With a little up-front planning, buying a home isn't that complex, but the event intimidates a lot of people. I like to supply buyers with an overview of the whole deal so they'll know exactly what to expect. Here are my nine steps to purchasing a home.
Step 1 – Prepare to purchase a home
There are several things you need to do before you search for a home. You'll want to create a checklist of items you want to have, plan for what school districts you want to live in, and begin planning around your budget. Ensuring your mortgage payment is less than or around a third of your net monthly income is a good rule of thumb to follow.
Step 2 – Contact a real estate agent
This is where I come in. We can schedule a time to meet so we can talk about why you want to buy a home and get an idea of your upcoming plans. We'll discuss everything from neighborhoods, school districts in the Orange and Anaheim Hills 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 start the loan process. First Team Real Estate partners with some of the finest mortgage professionals in Anaheim Hills and East Orange County, so you can rest assured that you're in great hands. They can help you decide which type of loan is best for you, as well as help you get qualified.
Step 3 – Start house-hunting
After we meet for the first time, I'll begin searching for homes on the market that are a great fit for you. I'll research most of the houses and throw out the duds, and then we'll set up appointments to view the homes when it's most convenient for you.
When we view the homes, I'll call attention to good features and bad ones. I'll even ask you what things you like and don't like. It's pretty common for buyers to revise their wish list as we view homes and some features become more necessary than others. If such is the case, I'll search all the listings one more time and trim it down to the house you've been wishing for.
Step 4 – Know the housing market
My understanding of the Anaheim Hills and Orange market is an indispensable resource in your house search. I am acquainted with all the neighborhoods and school districts, and I'll let you know certain neighborhoods are "hot" and warrant immediate action and some that are "cold" and allow for more analysis.
As we tour homes, I'll make sure to communicate when the seller's list price has room for negotiation and when I believe the home is "priced to sell." Be careful and be sure to ask your agent a lot of questions, as every REALTOR® in Anaheim Hills will tell you they comprehend the housing market. If it appears they don't know everything, call me directly at 714-336-7463 or e-mail me at michael@experthlc.com, and I'd be more than happy to answer your questions. My understanding of the market will help you stay a step above the rest throughout the entire process.
Step 5 – Find the home you've been waiting for
I'm positive we'll find the house of your dreams in the Anaheim Hills area. When we do, I'll meticulously develop your 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 we submit your purchase offer, you'll need to present "earnest money." This is a cash deposit given to a home seller to secure an offer to purchase the property. The amount is usually applied to the cost of closing. If the seller accepts the offer, we should close on the property about 30 to 60 days afterward. This allows ample time for your mortgage financing.
Step 6 – Negotiate the deal
A lot of deals aren't closed on the beginning offer – it's pretty common to receive a counter offer. But don't let it alarm you. We'll talk over whether or not to agree to the counter offer, submit our own counter offer, or reject the seller's offer and move on.
Market circumstances will play a large role in how aggressively we negotiate the contract. In addition, we'll work within your financing constraints. And when it's all said and done, we'll formulate a contract that's best for you.
Step 7 – Obtain a loan
After the contract is finalized, you'll begin working with your lender to close the loan. If you're pre-approved, it won't be a long process at all. However, you'll need to stay in close contact with your mortgage lender. And I'll care for all the property information your lender will need to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) outlining closing costs from your lender within three days of accepting your application. This estimate is based on the loan amount, and RESPA requirements mandate that it has to contain all closing costs and be within a close range of accuracy. I'll examine the estimate and let you know if it all looks adequate.
Then it's time to close on your house. This should occur at a title company or escrow office and should be a smooth and pleasant affair.
Step 9 – Move in
Success! Now you can move into your new home. Enjoy it. And if you need anything, just contact me at 714-336-7463 or send me an e-mail.
