Purchasing a home can be stressful for most people. However, with a bit of planning ahead of time, it's not that complex.
I like to give buyers a road map of the entire deal so they understand exactly what they can expect.
Below are my nine steps to purchasing a home.
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If you have any questions regarding this information or if you're ready to get started, simply contact me here or e-mail me at megmike@myfamilyhouses.com.
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Step 1 – Prepare to purchase
There are many things you need to contemplate before starting your home search.
When you begin your search, you'll probably want to make an index of items you want, get a plan of what school districts you want to live in, and begin planning your budget.
Ensuring your mortgage payment is less than or close to 30 percent of your monthly income is a good rule to go by.
Step 2 – Contact a real estate agent
This is where Prudential Rocky Mountain Realtors comes in.
We'll schedule a time to get together so we can talk about your real estate needs and get an idea of your future plans.
We'll talk about neighborhoods, schools in the Boulder area, the mortgage and housing industries, and any additional economic factors that might affect your purchase today or in the future.
I'll also help you get started on your loan.
There are some great mortgage professionals in Boulder, and I work with a lot of them, so you'll be in great hands.
They will assist you in figuring out which type of loan is best for you and help you get approved.
Step 3 – Begin house hunting
After our initial meeting, I'll begin looking for available houses on the market that are a good fit for you.
I'll get a sneak peek of many of the homes and exclude the duds, and then we'll schedule appointments to tour the homes whenever it's most convenient for you.
As we view homes, I'll point out good features and negative ones. And I'll ask you to point out what things you like and don't like.
For the most part, buyers update their list of must-haves as we tour houses and some things become far more important than others.
If such is the case, I'll look through the listings once more and trim it down to the house you've been waiting for.
Step 4 – Know the housing market
My knowledge of the Boulder housing market is a fundamental benefit in your home search. I'm acquainted with all the neighborhoods and school districts, and I can communicate some neighborhoods are "hot" and call for prompt action and others that are "cold" and allow for careful consideration.
As we view houses, I'll make sure to communicate if the list price has room for negotiation or if I believe the house is "priced to sell."
When working with an agent, be careful and be sure to ask a lot of questions. Any REALTOR® in Boulder will convince you they know the home market.
If it appears they don't know everything, call me at 303-219-0789 or e-mail me at megmike@myfamilyhouses.com, and I'll be glad to answer any questions you might have. My market knowledge will help you stay a step above the rest throughout the entire deal.
Step 5 – Find the house you've been looking for
I'm sure we'll find your dream home in the Boulder area. When we do, I'll meticulously create your home purchase offer. The offer will be tailored to suit your needs, including several contingencies. A few examples are obtaining financing, completing the home inspection, and a clear title.
When we present your purchase offer, you'll probably need to submit "earnest money." This is a cash deposit made to the home seller to secure an offer to buy the property, and it's usually applied to the closing costs. If your offer is accepted, we should close about 30 to 60 days after. This allows necessary time for your mortgage financing.
Step 6 – Negotiate
A lot of deals don't close on the beginning offer. It's pretty common to receive a counter offer. Don't let it intimidate you. We'll talk about whether or not to agree to the counter offer, propose our own counter offer, or decline the seller's offer and go on.
How aggressively we negotiate the contract depends on market circumstances.
In addition, we'll work within your financing budget. And when it's all said and done, we'll assemble a contract that works well for you.
Step 7 – Obtain a loan
Upon completion of the deal, you'll begin working with your mortgage lender to close the loan.
If you're pre-qualified, this shouldn't be a long process at all. However, you should to stay in close contact with your mortgage 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) outlining your closing costs from your lender within three days of getting your application.
The estimate rests on the loan amount. RESPA requirements dictate that it has to involve all closing costs and be within a strict range of accuracy, and I'll examine the estimate and let you know if everything looks good.
Then it's time to close on your house. This will most often occur at a title company or escrow office and will probably be a smooth and comfortable occasion.
Step 9 – Move in
Congratulations! It's time to move into your new house. Enjoy it. And if you need anything, make sure you contact me at 303-219-0789 or send me an e-mail.
