Purchasing a home is an intimidating event for many people. However, with a bit of planning ahead of time, it's not too complex. I like to give buyers an outline of the whole deal so they'll know exactly what to expect. Below are my nine steps to buying a home.
Step 1 – Get ready to purchase
Prior to beginning your home search, there are many things you need to take into account. You'll want to create a checklist of features you need to have, get a plan of what neighborhoods you'd like to live in, and begin working on your budget. A good rule to follow is that your mortgage payment should be 1/3 of your monthly income.
Step 2 – Speak with a real estate agent
This is where Wilkinson & Associates can help. I'd like to arrange a time to get together with you and speak with you regarding your real estate needs and get an idea of your future plans. We'll discuss everything from neighborhoods, school districts, the mortgage industry, to any other economic factors that might affect your buying decision today or in the future.
I'll also assist you with getting started on your loan. I partner with some of the area's best mortgage professionals, so you're in great hands. They can help you determine which kind of loan is best for you, as well as help you get qualified.
Step 3 – Start your search
After our first meeting, I'll start searching for houses on the market that are good for you. I'll research most of the houses and reject the duds, and then we'll set up appointments to view the homes at a time that's convenient for you.
As we view the homes, I'll identify positive features and bad ones. I'll also ask you what things you like and don't like. It's common for buyers to update their must-have list as we view homes and some features become far more crucial than others. If that's the situation, I'll search the listings once more and trim it down to the house you've been waiting for.
Step 4 – Understand the market
My understanding of the housing market is a valuable asset in your search. I'm informed of all the schools and neighborhoods, and I will let you know certain areas are "hot" and require immediate action and some that are "cold" and allow for careful examination.
When we view houses, I'll let you know if the list price has room for bargaining or if I believe the house is "priced to sell." When working with an agent, be careful and be sure to ask lots of questions, as every real estate agent will convince you they truly know the housing market. If it doesn't seem like they know everything, call me at 910-443-0529 or e-mail me at info@wilkinsoncoastal.com, and I'll be glad to answer any questions you might have. My understanding of the market will keep you a step ahead through the entire deal.
Step 5 – Find the home of your dreams
I'm certain we'll find your dream house in the area. When we do, I'll meticulously develop your real estate purchase offer. The offer will be tailored exactly to your needs, including some contingencies, such as obtaining financing, completing the home inspection, and a clean title.
When we present your purchase offer, you'll likely need to present "earnest money." This is a cash deposit given to the seller to secure an offer to purchase the property. The amount is often applied to the closing costs. If your offer is accepted, we should close on the home about 30 to 60 days afterward. This allows ample time for your mortgage financing.
Step 6 – Negotiate the deal
A lot of contracts don't close on the first offer, and it's pretty common to receive a counter offer. Don't let this intimidate you. We'll discuss whether or not to agree to the counter offer, present our own counter offer, or decline the seller's offer and go on.
How aggressively we negotiate the contract depends on market circumstances. We'll also work within your budget. And when it's all said and done, we'll compose a contract that is best for you.
Step 7 – Secure a loan
Once the contract is finalized, you'll begin working with your lender to close the loan. This won't take very long at all if you're pre-approved, but you need to keep in close contact with your lender. And I'll take care of all the property information your mortgage lender will need to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) outlining your closing costs from your lender within three days of getting your loan application. The estimate rests on the loan amount. RESPA requirements order that it has to include all closing costs and be within a close range of accuracy, and I'll review the estimate and let you know if everything looks good.
Then we'll close on your house. This will most often occur at a title company or escrow office and will likely be a smooth and peaceful occasion.
Step 9 – Move in
Success! It's time to move into your new home. Enjoy it. And if you have any questions, make sure you contact me at 910-443-0529 or send me an e-mail.
