Purchasing a home can be stressful for a lot of people, but with some up-front planning, it's not all that complicated.
I like to give buyers an overview of the whole deal so they'll understand exactly what they can expect.
Below are my nine steps to buying a home.
Step 1 – Prepare to purchase a home
There are a lot of things you need to consider before commencing your home search.
When you begin your search, you'll want to put together a check list of items you want to have, get an idea of what neighborhoods you want to live in, and begin working on your budget.
Keeping your mortgage payment around 30 percent of your monthly income is a good rule of thumb to follow.
Step 2 – Get in touch with a real estate agent
That's where I come in.
We can schedule a time to get together so we can talk about why you want to buy a home and get an idea of your plans for the future.
We'll talk about neighborhoods, school districts in the Phoenix area, the mortgage industry, and any other economic factors that might affect your purchase today or in the future.
I'll also help you facilitate the loan process.
I work with some of the best mortgage professionals in Phoenix, so you're in great hands.
They will assist you with deciding which type of loan is best for you and help you get approved.
Step 3 – Begin your home search
Following our initial meeting, I'll start looking for houses on the market that are great for you.
I'll research most of the homes and throw out the duds, and then we'll schedule appointments to tour the homes when it's most convenient for you.
As we tour the houses, I'll point out positive features and negative ones. And I'll ask you about things you like and don't like.
Generally, buyers revise their wish list as we view homes and some things become far more essential than others.
If that happens, I'll go back through all the listings once again and trim it down to the home of your dreams.
Step 4 – Understand the market
My awareness of the Phoenix housing market is an indispensable benefit in your house search. I am acquainted with all the schools and neighborhoods, and I can let you know some areas are "hot" and demand immediate action and others that are "cool" and allow for more analysis.
When we view homes, I'll be sure to tell you if the asking price has room for negotiation or if I believe the house is "priced to sell."
When working with an agent, trust your instincts and make sure you ask a lot of questions. Every real estate agent will convince you they understand the housing market.
If it appears they don't know everything, contact me at 602-316-0115 or e-mail me at phyllis@phyllisjcanderson.com, and I'll be more than happy to answer any questions you might have. My market knowledge will keep you a step ahead through the entire process.
Step 5 – Find the home you've been waiting for
I'm confident we'll find your dream home in Phoenix. When we do, I'll thoroughly develop your home purchase offer. The offer will be tailored exactly to your needs, including a lot of contingencies. A few examples are getting financing, finishing the inspection, and a clear title.
When turning in your offer, you'll want to present "earnest money." This is a cash deposit made to the seller to secure an offer to purchase the property. The amount is typically put towards the closing costs. If the seller accepts the offer, we should close on the home within 30 to 60 days after. This allows necessary time for your mortgage financing.
Step 6 – Negotiate
Most deals aren't closed on the initial offer. It's really common to receive a counter offer. But don't let this alarm you. We'll talk about whether or not to take the counter offer, present our own counter offer, or reject the seller's offer and move on.
Market conditions will play a large role in how aggressively we negotiate the deal.
In addition, we'll work within your financing constraints. And when it's all said and done, we'll assemble a deal that is best for you.
Step 7 – Get your loan
Upon finishing the deal, you'll start working with your mortgage lender to close the loan.
If you've been pre-qualified, it won't take very long at all. But you should to keep in close contact with your mortgage lender.
And I'll sort out all the property information your mortgage lender will need to close the loan.
Step 8 – Close the deal
Your lender will provide you with a Good Faith Estimate (GFE) detailing closing costs within three days of taking your application. You'll get a Good Faith Estimate (GFE) detailing your closing costs from your mortgage lender within three days of accepting your application.
This estimate is formed from the loan amount, and RESPA requirements mandate that it has to involve all closing costs and be within a tight range of accuracy. I'll analyze the estimate and let you know if everything looks all right.
Then it's time to close on your house. This will most often take place at a title company or escrow office and is often a smooth and stress-free affair.
Step 9 – Move in
Success! Now you can move into your new house. Enjoy it. And if you need anything, make sure you call me at 602-316-0115 or send me an e-mail.
