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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.
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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.
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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.
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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 limits. |
Step 7 - Get a Mortgage |
| 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. |
