This Buyer’s Guide is meant to give you an idea of how the buying process works, and how we will work with you each step of the way. At the end of the day, our job is to make sure things go seamlessly and you find the best possible home for your budget.
buyer’S GUIDE STEPS
defining goals and setting a budget
getting pre-approved
finding a home
making an offer
securing financing and Closing
STEP 1
defining goals and setting a budget
Buying a home is a big step, so it’s important for you to prepare as much as possible in advance. This means clearly determining why you’re buying and what kind of home you’re looking for. And because buying and financing a home are so closely related, it also means examining your current financial situation and projecting how much you think you can afford. I can also work with you to help determine what you should factor into your budget. But until then, you can use my mortgage calculator for a rough idea on home costs and what you can afford.
STEP 2
getting pre-approved
So, you know your budget and what you can actually afford, but you still need to determine an amount that a lender will let you borrow. To get pre-qualified, a lender will examine your current financial situation and credit history and provide you with a document that details how much you can borrow. We highly recommend that you get pre-qualified before you start viewing homes with the serious intention of buying. Sellers will take you more seriously, and be open to working with you when you have solid access to a mortgage.
STEP 3
finding a home
Now you’re ready to start looking! It’s best to start by determining your ideal neighborhoods, and making a list of must-haves vs. nice-to-haves. If you’re having a tough time narrowing down or finding neighborhoods that fit your need, we can give recommendations based on your wants. At the very end of the day, the key to the home search process is knowing what you’re looking for.
Below we have listed my top home shopping tips to help put you in the right frame of mind as you begin your search:
Develop your home/neighborhood wish list. Prioritize these items from most important to least.
Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account nearby schools, recreational facilities, area expansion plans, and safety.
Know that there’s no “right” time to buy. If you find the perfect home now, don’t risk losing it because you’re trying to guess where the housing market and interest rates are going, or because you think there might be a better home out there.
Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of the people who will actually be living in the home.
Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go. Also, accept that a little buyer’s remorse is inevitable and will most likely pass.
Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself that you forget about important issues such as noise level, access to amenities, and other aspects that also have a big impact on your quality of life.
Plan ahead. Don’t wait until you’ve found a home to get approved for a mortgage, investigate insurance, or consider a moving schedule. Being prepared will make your bid more attractive to sellers.
Choose a home first because you love it; then think about appreciation. A home is still considered a great investment, but its most important role is as a comfortable, safe place to live.
Be ready to move. This is especially true in markets with a low inventory of homes for sale. It’s very common for home buyers to miss out on the first home they wish to purchase because they don’t act quickly enough. By the time they’ve made their decision, they may find that someone else has already purchased the house.
Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or refusing to budge may cost you the home you love—especially in a seller’s market.
Factor maintenance and repair costs into your buying budget. Even brand-new homes will require some work. Don’t leave yourself short and let your home deteriorate.
Think ahead. It’s easy to get wrapped up in your present needs, but you should also think about reselling the home before you buy. The average first-time buyer stays in a home for around 10 years.
STEP 4
making an offer
Now that you’ve found the home you’d like to buy, it’s time to make an offer. Some sellers will have an offer-review date, while others will be open to any offers that come in. When you’re ready, we will help you determine how much to offer and which contingencies to include. Once we submit your offer, the seller will review it with their agent and accept, decline, or submit a counteroffer. Depending on market supply and demand and offer competition, counter-offers are common and should even be expected. If you end up in a counter-offer situation, we will help you negotiate the best deal possible.
STEP 5
securing financing and Closing
Once you have a pending agreement, it’s time to go back to your chosen lender to finalize your mortgage details so you can close the deal. This means finalizing your down payment, interest rate, regular payment schedule and any other financial conditions associated with the closing. If you’ve already been qualified with a lender for a certain loan and home purchase, this phase of buying your new home should be a relatively straightforward matter that centers around finalizing the loan details and signing the mortgage papers. In general, the closing process usually takes 30 to 45 days.