For a lot of people, buying a home can be a stressful event. But with a little up-front planning, it's not all that difficult. I like to provide buyers with a road map of the entire deal so they understand exactly what to expect. These are my nine steps to buying a home.
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When you're ready to get started, you can contact me here or send e-mail to yardtoyard@triplediamondgroup.com. I'm glad to address any questions you have about this information. |
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Step 1 – Prepare to purchase
Before you start looking for a home, there are many things you should do. When you start your search, you'll want to put together an index of items you need, get a plan of what school districts and neighborhoods you'd like to live in, and begin working on your budget. A good principle to adhere to is that your mortgage payment should be a third of your net monthly income.
Step 2 – Speak with a real estate agent
This is where I can help. We'll schedule a time to meet so we can talk about your real estate needs and get an idea of your plans for the future. We'll discuss neighborhoods, school districts in the area, the mortgage industry, and any other economic factors that may potentially affect your purchase today or in the future.
I'll also help you begin the loan process. There are some excellent mortgage professionals in Southern California, and I partner with a lot of them, so you'll be in great hands. They will help you figure out which kind of loan is best for you, as well as help you get qualified.
Step 3 – Start looking for a house
After our first meeting, I'll start searching for homes on the market that meet your needs. I'll research many of the homes and eliminate the duds, and then we'll schedule appointments to view the homes when it's most convenient for you.
When we view the houses, I'll show you the good features, as well as negative ones. I'll even ask you to talk about things you like and don't like. It's common for buyers to amend their must-have list as we tour houses and some items become far more necessary than others. If that's the situation, I'll look through all the listings another time and narrow it down to the house you've been waiting for.
Step 4 – Know the housing market
My awareness of the Southern California market is a fundamental resource in your house search. I am familiar with all the school districts and neighborhoods, and I can communicate some districts are "hot" and warrant immediate action and the ones that are "cold" and allow for more examination.
When we view houses, I'll make sure to communicate when the list price has room for negotiation and also when I believe the home is "priced to sell." When working with an agent, trust your instincts and make sure you ask a lot of questions. Any REALTOR® will claim to truly know the market. If it appears they don't know everything, contact me at 909 542-2222 or e-mail me at yardtoyard@triplediamondgroup.com, and I'd be happy to answer any questions you have. My knowledge of the market will keep you a step above the rest throughout the entire deal.
Step 5 – Find the home you've been looking for
I'm certain we'll find your dream house in Southern California. When that happens, I'll meticulously create your home purchase offer. The offer will be tailored exactly to your needs, including many contingencies, such as getting financing, finishing the home inspection, and a clean title.
Upon presenting your purchase offer, you'll probably need to present "earnest money." This is a cash deposit submitted to a seller to secure the offer to buy the property. The amount is usually put towards the cost of closing. If the offer is accepted by the seller, we should close on the property within 30 to 60 days afterward. This allows sufficient time for your mortgage financing.
Step 6 – Negotiate
A lot of deals don't close on the beginning offer – it's extremely common to receive a counter offer. But don't let it alarm you. We'll discuss whether or not to consent to the counter offer, present our own counter offer, or reject the seller's offer and move on.
Market conditions determine how aggressively we negotiate the contract. In addition, we'll work within your financing limits. And at the end of the day, we'll compose a contract that works well for you.
Step 7 – Secure a loan
Upon completion of the contract, you'll start working with your mortgage lender to close the loan. If you're pre-approved, this shouldn't take long at all. But you need to keep in close contact with your lender. And I'll deal with all the property information your lender will need to close the loan.
Step 8 – Close the deal
Your mortgage lender will supply you with a Good Faith Estimate (GFE) of closing costs within three days of getting your loan application. You'll get a Good Faith Estimate (GFE) detailing your closing costs from your lender within three days of getting your application. The estimate is based on the loan amount, and RESPA requirements order that it has to involve all closing costs and fall within a narrow range of accuracy. I'll go over the estimate and let you know if everything looks all right.
Then we'll close on your home. This will probably occur at a title company or escrow office and will most often be a smooth and hassle-free event.
Step 9 – Move in
Success! It's time to move into your new house. Enjoy it. And if you have any questions, be sure to call me at 909 542-2222 or send me an e-mail.