With a little up-front planning, buying a home isn't that confusing, but the event intimidates a lot of people.
I like to give buyers an overview of the entire deal so they'll know exactly what they can expect.
Here are my nine steps to buying a home.
Step 1 – Prepare to buy a home
There are a lot of things you need to do before you start looking for a home.
You'll most likely want to put together a checklist of features you need, get an idea of what neighborhoods you'd like to live in, and start working on your budget.
Keeping your mortgage payment less than or around a third of your monthly income is a good guideline to follow.
Step 2 – Talk to a real estate agent
This is where Coldwell Banker-Hoppough & Associates /Hidden Acre Develpment Company Inc comes in.
I'd love to plan a time to get together with you and talk about your real estate needs and get an idea of your future plans.
We'll discuss neighborhoods, schools in the Lowell area, the mortgage industry, and any additional economic factors that could potentially affect your purchase today or in the future.
I'll also assist you with getting started on your loan.
I work with some of Lowell's finest mortgage professionals, so you'll be in great hands.
They'll assist you with choosing which type of loan is best for you and help you get approved.
Step 3 – Begin looking for a home
After our initial meeting, I'll start finding homes on the market that are great for you.
I'll get a sneak peek of most of the homes and ignore the bad ones, and then we'll set up appointments to tour the houses when it's convenient for you.
When we view the houses, I'll point out positive features, as well as bad ones. And I'll ask you about things you like and don't like.
Usually, buyers change their list of must-haves as we view houses and some features become more crucial than others.
If that's the situation, I'll look through all the listings once again and trim it down to the home you've been wishing for.
Step 4 – Understand the market
An agent's understanding of the Lowell home market is a crucial agent in your home search. And I can assure you I'm mindful of all the neighborhoods and schools, and I'll communicate some areas are "hot" and require prompt action and some that are "cold" and allow for cautiousness.
As we view houses, I'll make sure to communicate when the seller's list price has room for bargaining and when I think the house is "priced to sell."
When working with an agent, be careful and be sure to ask lots of questions. Every REALTOR® will convince you they truly understand the home market.
If things don't add up, contact me at 616.897.0500 or e-mail me at sdhanson99@sbcglobal.net, and I'd be more than happy to answer any questions you may have. My market knowledge will help you stay a step ahead throughout the entire deal.
Step 5 – Find your dream house
I'm sure we'll find the home of your dreams in Lowell. When that happens, I'll meticulously develop your home purchase offer. The offer will be tailored keeping your needs in mind, including some contingencies, such as acquiring financing, carrying out the inspection, and a clear title.
Upon turning in your purchase offer, most likely you'll want to submit "earnest money." This is a cash deposit made to the home seller to secure an offer to purchase the property, and it's usually applied to the cost of closing. If your offer is accepted by the seller, we should close about 30 to 60 days afterward. This allows enough time for your mortgage financing.
Step 6 – Negotiate the deal
Unfortunately most contracts don't close on the initial offer – it's pretty common to receive a counter offer. But don't let this intimidate you. We'll consider whether or not to agree to the counter offer, submit our own counter offer, or reject the seller's offer and go on.
Market conditions will play a vital role in how aggressively we negotiate the contract.
We'll also work within your financing constraints. And when it's all said and done, we'll create a contract that is best for you.
Step 7 – Obtain financing
Once the deal is finalized, you'll begin working with your lender to close the loan.
It won't take much time at all if you're pre-approved, but you'll need to stay in close contact with your lender.
And I'll take care of all the property information your mortgage lender will need to close the loan.
Step 8 – Close the deal
Your mortgage lender will send you a Good Faith Estimate (GFE) outlining your closing costs within three days of getting your application. You'll get a Good Faith Estimate (GFE) of closing costs from your lender within three days of taking your loan application.
This estimate is based on the loan amount, and RESPA requirements require that it has to contain all closing costs and fall within a tight range of accuracy. I'll study the estimate and let you know if it all looks all right.
Then it's time to close on your home. This will probably occur at a title company or escrow office and should be a smooth and stress-free event.
Step 9 – Move in
Congratulations! Now you can move into your new home. Enjoy it. And if you need anything, just contact me at 616.897.0500 or send me an e-mail.
