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Step - 1
Make the Decision to Buy |
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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 |
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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.
It is even better to
be pre-approved instead of simply
pre-qualified, as explained above.
“Shop the money first, then shop the house” |
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Step 3 -
Begin the Hunt |
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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 |
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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.
Typically, as interest rates fall, during a
time of economic recession, house prices
rise and it’s a “seller’s market”.
During an inflationary time period, interest
rates rise, and house price somewhat fall,
and it’s a “buyer’s market”. |
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Step 5 -
Find Your Dream House |
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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). |
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Step 6 -
Negotiate the Deal |
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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. |
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Step 7 -
Get a Loan |
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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.
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Step 8 -
Close the Deal |
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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. |
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Step 9 -
Move In |
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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 |
