For a lot of people, purchasing a home is a stressful event. However, with some planning ahead of time, it isn't all that difficult.
I like to give buyers a road map of the entire deal so they'll know exactly what they can expect.
These are my nine steps to buying a home.
Step 1 – Prepare to purchase
Before you start looking for a home, there are many things you need to do.
When you start your search, you'll probably want to assemble an index of features you want to have, get an idea of what school districts and neighborhoods you want to live in, and start working on your budget.
Keeping your mortgage payment less than or around 30 percent of your net monthly income is a good guideline to go by.
Step 2 – Contact a real estate agent
That's where I come in.
We'll plan a time to get together so we can talk about your real estate needs and get an idea of your upcoming plans.
We'll talk about neighborhoods, schools in the San Diego area, the mortgage industry, and any other economic factors that could potentially affect your buying decision today or in the future.
I'll also help you facilitate the loan process.
There are some very good mortgage professionals in San Diego, and I work with a lot of them, so you can rest assured that you're in great hands.
They will help you choose which kind of loan is best for you, as well as help you get qualified.
Step 3 – Start looking for a house
After we meet, I'll start finding available homes on the market that are great for you.
I'll preview many of the homes and exclude the bad ones, and then we'll book appointments to tour the homes when it's most convenient for you.
As we view the houses, I'll show you the good features and bad ones. And I'll ask you to talk about things you like and dislike.
It's common for buyers to update their must-have list as we view houses and some features become more essential than others.
If that's the case, I'll go back through the listings one more time and narrow it down to the home you've been dreaming about.
Step 4 – Get a grasp of the market
An agent's knowledge of the San Diego housing market is an imperative factor in your home search. And I assure you I'm familiar with all the school districts and neighborhoods, and I will let you know which neighborhoods are "hot" and warrant prompt action and others that are "cool" and allow for cautiousness.
As we view homes, I'll let you know when the seller's asking price has room for negotiation and also when I think the house is "priced to sell."
Every real estate agent in San Diego will tell you they truly know the housing market, but trust your instincts, and make sure you ask a lot of questions.
If things don't add up, just call me at (619) 260-0900 or e-mail me at info@jconnerrealestate.com, and I'll be happy to answer your questions. My understanding of the market will help you stay a step ahead through the entire deal.
Step 5 – Find the home you've been looking for
I'm sure we'll find your dream house in the San Diego area, and when we do, I'll thoroughly develop your real estate purchase offer. The offer will be tailored with your needs in mind. Whenever necessary, I never forget to make contracts contingent upon items like obtaining financing and the results of the home inspection.
When submitting your offer, you'll probably need to present "earnest money." This is a cash deposit given to a home seller to secure an offer to buy the property. The amount is usually put towards the cost of closing. If your offer is accepted, we should close on the home about 30 to 60 days after. This allows sufficient time for your mortgage financing.
Step 6 – Negotiate
A lot of deals aren't closed on the initial offer, and it's pretty common to receive a counter offer. Don't let it discourage you. We'll figure out whether or not to take the counter offer, submit our own counter offer, or refuse the seller's offer and go on.
Market circumstances will play a large role in how aggressively we negotiate the deal.
We'll also work within your budget. And when it's all said and done, we'll formulate a contract that is best for you.
Step 7 – Secure financing
Once the deal is finalized, you'll begin working with your mortgage lender to close the loan.
If you've been pre-approved, this won't take very long at all, but you need to keep in close contact with your mortgage lender.
And I'll handle all the property information your lender needs to close the loan.
Step 8 – Close the deal
Your mortgage lender will provide you with a Good Faith Estimate (GFE) detailing your closing costs within three days of accepting your application. You'll get a Good Faith Estimate (GFE) detailing closing costs from your lender within three days of accepting your application.
The estimate rests on the loan amount, and RESPA requirements order that it has to include all closing costs and fall within a close range of accuracy. I'll go over the estimate and let you know if everything looks okay.
Then it's time to close on your home. This will likely take place at a title company or escrow office and should be a smooth and easygoing occasion.
Step 9 – Move in
Success! Now you can move into your new house. Enjoy it. And if you need anything, be sure to call me at (619) 260-0900 or send me an e-mail.
