For many people, buying a home is a stressful event. However, with a little up-front planning, it isn't too difficult. I like to give buyers an overview of the whole deal so they'll understand exactly what to expect. Here are my nine steps to buying a home.
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If you have questions regarding any of this information or if you're ready to get started, just contact me here or e-mail me at jkhomes22@johnkriza.com. |
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Step 1 – Get ready to purchase a home
There are a lot of things you'll want to do prior to beginning your home search. You'll most likely want to create a checklist of items you need, plan for what neighborhoods and school districts you want to live in, and begin working on your budget. Ensuring your mortgage payment is around a third of your net monthly income is a good guideline to follow.
Step 2 – Get with a real estate agent in the area
That's where I 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 future plans. We'll talk about neighborhoods, school districts in the area, the mortgage industry, and any additional economic factors that could affect your buying decision today or in the future.
In addition, I'll assist you with getting started on your loan. There are some great mortgage professionals in the area and I 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 qualified.
Step 3 – Start house-hunting
After we meet, I'll start searching for homes on the market that best suit you. I'll research many of the houses and eliminate the duds, and then we'll book appointments to view the houses when it's convenient for you.
When we view homes, I'll show you the good features, as well as bad ones. And I'll ask you to tell us about things you like and don't like. For the most part, buyers revise their must-have list as we tour homes and some things become far more essential than others. If that happens, I'll look through all the listings again and narrow it down to the home you've been waiting for.
Step 4 – Get a grasp of the housing market
Your agent's understanding of the local housing market is an essential factor in your home search. And I assure you I'm mindful of all the neighborhoods and schools, and I'll let you know which areas are "hot" and demand prompt action and the ones that are "cold" and allow for thoughtful analysis.
When we tour houses, I'll let you know when the asking price has room for bargaining and when I believe the home is "priced to sell." When working with an agent, be on guard and make sure you ask lots of questions. Every real estate agent will claim to truly know the home market. If things don't add up, contact me at (610) 416-6442 or e-mail me at jkhomes22@johnkriza.com, and I'll be more than happy to answer any questions you might have. My understanding of the market will help you stay a step ahead through the entire deal.
Step 5 – Find your dream house
I'm certain we'll find your dream home in the area. When we do, I'll precisely develop your home purchase offer. The offer will be tailored keeping your needs in mind, including a lot of contingencies. A few examples are getting financing, finishing the home inspection, and a clean title.
Upon sending in your purchase offer, you'll probably want to present "earnest money." This is a cash deposit made to the seller to secure the offer to purchase the property, and it's often put towards the closing costs. If the offer is accepted, we should close on the property about 30 to 60 days after. This allows necessary time for your mortgage financing.
Step 6 – Negotiate
Unfortunately most contracts aren't closed on the first offer – it's very common to receive a counter offer. Don't let it discourage you. We'll discuss whether or not to consent to the counter offer, propose our own counter offer, or refuse the seller's offer and go on.
The state of the market determines how aggressively we negotiate the deal. In addition, we'll work within your budget. And when it's all said and done, we'll create a contract that is best for you.
Step 7 – Obtain a loan
Upon finishing the deal, you'll start working with your mortgage lender to close the loan. If you're pre-qualified, it won't be a long process at all. But you should to keep in close contact with your lender. And I'll sort out all the property information your mortgage lender needs to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) detailing your closing costs from your mortgage lender within three days of getting your application. The estimate is based on the loan amount. RESPA requirements order that it has to contain all closing costs and fall within a narrow range of accuracy, and I'll study the estimate and let you know if everything looks okay.
Then it's time to close on your house. This will probably take place at a title company or escrow office and will likely be a smooth and relaxed occasion.
Step 9 – Move in
Success! Now you can move into your new house. Enjoy it. And if you have any questions, make sure you contact me at (610) 416-6442 or send me an e-mail.
