Purchasing a home is stressful for many people. However, with a little up-front planning, it's not very complicated. I like to provide buyers with an overview of the entire deal so they understand exactly what to expect. Here are my nine steps to buying a home.
Step 1 – Prepare to purchase
There are plenty of things you'll want to take into account before beginning your home search. When you begin your search, you'll probably want to assemble a check list of features you want, get a plan of what neighborhoods and school districts you'd like to live in, and begin working on your budget. Keeping your mortgage payment less than 1/3 of your net monthly income is a good guideline to go by.
Step 2 – Communicate with a real estate agent in Long Beach
That's where I come in. I'd like to set up a time to meet with you and communicate with you regarding why you want to buy a home and get an idea of your upcoming plans. We'll discuss the mortgage and housing industries, other economic factors that may potentially affect your buying decision today or in the future, as well as neighborhoods and school districts in the Long Beach area.
I can also help you facilitate the loan process. Mallin Properties works with some of Long Beach's finest mortgage professionals, so you'll be in great hands. They will help you decide which type of loan is best for you, as well as help you get qualified.
Step 3 – Start looking for a house
After our initial meeting, I'll start searching for available houses on the market that best suit you. I'll get a sneak peek of many of the houses and exclude the bad ones, and then we'll book appointments to view the houses when it's most convenient for you.
As we view the houses, I'll identify positive features, as well as bad ones. I'll also ask you to point out what things you like and dislike. It's pretty common for buyers to change their wish list as we tour houses and some things become far more crucial than others. If such is the case, I'll look through all the listings once more and narrow it down to the home you've been waiting for.
Step 4 – Get a feel for the market
An agent's understanding of the Long Beach housing market is an essential agent in your home search. And I can assure you I'm acquainted with all the neighborhoods and school districts, and I'll alert you to what areas are "hot" and require immediate action and the ones that are "cold" and allow for careful examination.
When we view houses, I'll make sure to communicate if the list price has room for negotiation or if I believe the home is "priced to sell." When working with an agent, be on guard and be sure to ask plenty of questions. Any real estate agent will claim to truly understand the home market. If it appears they don't know everything, call me at 562 434 4617 or e-mail me at cheryldill@charter.net, and I'll be happy 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 home of your dreams
I'm sure we'll find your dream home in the Long Beach area, and when that happens, I'll thoroughly create your real estate purchase offer. The offer will be tailored with your needs in mind. Whenever necessary, I never forget to make contracts contingent upon items like acquiring financing and the results of the home inspection.
Upon sending in your offer, you'll need to submit "earnest money." This is a cash deposit given to a seller to secure an offer to purchase the property and is most often put towards the cost of closing. If the seller accepts your offer, we should close on the home within 30 to 60 days afterward. This allows ample time for your mortgage financing.
Step 6 – Negotiate the deal
Most deals don't close on the first offer, and it's really common to receive a counter offer. Don't let it discourage you. We'll consider whether or not to agree to the counter offer, submit our own counter offer, or decline the seller's offer and move on.
The state of the market will play a large role in how aggressively we negotiate the contract. In addition, we'll work within your financing limits. And when it's all said and done, we'll formulate a contract that works well for you.
Step 7 – Secure financing
After we sign the final deal, you'll begin working with your lender to close the loan. If you're pre-qualified, this shouldn't be a long process at all. But you'll need to keep in close contact with your lender. And I'll deal with all the property information your lender will need to close the loan.
Step 8 – Close the deal
Your mortgage lender will send you a Good Faith Estimate (GFE) of your closing costs within three days of getting your application. You'll get a Good Faith Estimate (GFE) detailing closing costs from your lender within three days of accepting your loan application. The estimate is formed from the loan amount, and RESPA requirements dictate that it has to contain all closing costs and fall within a precise range of accuracy. I'll study the estimate and let you know if everything looks permissible.
Then it's time to close on your home. This should take place at a title company or escrow office and is often a smooth and easygoing event.
Step 9 – Move in
You made it! It's time to move into your new house. Enjoy it. And if you have any questions, be sure to contact me at 562 434 4617 or send me an e-mail.
