With a little up-front planning, buying a home isn't too complex, but the event is intimidating for a lot of people.
I like to furnish buyers with an outline of the whole deal so they understand exactly what they can expect.
These are my nine steps to buying a home.
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When you're ready to get started, just contact me here or send e-mail to soldbyrachel@mac.com. I'm happy to address any questions you have about this information.
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Step 1 – Prepare to buy
There are several things you'll want to do prior to beginning your home search.
When you begin your search, you'll want to form a list of must-haves, get an idea of what school districts you want to live in, and start planning your budget.
Ensuring your mortgage payment is less than or around 30 percent of your net monthly income is a good rule of thumb to follow.
Step 2 – Communicate with a real estate agent
That's where I can help.
I'd love to arrange a time to meet with you and speak with you regarding your real estate needs and get an idea of your upcoming plans.
We'll discuss the mortgage and housing industries, other economic factors that could affect your purchase today or in the future, as well as neighborhoods and school districts in the Pierre area.
I can also help you begin the loan process.
There are some very good mortgage professionals in Pierre, and I partner with a lot of them, so you'll be in great hands.
They can assist you in deciding which type of loan is best for you and help you get approved.
Step 3 – Begin house hunting
After our initial meeting, I'll start looking for available homes on the market that are a great fit for you.
I'll get a sneak peek of many of the homes and reject the duds, and then we'll schedule appointments to tour the houses whenever it's convenient for you.
As we view houses, I'll show you the positive features and negative ones. I'll also ask you to point out what things you like and don't like.
Generally, buyers update their wish list as we view homes and some items become far more essential than others.
If such is the case, I'll go back through the listings again and narrow it down to the home you've been wishing for.
Step 4 – Get a grasp of the market
My understanding of the Pierre market is a necessary advantage in your house search. I am acquainted with all the schools and neighborhoods, and I'll alert you to what areas are "hot" and demand prompt action and others that are "cool" and allow for careful analysis.
As we view houses, 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 on guard and make sure you ask your agent lots of questions, as any real estate agent will claim to comprehend the home market.
If it seems like they don't know everything, contact me at (605) 494-4663 or e-mail me at soldbyrachel@mac.com, and I'll be happy to answer any questions you may have. My understanding of the market will keep you a step ahead through the entire process.
Step 5 – Find your dream home
I'm certain we'll find the house of your dreams in the Pierre area, and when that happens, I'll meticulously develop your real estate purchase offer. The offer will be written to suit your needs. Whenever necessary, I never forget to make contracts contingent upon items like acquiring financing and the results of the home inspection.
When we turn in your offer, you'll want to submit "earnest money." This is a cash deposit submitted to a home seller to secure the offer to purchase the property. The amount is most often put towards the closing costs. If your offer is accepted by the seller, we should close on the home within 30 to 60 days after. This allows sufficient time for your mortgage financing.
Step 6 – Negotiate the deal
Unfortunately most contracts don't close on the beginning offer. It's pretty common to receive a counter offer. But don't let it intimidate you. We'll talk over whether or not to accept the counter offer, present our own counter offer, or decline the seller's offer and move on.
The state of the market will play a role in how aggressively we negotiate the deal.
We'll also work within your financing budget. And at the end of the day, we'll formulate a deal that's best for you.
Step 7 – Get your loan
Upon finalizing the deal, you'll begin working with your lender to close the loan.
If you're already pre-approved, this shouldn't take much time at all. But you'll need to stay in close contact with your lender.
And I'll deal with all the property information your mortgage lender needs to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) outlining your closing costs from your mortgage lender within three days of getting your loan application.
The estimate rests on the loan amount. RESPA requirements require that it has to involve all closing costs and be within a tight range of accuracy, and I'll analyze the estimate and let you know if it all looks good.
Then it's time to close on your house. This will probably take place at a title company or escrow office and should be a smooth and calm affair.
Step 9 – Move in
Congratulations! It's time to move into your new home. Enjoy it. And if you need anything, simply call me at (605) 494-4663 or send me an e-mail.
