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 home is making the decision to buy. Consider the reasons you want a new home and write them down. Determine how long you want to live in the new home - does buying still make good financial sense? Can you afford a home 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

I'd like to schedule a time to meet with you to hear your plans for the future. We'll talk about neighborhoods, schools, economic factors liable to affect the market today and tomorrow.

At this time, if you are not already pre-qualified, I will also help you to get started in that direction. Pre-qualification is a written statement from a loan officer indicating his or her opinion that you will be approved for a mortgage loan up to a certain amount. The fact that you are pre-qualified will help me when I are negotiating the deal.

Step 3 - Begin the Hunt

After our initial meeting, I'll search all my resources for homes on the market that fit your criteria. I will provide you with an ongoing list of the homes. I ask that you drive by the homes to make certain that they look satisfactory to you from the exterior and so that you can see the neighborhood. Then, I'll schedule appointments to tour the homes at times convenient to you.

As I tour homes, I'll point out positive and negative features. I'll ask you to tell me what you like and what you don't like. You'll probably amend your "wish list" as I tour homes, some things will become more important and others less important. With this new information, I'll refine our search criteria to narrow in on the home of your dreams.

Step 4 - Know the Market

My knowledge of the local market is an essential factor in the home search. I'll let you know when the market in a particular neighborhood or at a particular time of year is "hot" and requires immediate action or when the market is "cool" and allows for thoughtful consideration.

As I tour homes, I'll let you know when the asking price has negotiating room and when the home is "priced to sell". My unique market knowledge will keep you a step ahead of the "home hunting competition". I will be happy to run reports of "solds" that will show you List Price vs Sold Price.

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 homes for sale than buyers. This gives me more negotiating room as homes are taking longer to sell.

Step 5 - Find Your Dream Home

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

The offer is normally presented with "earnest money". This is a cash deposit made to a home seller to secure an offer to buy the property. In our local area this amount is customarily about 1% of the purchase price. $1,000. for a $100,000. home. This is not an additional charge to you, it is applied to the purchase price of the home. If the seller accepts the offer, generally closing is held 30 days from the offer date (generally dependent on the turn around time of your mortgage financing).

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 discus the counter offer and decide whether or not to accept the counter offer, submit our own counter offer, or reject it 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 pre-qualified 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.

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. The estimate is based on the loan officer's past experience.

Step 9 - Move In

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