With some planning ahead of time, buying a home isn't very difficult, but the event is intimidating for many people. I like to furnish 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.
Step 1 – Get ready to buy a home
Before you start your home search, there are plenty of things you should consider. When you start your search, you'll want to form a list of features you need, get an idea of what neighborhoods you want to live in, and start working on your budget. Keeping your mortgage payment less than or around a third of your net monthly income is a good rule to adhere to.
Step 2 – Contact a real estate agent in Eureka
This is where Tri-County Realty comes in. We can arrange a time to get together so we can talk about your real estate needs and get an idea of your future plans. We'll discuss everything from neighborhoods, schools in the Eureka area, the mortgage and housing industries, to any other economic factors that may potentially affect your buying decision today or in the future.
In addition, I'll help you begin the loan process. There are some very good mortgage professionals in Eureka, and I partner with a lot of them, so you're in great hands. They can help you figure out which type of loan is best for you, as well as help you get approved.
Step 3 – Start your home search
After our initial meeting, I'll start looking for homes on the market that are a great fit for you. I'll research most of the houses and exclude the duds, and then we'll set up appointments to view the houses when it's most convenient for you.
As we view homes, I'll point out positive features, as well as bad ones. I'll also ask you what things you like and dislike. Usually, buyers update their must-have list as we tour houses and some things become more important than others. If such is the case, I'll search all the listings again and trim it down to the house you've been wishing for.
Step 4 – Get a grasp of the housing market
Your agent's knowledge of the Eureka housing market is a necessary factor in your house search. And I can assure you I'm conscious of all the school districts and neighborhoods, and I can let you know some neighborhoods are "hot" and demand immediate action and some that are "cool" and allow for careful examination.
As we view homes, I'll let you know when the list price has room for bargaining and also when I trust the house is "priced to sell." Any real estate agent will claim to know the housing market, but be on guard, and be sure to ask lots of questions. If it doesn't seem like they know everything, contact me at 636 938-3530 or e-mail me at carmfield@tricountyr.com, and I'd be glad to answer any questions you may have. My market knowledge will help you stay a step ahead throughout the entire process.
Step 5 – Find the house you've been waiting for
I know we'll find your dream house in Eureka. When we do, I'll precisely create your real estate purchase offer. The offer will be tailored to suit your needs, including several contingencies. A few examples are obtaining financing, carrying out the home inspection, and a clean title.
When we submit your purchase offer, you'll likely need to present "earnest money." This is a cash deposit submitted to the seller to secure an offer to purchase the property and is usually put towards the closing costs. If the offer is accepted, we should close on the home within 30 to 60 days afterward. This allows ample time for your mortgage financing.
Step 6 – Negotiate the deal
A lot of contracts aren't closed on the beginning offer, and it's very common to receive a counter offer. Don't let this discourage you. We'll talk about whether or not to agree to the counter offer, present our own counter offer, or reject the seller's offer and go on.
The state of the market will play a vital role in how aggressively we negotiate the deal. We'll also work within your financing budget. And when it's all said and done, we'll compose a deal that's best for you.
Step 7 – Secure financing
Once the contract is signed, you'll start working with your lender to close the loan. This shouldn't be a long process at all if you've been pre-qualified, but you should to keep in close contact with your mortgage lender. And I'll deal with 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) detailing closing costs within three days of receiving your application. You'll get a Good Faith Estimate (GFE) of your closing costs from your mortgage lender within three days of taking your application. The estimate is formed from the loan amount. RESPA requirements order that it has to include all closing costs and fall within a close range of accuracy, and I'll examine the estimate and let you know if it all looks all right.
Then it's time to close on your home. This should happen at a title company or escrow office and is often a smooth and peaceful event.
Step 9 – Move in
Success! Now you can move into your new home. Enjoy it. And if you have any questions, just call me at 636 938-3530 or send me an e-mail.
