9 Steps To Buying A Home
Buying a home intimidates a lot of people, but with a bit of planning ahead of time, it isn’t too confusing. I like to supply buyers with a road map of the entire deal so they’ll understand exactly what they can expect. Here are my nine steps to purchasing a home.
Step 1 – Prepare to purchase a home.
There are plenty of things you should take into account before you look for a home. When you begin your search, you’ll want to put together a checklist of items you want to have, get a feel for what neighborhoods and school districts you’d like to live in, and begin planning around your budget. Ensuring your mortgage payment is around 30 percent of your net monthly income is a good guideline to go by.
Step 2 – Talk to a real estate agent.
That’s where I come in. I’d be happy to set up a time to get together with you and communicate with you about your real estate needs and get an idea of your plans for the future. We’ll talk about everything from neighborhoods, school districts in the Fayetteville area, the mortgage and housing industries, to any other economic factors that could affect your buying decision today or in the future. In addition, I’ll help you begin the loan process. There are some excellent mortgage professionals in Fayetteville, and I work with a lot of them, so you’ll be in great hands. They’ll assist you in deciding which kind of loan is best for you and help you get approved.
Step 3 – Start looking for a home.
After our initial meeting, I’ll begin looking for houses on the market that meet your needs. I’ll research many of the houses and exclude the duds, and then we’ll schedule appointments to tour the homes whenever it’s most convenient for you. When we view the houses, I’ll show you the good features, as well as negative ones. And I’ll ask you about things you like and dislike. Usually, buyers amend their wish list as we tour houses and some features become far more necessary than others. If such is the case, I’ll search the listings another time and narrow it down to the home of your dreams.
Step 4 – Understand the housing market.
An agent’s awareness of the Fayetteville home market is a leading component in your home search. And I can assure you I’m familiar with all the neighborhoods and school districts, and I can let you know which neighborhoods are “hot” and warrant prompt action and the ones that are “cold” and allow for careful consideration.
As we tour houses, I’ll make sure to communicate if the seller’s asking price has room for negotiation or if I believe the house is “priced to sell.” When working with an agent, be on guard and make sure you ask lots of questions. Every real estate agent in Fayetteville will tell you they understand the housing market. If things don’t add up, contact me at (910)483-5353 or e-mail me at email@example.com, and I’d be happy to answer your questions. My understanding of the market will keep you a step above the rest throughout the entire deal.
Step 5 – Find the house of your dreams.
I’m confident we’ll find the house of your dreams in Fayetteville. When we do, I’ll thoroughly create your real estate purchase offer. The offer will be tailored keeping your needs in mind, including several contingencies. A few examples are getting financing, finishing the home inspection, and a clear title. When we submit your purchase offer, you’ll probably want to present “earnest money.” This is a cash deposit made to a home seller to secure an offer to purchase the property and is usually put towards the closing costs. If the seller accepts the offer, we should close on the home within 30 to 60 days afterward. This allows plenty of time for your mortgage financing.
Step 6 – Negotiate.
A lot of deals don’t close on the beginning offer. It’s widely common to receive a counter offer. Don’t let this alarm you. We’ll discuss whether or not to take the counter offer, propose our own counter offer, or reject the seller’s offer and move on.Market conditions will play a role in how aggressively we negotiate the contract. In addition, we’ll work within your financing limits. 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 begin working with your lender to close the loan. It won’t take long at all if you’re already pre-approved, but you’ll want to stay in close contact with your lender. And I’ll look after all the property information your mortgage lender needs to close the loan.
Step 8 – Close the deal.
Your mortgage lender will supply you with a Good Faith Estimate (GFE) outlining your closing costs within three days of getting your loan application. You’ll get a Good Faith Estimate (GFE) of closing costs from your mortgage lender within three days of receiving your loan application. The estimate is based on the loan amount, and RESPA requirements order that it has to include all closing costs and be within a narrow range of accuracy. I’ll review the estimate and let you know if everything looks good. Then we’ll close on your house. This should occur at a title company or escrow office and will most often be a smooth and relaxed occasion.
Step 9 – Move in.
Congratulations! Now you can move into your new home. Enjoy it. And if you have any questions, make sure you contact me at (910) 261-3575.
Want to learn more? Read this excellent article about buying a home – Buying a Home, Guide to Getting Started.