Buying a home is an intimidating event for a lot of people, but with a little up-front planning, it isn't all that confusing. I like to provide buyers with a road map of the entire deal so they'll know exactly what they can expect. Below are my nine steps to purchasing a home.
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Should you have any questions about any of this information or if you're ready to get started, you can contact me here or e-mail me at tonys@shorewood.com. |
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Step 1 – Prepare to purchase
There are several things you need to take into account before you search for a home. When you begin your search, you'll probably want to assemble a check list of items you need, get an idea of what neighborhoods you want to live in, and start planning your budget. A good guideline to go by is that your mortgage payment should be around a third of your net monthly income.
Step 2 – Communicate with a real estate agent
This is where I come in. We'll schedule a time to meet so we can talk about your real estate needs and get an idea of your future plans. We'll discuss the mortgage industry, other economic factors that might affect your buying decision today or in the future, as well as neighborhoods and schools in the Hermosa Beach area.
In addition, I'll help you start the loan process. I partner with some of the finest mortgage professionals in Hermosa Beach, so you're in great hands. They'll assist you with deciding which kind of loan is best for you and help you get qualified.
Step 3 – Begin your home search
After our first meeting, I'll begin looking for homes on the market that are a good fit for you. I'll get a sneak peek of most of the houses and ignore the duds, and then we'll set up appointments to view the homes at a time that's convenient for you.
When we view the homes, I'll point out positive features, as well as bad ones. And I'll ask you what things you like and don't like. Frequently, buyers update their wish list as we view houses and some features become far more crucial than others. If that's the case, I'll look through the listings once more and narrow it down to the home you've been waiting for.
Step 4 – Get a grasp of the market
My understanding of the Hermosa Beach market is a valuable advantage in your house search. I am familiar with all the neighborhoods and school districts, and I can communicate which neighborhoods are "hot" and call for prompt action and the ones that are "cold" and allow for cautiousness.
As we view houses, I'll be sure to tell you if the asking price has room for negotiation or if I believe the home is "priced to sell." When working with an agent, be mindful and be sure to ask lots of questions, as every real estate agent will convince you they truly understand the housing market. If things don't add up, just call me at 310-406-2020 x6869 or e-mail me at tonys@shorewood.com, and I'd be more than happy 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 you've been waiting for
I'm sure we'll find your dream home in Hermosa Beach. When that happens, I'll carefully develop your home purchase offer. The offer will be tailored with your needs in mind, including some contingencies, such as obtaining financing, finishing the home inspection, and a clean title.
Upon turning in your offer, you'll likely need to submit "earnest money." This is a cash deposit given to a home seller to secure the offer to buy the property and is usually applied to the cost of closing. If the seller accepts the offer, we should close within 30 to 60 days afterward. This allows enough time for your mortgage financing.
Step 6 – Negotiate
Unfortunately most contracts aren't closed on the initial offer – it's extremely common to receive a counter offer. But don't let it intimidate you. We'll talk about whether or not to accept the counter offer, propose our own counter offer, or decline the seller's offer and go on.
Market conditions determine how aggressively we negotiate the contract. In addition, we'll work within your financing constraints. And at the end of the day, we'll assemble a contract that works well for you.
Step 7 – Get financing
Upon signing the contract, you'll begin working with your lender to close the loan. It shouldn't take long at all if you're pre-approved, but you'll want to keep in close contact with your mortgage lender. And I'll sort out 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 your closing costs from your mortgage lender within three days of getting your application. This estimate is formed from the loan amount, and RESPA requirements require that it has to involve all closing costs and be within a tight range of accuracy. I'll go over the estimate and let you know if it all looks all right.
Then we'll close on your house. This will most likely take place at a title company or escrow office and should be a smooth and calm event.
Step 9 – Move in
Congratulations! Now you can move into your new home. Enjoy it. And if you have any questions, simply call me at 310-406-2020 x6869 or send me an e-mail.
