For most people, purchasing a home is a stressful event. However, with some planning ahead of time, it's not all that complex. I like to furnish buyers with an overview of the whole deal so they know exactly what they can expect. Here are my nine steps to buying a home.
Step 1 – Prepare to purchase a home
There are several things you need to take into account before starting your home search. You'll most likely want to put together an index of features you want to have, get an idea of what neighborhoods you want to live in, and start planning around your budget. A good rule to follow is that your mortgage payment should be close to a third of your net monthly income.
Step 2 – Communicate with a real estate agent in Germantown
This is where I can help. I'd like to set up a time to get together with you and talk about why you want to buy a home and get an idea of your plans for the future. We'll discuss everything from neighborhoods, school districts in the Germantown area, the mortgage and housing industries, to any other economic factors that might affect your purchase today or in the future.
I can also help you begin the loan process. There are some excellent mortgage professionals in Germantown, and I work with a lot of them, so you'll be in great hands. They'll help you figure out which kind of loan is best for you, as well as help you get approved.
Step 3 – Start house hunting
After our initial meeting, I'll begin looking for homes on the market that are a good fit for you. I'll get a sneak peek of many of the houses and throw out the bad ones, and then we'll schedule appointments to tour the homes at a time that's convenient for you.
When we tour the houses, I'll point out good features and negative ones. I'll even ask you about things you like and don't like. Generally, buyers change their must-have list as we view houses and some things become far more crucial than others. If that's the situation, I'll search the listings once again and trim it down to the home of your dreams.
Step 4 – Understand the housing market
My understanding of the Germantown market is a necessary asset in your search. I am familiar with all the neighborhoods and school districts, and I'll let you know which neighborhoods are "hot" and warrant immediate action and others that are "cool" and allow for thoughtful examination.
As we tour homes, I'll be sure to tell you when the asking price has room for bargaining and when I trust the home is "priced to sell." When working with an agent, be mindful and be sure to ask lots of questions. Any real estate agent in Germantown will tell you they truly know the home market. If it appears they don't know everything, call me at (901) 758-1200 or e-mail me at marilyn@myhomesonline.com, and I'll be happy to answer any questions you have. My market knowledge will help you stay a step ahead through the entire process.
Step 5 – Find the home you've been looking for
I know we'll find the home of your dreams in Germantown. When that happens, I'll precisely develop your real estate purchase offer. The offer will be tailored keeping your needs in mind, including a lot of contingencies, such as getting financing, carrying out the inspection, and a clean title.
Upon submitting your offer, you'll want to present "earnest money." This is a cash deposit given to a seller to secure the offer to buy the property. The amount is typically put towards the cost of closing. If the offer is accepted by the seller, we should close on the property within 30 to 60 days afterward. This allows plenty of time for your mortgage financing.
Step 6 – Negotiate the deal
Unfortunately most contracts don't close on the initial offer, and it's widely common to receive a counter offer. But don't let this alarm you. We'll figure out whether or not to take the counter offer, submit our own counter offer, or refuse the seller's offer and go on.
The state of the market determines 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 – Get your loan
Upon completing the deal, you'll begin working with your mortgage lender to close the loan. This shouldn't take much time at all if you're pre-approved, but you need to stay in close contact with your lender. And I'll take care of all the property information your lender will need to close the loan.
Step 8 – Close the deal
Your lender will provide you with a Good Faith Estimate (GFE) detailing your closing costs within three days of receiving your loan application. You'll get a Good Faith Estimate (GFE) outlining closing costs from your mortgage lender within three days of accepting your loan application. This estimate is formed from the loan amount. RESPA requirements dictate that it has to contain all closing costs and fall within a precise range of accuracy, and I'll study the estimate and let you know if everything looks permissible.
Then we'll close on your home. This should occur at a title company or escrow office and will probably be a smooth and peaceful event.
Step 9 – Move in
Success! Now you can move into your new home. Enjoy it. And if you need anything, simply call me at (901) 758-1200 or send me an e-mail.
