Steps to Home Ownership
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 limits. |
|
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. |