Buying a home is stressful for most people, but with a bit of up-front planning, it's not very complicated. I like to give buyers an overview of the whole deal so they'll understand exactly what they can expect. These are my nine steps to purchasing a home.
Step 1 – Get ready to buy a home
Before you start searching for a home, there are many things you need to take into account. When you begin your search, you'll want to create a list of features you want to have, get a feeling for what neighborhoods you want to live in, and begin working on your budget. Ensuring your mortgage payment is less than a third of your net monthly income is a good principle to adhere to.
Step 2 – Get with a real estate agent in Southport
That's where I come in. We'll set up a time to get together 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 Southport area, the mortgage industry, to any other economic factors that may affect your purchase today or in the future.
I'll also help you facilitate the loan process. There are some very good mortgage professionals in Southport, and I partner with a lot of them, 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 your home search
Following our first meeting, I'll start looking for available houses on the market that meet your needs. I'll preview many of the houses and remove the bad ones, and then we'll book appointments to view the houses at a time that's convenient for you.
As we view the houses, I'll show you the good features and bad ones. I'll even ask you about things you like and don't like. As a rule, buyers update their must-have list as we view houses and some items become far more substantial than others. If such is the case, I'll go back through the listings once more and narrow it down to the house you've been waiting for.
Step 4 – Get a feel for the market
My knowledge of the Southport market is a valuable advantage in your search. I am conscious of all the school districts and neighborhoods, and I'll alert you to which districts are "hot" and call for prompt action and the ones that are "cold" and allow for more analysis.
As we tour houses, I'll be sure to tell you if the seller's asking price has room for negotiation or if I believe the home is "priced to sell." Trust your instincts and be sure to ask your agent lots of questions, as every real estate agent in Southport will tell you they know the home market. If it doesn't seem like they know everything, call me at (910) 262-7705 or e-mail me at hank@mybrokerhank.com, and I'd be glad to answer any questions you have. My knowledge of the market will keep you a step above the rest through the entire deal.
Step 5 – Find the home of your dreams
I'm sure we'll find your dream house in the Southport area. When that happens, I'll thoroughly develop your home purchase offer. The offer will be tailored exactly to your needs, including several contingencies, such as obtaining financing, finishing the home inspection, and a clear title.
Upon submitting your offer, most likely you'll need to present "earnest money." This is a cash deposit made to a seller to secure an offer to purchase the property and is often put towards the closing costs. If your offer is accepted, we should close about 30 to 60 days afterward. This allows plenty of time for your mortgage financing.
Step 6 – Negotiate the deal
Most contracts don't close on the beginning offer. It's pretty common to receive a counter offer. But don't let this discourage you. We'll consider whether or not to take the counter offer, propose our own counter offer, or decline the seller's offer and go on.
Market conditions determine how aggressively we negotiate the contract. We'll also work within your financing constraints. And at the end of the day, we'll assemble a deal that works well for you.
Step 7 – Obtain financing
Once we sign the final sales contract, you'll begin working with your mortgage lender to close the loan. It won't take long at all if you're already pre-qualified, but you need to stay in close contact with your lender. And I'll manage 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) detailing your closing costs from your mortgage lender within three days of receiving your application. This estimate depends on the loan amount. RESPA requirements dictate that it has to involve all closing costs and fall within a close range of accuracy, and I'll examine the estimate and let you know if everything looks okay.
Then it's time to close on your home. This should occur at a title company or escrow office and will likely be a smooth and stress-free affair.
Step 9 – Move in
Success! Now you can move into your new home. Enjoy it. And if you need anything, simply call me at (910) 262-7705 or send me an e-mail.
