Purchasing a home is intimidating for a lot of people. However, with a bit of planning ahead of time, it's not very difficult.
So you understand exactly what to expect, I like to furnish my buyers with an outline of the entire deal.
Here are my nine steps to purchasing a home.
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Should you have questions about this information or if you're prepared to get started, you can contact me here or e-mail me at willb@bowlingappraisals.com.
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Step 1 – Get ready to buy a home
There are many things you need to contemplate before commencing your home search.
You'll probably want to make an outline of features you need, get a plan of what school districts and neighborhoods you'd like to live in, and begin planning your budget.
A good guideline to adhere to is that your mortgage payment should be around 1/3 of your monthly income.
Step 2 – Get with a real estate agent in Somerville
This is where I come in.
I'd be happy to schedule a time to meet with you and talk about your real estate needs and get an idea of your future plans.
We'll discuss the mortgage industry, other economic factors that could affect your purchase today or in the future, as well as neighborhoods and schools in the Somerville area.
I can also assist you in getting started on your loan.
There are some very good mortgage professionals in Somerville, and I partner with a lot of them, so you can rest assured that you're in great hands.
They'll help you decide which type of loan is best for you, as well as help you get approved.
Step 3 – Begin looking for a house
After our initial meeting, I'll start finding houses on the market that best suit you.
I'll preview many of the homes and eliminate the bad ones, and then we'll set up appointments to tour the homes when it's most convenient for you.
As we view the homes, I'll point out good features and bad ones. I'll even ask you what things you like and dislike.
Most often, buyers revise their wish list as we view houses and some items become far more substantial than others.
If that happens, I'll look through all the listings once more and narrow it down to the home you've been waiting for.
Step 4 – Know the market
Your agent's awareness of the Somerville housing market is an imperative element in your home search. And I assure you I'm familiar with all the school districts and neighborhoods, and I will let you know some neighborhoods are "hot" and warrant immediate action and some that are "cold" and allow for careful examination.
When we view homes, I'll be sure to tell you 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 make sure you ask lots of questions, as every real estate agent will convince you they know the housing market.
If it appears they don't know everything, just call me at 901.465.6560 or e-mail me at willb@bowlingappraisals.com, and I'd be more than happy to answer any questions you might have. My understanding of the market will help you stay a step above the rest throughout the entire deal.
Step 5 – Find the house you've been waiting for
I know we'll find the home of your dreams in Somerville, and when we do, I'll carefully develop your purchase offer. The offer will be made exactly to your needs. Whenever necessary, I never forget to make contracts contingent upon items like your ability to secure financing and the results of the home inspection.
When submitting your purchase offer, you'll need to present "earnest money." This is a cash deposit given to a seller to secure an offer to buy the property, and it's often put towards the cost of closing. If your offer is accepted, we should close about 30 to 60 days after. This allows plenty of time for your mortgage financing.
Step 6 – Negotiate
Unfortunately most deals don't close on the first offer – it's really common to receive a counter offer. But don't let this discourage you. We'll talk over whether or not to agree to the counter offer, present our own counter offer, or decline the seller's offer and move on.
Market conditions determine how aggressively we negotiate the contract.
In addition, we'll work within your budget. And when it's all said and done, we'll put together a deal that works well for you.
Step 7 – Get your loan
After the deal is signed, you'll start working with your lender to close the loan.
If you're pre-qualified, this shouldn't take very long at all. However, you'll want to keep in close contact with your lender.
And I'll handle all the property information your mortgage lender needs to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) detailing your closing costs from your mortgage lender within three days of getting your application.
This estimate rests on the loan amount, and RESPA requirements require that it has to include all closing costs and be within a strict range of accuracy. I'll analyze the estimate and let you know if it all looks all right.
Then it's time to close on your home. This will most likely happen at a title company or escrow office and will most likely be a smooth and relaxing occurrence.
Step 9 – Move in
You made it! It's time to move into your new house. Enjoy it. And if you need anything or have any questions, make sure you contact me at 901.465.6560 or send me an e-mail.
