The 9 Steps to Home Ownership
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 your mortgage payment should not exceed 1/3 of your
net monthly income.
Step 2 - Seek Professional Guidance
I'd 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'll 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-qualified for a mortgage loan. Pre-qualification 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. The fact that you
are pre-qualified will help us when we are negotiating the deal.
Step 3 - Begin the Hunt
|After our initial meeting, I'll search all my
resources for houses on the market that fit your criteria. I'll preview
these houses to eliminate the duds. Then, I'll schedule appointments to
tour the houses at times convenient to 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 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'll 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 flip 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'm confident we'll find your dream house. When
we do, I'll put together the purchase offer 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. 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. Don't let this discourage you. We
will discuss the counter offer and decide whether or not 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
Step 7 - Get a Loan
During the closing period, you will be working
with your mortgage lender to close the loan. Since you pre-qualified for
the loan before starting your home search, you will be that much closer to
the end. I'll gather the necessary property information your lender will
need to close the loan. |
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.
The estimate is based on the loan officer's past 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 9 - Move In
|Congratulations! It's time to move into your new house and make it your home. Enjoy this exciting time. I'll give you a checklist to help you remember the numerous details that will make your moving day a pleasure.|