It seems obvious, but it's good to note that the first step to buying a home is making the decision to buy. Consider the reasons you want a new home and write them down. Determine how long you want to live in the new home. Does buying still make good financial sense? Can you afford a home that will meet your list of requirements?
Step 2 - Seek Professional Guidance
Buying a home is a very complicated process.But with our help, you can minimize the stress and potential pitfalls.We'd like to schedule a time to meet with you to hear the reasons you want to buy, what you’re looking for in a new home, and your plans for the future. We'll talk about neighborhoods, schools, and economic factors liable to affect the market today and tomorrow, as well as how you would like your home and neighborhood to grow with you.
At this time, we’ll also help you get pre-approved for a mortgage loan. Pre-approval 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-approved will help us when we are negotiating the deal.
Step 3 - Begin the Hunt
After our initial meeting, we'll search all of our resources for homes on the market that fit your criteria. We'll preview these homes when possible to eliminate the duds. Then, we'll schedule appointments to tour the homes at times convenient to you.
As we tour homes, we'll point out positive features and negative features. We'll ask you to tell us what you like and what you don't like. You'll probably amend your "wish list" as we tour homes, 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
Our knowledge of the local market is an essential factor in the home search. We'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 homes, we'll let you know when the asking price has negotiating room and when the home is "priced to sell". Our unique market knowledge will keep you a step ahead of the "home 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 homes for sale than buyers. This gives us more negotiating room as homes are taking longer to sell.
Step 5 - Find Your Dream Home
We're confident we'll find your dream home. When we do, we'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 secure an offer to buy the property. The amount is applied to closing costs. If the seller accepts the offer, generally closing is held 30-60 days from the contract acceptance date.
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 – Inspections & Appraisals
Once the contract is ratified, we’ll order the inspections provided for in the contract.This can include home, termite, lead, well, septic, radon, mold, and more.If items need to be addressed, you may decide to ask the seller to complete further testing and/or repairs.While the seller is obligated to make some repairs per the contract, most are negotiable.You’ll have an opportunity right before settlement to re-inspect repairs and/or obtain written proof from contractors hired by the seller.
Your lender will also order the property appraisal.In order to obtain financing, the property must appraise for at least the contract sales price.If it doesn’t, the seller may agree to lower the sales price, you and the seller may agree to make up the difference, you may decide to make up the difference on your own, or you have the right to void the contract if all parties can’t agree.
Step 8 - Close the Deal
During the closing period, you will be working with your mortgage lender to close the loan. Since you were pre-approved for the loan before starting your home search, you will be that much closer to the end. We'll gather the necessary property and contract information your lender will need to close the loan.
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. We will be glad to review the "Good Faith Estimate," answering questions and highlighting missing costs and estimates we believe to be low.At settlement, we’ll make sure all discrepancies have been resolved and the loan & title paperwork is completed properly.
Step 9 - Move In
Congratulations! It's time to move into your new home. Enjoy this exciting time. We'll give you a checklist to help you remember the numerous details that will make your moving day a pleasure.
