For most people, purchasing a home can be an intimidating event. But with some up-front planning, it's not all that hard. I like to supply buyers with an outline of the whole deal so they understand exactly what they can expect. These are my nine steps to purchasing a home.
Step 1 – Prepare to buy a home
Before you start searching for a home, there are many things you need to consider. When you start your search, you'll want to make an outline of features you want to have, get a plan of what neighborhoods and school districts you want to live in, and start working on your budget. A good principle to go by is that your mortgage payment should be less than 1/3 of your net monthly income.
Step 2 – Get with a real estate agent in Baldwin
This is where Sailing Home Realty, Corp. comes in. We'll book a time to meet so we can talk about why you want to buy a home and get an idea of your plans for the future. We'll talk about everything from neighborhoods, school districts in the Baldwin area, the mortgage industry, to any other economic factors that could potentially affect your buying decision today or in the future.
I can also assist you with getting started on your loan. There are some great mortgage professionals in Baldwin, and I partner with a lot of them, so you're in great hands. They can assist you in figuring out which kind of loan is best for you and help you get approved.
Step 3 – Begin looking for a house
After our first meeting, I'll begin searching for available homes on the market that suit your needs. I'll get a sneak peek of many of the homes and ignore the duds, and then we'll set up appointments to tour the houses whenever it's convenient for you.
When we tour the homes, I'll point out positive features and bad ones. And I'll ask you about things you like and don't like. Frequently, buyers amend their must-have list as we tour homes and some items become more crucial than others. If that's the case, I'll look through the listings one more time and narrow it down to the home you've been dreaming about.
Step 4 – Know the market
Your agent's understanding of the Baldwin home market is a fundamental element in your house search. And I assure you I'm mindful of all the schools and neighborhoods, and I'll communicate certain districts are "hot" and call for immediate action and others that are "cold" and allow for cautiousness.
As we tour houses, I'll let you know if the seller's asking price has room for negotiation or if I believe the house is "priced to sell." Any REALTOR® in Baldwin will tell you they comprehend the home market, but be on guard, and be sure to ask plenty of questions. If things don't add up, call me at 5163774760 or e-mail me at homes@sailinghomerealty.com, and I'll be more than happy to answer any questions you might have. My understanding of the market will keep you a step ahead through the entire process.
Step 5 – Find your dream home
I know we'll find your dream home in the Baldwin area. When that happens, I'll meticulously develop your home purchase offer. The offer will be tailored with your needs in mind, including some contingencies. A few examples are acquiring financing, finishing the inspection, and a clean title.
Upon sending in your purchase offer, you'll want to submit "earnest money." This is a cash deposit submitted to the seller to secure the offer to purchase the property, and it's most often put towards the closing costs. If the offer is accepted, we should close about 30 to 60 days afterward. This allows plenty of time for your mortgage financing.
Step 6 – Negotiate the deal
Unfortunately most deals don't close on the beginning offer, and it's very common to receive a counter offer. Don't let it alarm you. We'll talk about whether or not to accept the counter offer, propose our own counter offer, or decline the seller's offer and move on.
How aggressively we negotiate the contract depends on the state of the market. In addition, we'll work within your financing constraints. And at the end of the day, we'll assemble a deal that's best for you.
Step 7 – Obtain your loan
Once we sign the final contract, you'll begin working with your mortgage lender to close the loan. If you're already pre-approved, this shouldn't take long at all. But you need to stay in close contact with your lender. And I'll look after all the property information your lender will need to close the loan.
Step 8 – Close the deal
Your lender will furnish you with a Good Faith Estimate (GFE) detailing your closing costs within three days of accepting your application. You'll get a Good Faith Estimate (GFE) outlining your closing costs from your mortgage lender within three days of taking your application. This estimate rests on the loan amount. RESPA requirements order that it has to contain all closing costs and be within a narrow range of accuracy, and I'll examine the estimate and let you know if everything looks adequate.
Then it's time to close on your house. This should happen at a title company or escrow office and will likely be a smooth and hassle-free affair.
Step 9 – Move in
You made it! It's time to move into your new house. Enjoy it. And if you need anything or have any questions, simply contact me at 5163774760 or send me an e-mail.
