Purchasing a home is a stressful event for most people. However, with a bit of planning ahead of time, it's not all that complicated.
I like to provide buyers with an outline of the entire deal so they'll know exactly what to expect.
Here are my nine steps to purchasing a home.
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If you have questions about this information or if you're prepared to get started, you can contact me here or e-mail me at tonys@shorewood.com.
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Step 1 – Prepare to buy
There are many things you'll want to consider before commencing your home search.
You'll want to assemble a checklist of items you want to have, get a feel for what school districts and neighborhoods you'd like to live in, and start planning your budget.
Ensuring your mortgage payment is less than or around 30 percent of your net monthly income is a good guideline to follow.
Step 2 – Speak with a real estate agent
That's where I come in.
We can 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 discuss neighborhoods, schools in the Hermosa Beach area, the mortgage industry, and any additional economic factors that may potentially affect your purchase today or in the future.
I'll also help you start the loan process.
There are some excellent mortgage professionals in Hermosa Beach, and I partner with a lot of them, so you'll be in great hands.
They can assist you with determining which type of loan is best for you and help you get approved.
Step 3 – Start looking for a home
After we meet for the first time, I'll begin searching for homes on the market that suit your needs.
I'll preview most of the houses and ignore the bad ones, and then we'll book appointments to tour the homes whenever it's convenient for you.
When we tour the houses, I'll show you the positive features, as well as negative ones. And I'll ask you to point out what things you like and dislike.
It's widely common for buyers to update their must-have list as we tour homes and some features become far more crucial than others.
If that's the case, I'll go back through all the listings once again and trim it down to the home you've been dreaming about.
Step 4 – Know the housing market
My awareness of the Hermosa Beach housing market is a crucial asset in your home search. I am informed of all the schools and neighborhoods, and I can communicate certain areas are "hot" and demand prompt action and the ones that are "cool" and allow for careful analysis.
As we view homes, I'll let you know when the asking price has room for bargaining and when I think the house is "priced to sell."
When working with an agent, trust your instincts and be sure to ask plenty of questions. Any real estate agent will convince you they understand the housing market.
If things don't add up, just call me at 310-346-4123 or e-mail me at tonys@shorewood.com, and I'd be happy to answer any questions you have. My knowledge of the market will help you stay a step ahead throughout the entire process.
Step 5 – Find the home of your dreams
I'm sure we'll find the home of your dreams in Hermosa Beach. When that happens, I'll meticulously develop your home purchase offer. The offer will be tailored to suit your needs, including a lot of contingencies. A few examples are getting financing, carrying out the inspection, and a clean title.
When submitting your purchase offer, most likely you'll need to present "earnest money." This is a cash deposit made to the seller to secure the offer to purchase the property. The amount is typically applied to the closing costs. If your offer is accepted by the seller, we should close about 30 to 60 days after. This allows sufficient time for your mortgage financing.
Step 6 – Negotiate
Most contracts aren't closed on the beginning offer, and it's extremely common to receive a counter offer. Don't let this intimidate you. We'll figure out whether or not to take the counter offer, propose our own counter offer, or reject the seller's offer and move on.
How aggressively we negotiate the deal depends on the state of the market.
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 – Obtain your loan
After we sign the final contract, you'll begin working with your mortgage lender to close the loan.
If you're already pre-qualified, it shouldn't take long at all, but you need to keep in close contact with your mortgage lender.
And I'll look after 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 require that it has to involve all closing costs and fall within a precise 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 likely happen at a title company or escrow office and should be a smooth and hassle-free occurrence.
Step 9 – Move in
Congratulations! Now you can move into your new house. Enjoy it. And if you need anything, be sure to contact me at 310-346-4123 or send me an e-mail.
