For most people, purchasing a home is a stressful event. But with a bit of planning ahead of time, it's not very confusing. We like to furnish buyers with a road map of the entire deal so they understand exactly what to expect. These are our nine steps to purchasing a home.
Step 1 – Prepare to purchase
There are many things you should take into account prior to beginning your home search. When you start your search, you'll probably want to form a check list of features you need, get an idea of what school districts you want to live in, and start planning your budget. A good rule to go by is that your mortgage payment should be less than or around 1/3 of your monthly income.
Step 2 – Contact a real estate team
That's where we can help. We'll book a time to get together so we can talk about why you want to buy a home and get an idea of your upcoming plans. We'll discuss the mortgage and housing industries, other economic factors that could affect your purchase today or in the future, as well as neighborhoods and school districts.
In addition, we'll help you facilitate the loan process. There are some very good mortgage professionals, and we work with a lot of them, so you can rest assured that you're in great hands. They'll help you choose which type of loan is best for you, as well as help you get approved.
Step 3 – Start your search
After our initial meeting, we'll begin finding houses on the market that are a great fit for you. We'll get a sneak peek of most of the homes and reject the duds, and then we'll schedule appointments to tour the houses whenever it's convenient for you.
As we tour the houses, we'll point out good features, as well as bad ones. And we'll ask you to point out what things you like and dislike. It's pretty common for buyers to change their must-have list as we tour homes and some items become more necessary than others. If that's the situation, we'll search the listings once more and trim it down to the house you've been wishing for.
Step 4 – Get a feel for the market
Our understanding of the market is an indispensable asset in your home search. We are mindful of all the school districts and neighborhoods, and we can alert you to some districts which are "hot" and require prompt action and the ones that are "cold" and allow for thoughtful examination.
As we tour houses, we'll be sure to tell you if the list price has room for negotiation or if we believe the home is "priced to sell." When working with a real estate team, be careful and be sure to ask a lot of questions, as every real estate agent will tell you they truly understand the market. If things don't add up, contact us at (626)243-4219 or e-mail us at RatliffandReisbeck@gmail.com, and we'll be happy to answer any questions you have. Our understanding of the market will keep you a step ahead through the entire deal.
Step 5 – Find the home you've been looking for
We're confident we'll find the house of your dreams. When we do, we'll precisely develop your purchase offer. The offer will be tailored with your needs in mind, including many contingencies. A few examples are acquiring financing, carrying out the inspection, and a clean title.
When sending in your offer, most likely you'll want to submit "earnest money." This is a cash deposit made to a seller to secure the offer to buy the property and is most often applied to the cost of closing. If your offer is accepted, we should close within 30 to 60 days after. This allows necessary time for your mortgage financing.
Step 6 – Negotiate
A lot of contracts aren't closed on the initial offer, and it's widely common to receive a counter offer. But don't let this alarm you. We'll discuss whether or not to agree to the counter offer, propose our own counter offer, or reject the seller's offer and move on.
Market circumstances will play a large role in how aggressively we negotiate the deal. We'll also work within your budget. And at the end of the day, we'll compose a contract that's best for you.
Step 7 – Secure a loan
After we sign the final sales contract, you'll start working with your lender to close the loan. If you're pre-approved, it won't take much time at all. However, you'll need to keep in close contact with your mortgage lender. And we'll care for all the property information your lender needs to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) outlining closing costs from your lender within three days of receiving your application. This estimate rests on the loan amount. RESPA requirements order that it has to include all closing costs and be within a tight range of accuracy, and we'll study the estimate and let you know if it all looks okay.
Then we'll close on your house. This will most likely occur at a title company or escrow office and will most often be a smooth and hassle-free affair.
Step 9 – Move in
Success! Now you can move into your new home. Enjoy it. And if you need anything or have any questions, make sure you call us at (626)243-4219 or email RatliffandReisbeck@gmail.com.
