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 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 and it will also prevent us from looking at homes out of your price range.
Step 3 - Begin the Hunt
After our initial meeting, we will utilize all my resources to search for houses on the market that fit your criteria. Then, we 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 us what you like and what you don't like. You'll probably modify your "wish list" as we tour houses -- some things will become more important and others less important. With this new information, we'll refine our search criteria to narrow in on the home of your dreams.
Step 4 - Know the Market
My knowledge of the local market is an essential factor in the house search. I will 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.
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 am confident we'll find your dream house. When we do, I will put together the purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, home warranties, 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 and is a display of your sincerity in your offer. The amount is applied to closing costs. If the seller accepts the offer, generally closing is held 30 to 40 days from the offer date (generally dependent on the turn around time of your mortgage financing and bringing the abstract to date on the purchased property). Note that although your earnest money is applied at closing, it is cashed when your offer is accepted by the Seller.
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 Loan
During the closing period, I will be working with your mortgage lender to obtain the loan. Since you pre-qualified for the loan before starting your home search, you will be that much closer to a successful conclusion. I will refer you to a closing manager who will 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.
Step 9 - Move In
Congratulations! It's 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 move a pleasure.
Use the form below to send Lori your MLS listing number or ask any questions. She will reply as soon as possible, please double check your email before submitting. An email will be sent to you confirming you submitted the form correctly.
