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

We would 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 locations, 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-approved for a mortgage loan. Pre-approval is what you need to obtain from a mortgage lender and then you can go shopping for real estate with no worries about your financing and you will look favorable to a seller that shows them you are ready to buy their home of course we will have contingencies in the offer but this is a vital first step to purchasing real estate. Pre-Approvals help to negotiate you a better deal.

Step 3 - Begin the Hunt

After our initial meeting, we will search all our resources for houses on the market that fit your criteria. We will preview the homes where necessary to eliminate the duds. Then, we will schedule appointments to tour the houses at times convenient to you.

As we tour houses, we will point out positive features and negative features. We want to hear your feedback too. Tell us 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, we will refine our search criteria to narrow in on the house of your dreams.

Step 4 - Know the Market

Our knowledge of the local market is an essential factor in the house search. We will 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, we will let you know when the asking price has negotiating room and when the house is "priced to sell". Our 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

We are confident that we'll find your dream house. When we do, we put together the purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable home inspection, radon, clear title, etc.).

The offer is normally presented with "earnest money". This is a cash deposit that goes into an escrow account for consideration with your contract to purchase the seller's home. The amount is applied to closing costs or your down payment at settlement. 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) or the time you are looking to settle. You may be relocating and have a specific time frame in mind that needs to be met.

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 were pre-approved 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 and also provide this information to the settlement agent.

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. We will be glad to review the "Good Faith Estimate," and answer any questions we can.

Step 9 - Move In

Congratulations! It's time to move into your new house and make it your home. Enjoy this exciting time. We will give you a checklist to help you remember the numerous details that will make your moving day a pleasure.