With a little planning ahead of time, buying a home isn't that complicated, but the event can be stressful for many people. I like to furnish buyers with an outline of the entire deal so they understand exactly what they can expect. Below are my nine steps to buying a home.
Step 1 – Prepare to buy
Before you start looking for a home, there are many things you'll want to consider. When you start your search, you'll want to make a list of features you need, get a feeling for what neighborhoods and school districts you'd like to live in, and begin working on your budget. Keeping your mortgage payment less than or close to 30 percent of your monthly income is a good guideline to follow.
Step 2 – Communicate with a real estate agent in Colorado
This is where I can help. I'd be more than happy to schedule a time to meet with you and speak with you regarding your real estate needs and get an idea of your plans for the future. We'll discuss everything from neighborhoods, school districts in the Colorado area, the mortgage and housing industries, to any other economic factors that may 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 Colorado, 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 kind of loan is best for you, as well as help you get qualified.
Step 3 – Begin house-hunting
Following our first meeting, I'll start searching for available houses on the market that meet your needs. I'll get a sneak peek of many of the houses and eliminate the duds, and then we'll book appointments to tour the houses when it's convenient for you.
As we view homes, I'll call attention to positive features, as well as bad ones. I'll also ask you what things you like and don't like. It's common for buyers to amend their must-have list as we view houses and some features become far more essential than others. If that happens, I'll go back through the listings again and narrow it down to the house you've been waiting for.
Step 4 – Get a grasp of the housing market
An agent's understanding of the Colorado home market is an imperative aspect in your house search. And I assure you I'm mindful of all the neighborhoods and schools, and I will alert you to what neighborhoods are "hot" and warrant prompt action and some that are "cool" and allow for careful consideration.
As we tour homes, I'll let you know when the seller's list price has room for negotiation and also when I believe the house is "priced to sell." Any REALTOR® in Colorado will claim to know the market, but take note, and be sure to ask a lot of questions. If things don't add up, call me at 303-843-1545 or e-mail me at email@example.com, and I'd be happy to answer your questions. My understanding of the market will help you stay a step ahead throughout the entire deal.
Step 5 – Find the home of your dreams
I'm certain we'll find your dream home in the Colorado area. When that happens, I'll precisely develop your home purchase offer. The offer will be tailored to suit your needs, including a lot of contingencies. A few examples are acquiring financing, carrying out the home inspection, and a clean title.
When we submit your offer, you'll need to present "earnest money." This is a cash deposit given to the seller to secure the offer to buy the property. The amount is most often put towards the closing costs. If your offer is accepted by the seller, we should close within 30 to 60 days after. This allows enough time for your mortgage financing.
Step 6 – Negotiate
Unfortunately most deals aren't closed on the beginning offer, and it's really common to receive a counter offer. Don't let it discourage you. We'll consider whether or not to accept the counter offer, present our own counter offer, or decline the seller's offer and go on.
The state of the market will play a vital role in how aggressively we negotiate the deal. In addition, we'll work within your budget. And at the end of the day, we'll create a deal that works well for you.
Step 7 – Get a loan
Once the deal is signed, you'll start working with your lender to close the loan. It won't take very long at all if you've been pre-qualified, but you need to stay in close contact with your mortgage lender. And I'll handle all the property information your mortgage lender will need to close the loan.
Step 8 – Close the deal
Your lender will give you a Good Faith Estimate (GFE) outlining closing costs within three days of accepting your loan application. You'll get a Good Faith Estimate (GFE) outlining your closing costs from your mortgage lender within three days of accepting your loan application. This estimate rests on the loan amount. RESPA requirements require that it has to involve all closing costs and be within a narrow range of accuracy, and I'll review the estimate and let you know if it all looks okay.
Then we'll close on your house. This should occur at a title company or escrow office and will most likely be a smooth and peaceful affair.
Step 9 – Move in
You made it! It's time to move into your new house. Enjoy it. And if you need anything, simply contact me at 303-843-1545 or send me an e-mail.