ensuring your mortgage payment is no more than 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. As an Accredited Buyer's Representative, I'd love to plan a time to get together with you and talk about your real estate needs and get an idea of your future plans. We'll discuss everything from neighborhoods, schools in the area, the mortgage industry, to any other economic factors that may potentially affect your purchase today or in the future.
In addition, I'll help you get started on your loan. I work with some of the finest mortgage professionals in the business, so you'll be in great hands. They will assist you with deciding which kind of loan is best for you and help you get qualified.
Step 3 – Start looking
After our first meeting, I'll begin finding houses on the market that are great for you. I'll get a sneak peek of most of the houses and throw out the duds, and then we'll set up appointments to tour the houses when it's most convenient for you.
When we view the homes, I'll show you the positive features and negative ones. I'll also ask you to talk about things you like and dislike. It's pretty common for buyers to revise their wish list as we tour homes and some things become far more substantial than others. If that's the case, I'll go back through all the listings one more time and narrow it down to the home of your dreams.
Step 4 – Get a grasp of the housing market
My awareness of the local home market is a fundamental resource in your house search. I'm mindful of all the schools and neighborhoods, and I can communicate which areas are "hot" and warrant prompt action and the ones that are "cold" and allow for more analysis.
As we view houses, I'll let you know when the seller's asking price has room for bargaining and also when I think the home is "priced to sell." When working with an agent, be careful and be sure to ask plenty of questions. Any REALTOR® will tell you they comprehend the market. If it doesn't seem like they know everything, contact me at 619-566-ADAM or e-mail me at ajmallory@aol.com, and I'll be more than happy to answer any questions you might have. My knowledge of the market will keep you a step ahead throughout the entire process.
Step 5 – Find your dream home
I know we'll find the home of your dreams. When that happens, I'll meticulously develop your purchase offer. The offer will be tailored exactly to your needs, including some contingencies, such as acquiring financing, carrying out the home inspection, and a clean title.
When turning in your offer, most likely you'll need to present "earnest money." This is a cash deposit submitted to the home seller to secure an offer to buy the property, and it's most often applied to the cost of closing. If your offer is accepted by the seller, we should close about 30 to 60 days afterward. This allows necessary time for your mortgage financing.
Step 6 – Negotiate the deal
Unfortunately most contracts don't close on the first offer, and it's pretty common to receive a counter offer. Don't let it intimidate you. We'll figure out whether or not to accept the counter offer, propose our own counter offer, or decline the seller's offer and move on.
Market conditions will play a big part in how aggressively we negotiate the contract. In addition, we'll work within your financing constraints. And when it's all said and done, we'll compose a contract that is best for you.
Step 7 – Obtain financing
After we sign the final deal, you'll start working with your lender to close the loan. If you're already pre-qualified, this shouldn't be a long process at all. But you'll need to stay in close contact with your mortgage lender. And I'll manage all the property information your lender will need to close the loan.
Step 8 – Close the deal
Your lender will furnish you with a Good Faith Estimate (GFE) of closing costs within three days of taking your application. You'll get a Good Faith Estimate (GFE) outlining your closing costs from your lender within three days of getting your loan application. The estimate is formed from the loan amount. RESPA requirements dictate that it has to contain all closing costs and be within a strict range of accuracy, and I'll go over the estimate and let you know if everything looks permissible.
Then it's time to close on your house. This will most likely take place at a title company or escrow office and will probably be a smooth and pleasant affair.
Step 9 – Move in
Congratulations! Now you can move into your new home. Enjoy it. And if you have any questions, be sure to contact me at 619-566-ADAM or send me an e-mail.
