With some up-front planning, purchasing a home isn't all that hard, but the event intimidates many people. So you know exactly what to expect, I like to give my buyers an overview of the whole deal. Here are my nine steps to purchasing a home.
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If you have questions regarding any of this information or if you're prepared to get started, simply contact me here or e-mail me at Homes@MallardProperty.com. |
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Step 1 – Get ready to buy a home
Prior to starting your home search, there are a lot of things you should do. You'll most likely want to assemble a check list of items you want, plan for what neighborhoods and school districts you'd like to live in, and begin planning your budget. Ensuring your mortgage payment is less than a third of your net monthly income is a good rule of thumb to adhere to.
Step 2 – Get with a real estate agent
This is where I come in. We'll schedule a time to meet so we can talk about why you want to buy a home and get an idea of your plans for the future. We'll talk about neighborhoods, school districts in the Middle Tennessee area, the mortgage industry, and any other economic factors that may affect your buying decision today or in the future.
In addition, I'll help you begin the loan process. I work with some of area's finest mortgage professionals, so you can rest assured that you're in great hands. They can help you determine which type of loan is best for you, as well as help you get qualified.
Step 3 – Start your search
After we meet, I'll start looking for available homes on the market that are a good fit for you. I'll research the homes, and then we'll set up appointments to view the homes at a time that's convenient for you.
When we view houses, I'll identify good features and negative ones. I'll also ask you to tell us about things you like and dislike. It's pretty common for buyers to change their list of must-haves as we view homes and some things become far more essential than others. If such is the case, I'll search the listings again and narrow it down to the house of your dreams.
Step 4 – Know the housing market
My knowledge of the area's home market is a crucial advantage in your home search. I am mindful of all the neighborhoods and schools, and I can alert you to certain neighborhoods are "hot" and demand immediate action and some that are "cool" and allow for cautiousness.
As we view homes, I'll let you know when the list price has room for negotiation and when I trust the home is "priced to sell." Be careful and make sure you ask plenty of questions, as every REALTOR® will tell you they know the market. If things don't add up, call me at (615)473-5973 or e-mail me at Homes@MallardProperty.com, and I'll be glad to answer any questions you may have. My knowledge of the market will help you stay a step ahead throughout the entire process.
Step 5 – Find the home you've been looking for
I'm sure we'll find your dream house in Middle Tennessee. When that happens, I'll carefully develop your purchase offer. The offer will be tailored to suit your needs, including some contingencies, such as obtaining financing, completing the home inspection, and a clear title.
When presenting your offer, you'll likely want to present "earnest money." This is a cash deposit made to the seller to secure the offer to purchase the property. The amount is most often applied to the cost of closing. If your offer is accepted by the seller, we should close within 30 to 60 days afterward. This allows enough time for your mortgage financing.
Step 6 – Negotiate
Most contracts don't close on the initial offer, and it's pretty common to receive a counter offer. Don't let it intimidate you. We'll consider whether or not to take the counter offer, present our own counter offer, or refuse the seller's offer and move on.
The state of the market determines how aggressively we negotiate the deal. In addition, we'll work within your financing budget. And when it's all said and done, we'll assemble a contract that works well for you.
Step 7 – Get financing
After we sign the final deal, you'll start working with your lender to close the loan. If you've been pre-approved, this won't be a long process at all, but you need to stay in close contact with your lender. And I'll take care of all the property information your mortgage lender needs to close the loan.
Step 8 – Close the deal
Your mortgage lender will send you a Good Faith Estimate (GFE) outlining your closing costs within three days of taking your loan application. You'll get a Good Faith Estimate (GFE) outlining closing costs from your mortgage lender within three days of accepting your loan application. The estimate is based on the loan amount. RESPA requirements require that it has to involve all closing costs and be within a close range of accuracy, and I'll study the estimate and let you know if everything looks okay.
Then it's time to close on your house. This will most likely happen at a title company or escrow office and is often a smooth and relaxed affair.
Step 9 – Move in
You made it! Now you can move into your new home. Enjoy it. And if you need anything or have any questions, simply call me at (615)473-5973 or send me an e-mail.
