With some up-front planning, purchasing a home isn't very difficult, but the event intimidates a lot of people.
So you'll understand exactly what to expect, I like to supply my buyers with an outline of the whole deal.
Below are my nine steps to buying a home.
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Should you have questions about any of this information or if you're prepared to get started, you can contact me here or e-mail me at David@Pitts.com.
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Step 1 – Get ready to buy
There are plenty of things you'll want to take into account before starting your home search.
You'll probably want to put together a check list of items you want to have, get a feeling for what neighborhoods and school districts you want to live in, and begin planning around your budget.
Ensuring your mortgage payment is around 30 percent of your monthly income is a good principle to go by.
Step 2 – Get in touch with a real estate agent
This is where WHY USA Eastern Iowa Realty can help.
We can book a time to get together so we can talk about why you want to buy a home and get an idea of your upcoming plans.
We'll discuss neighborhoods, schools in the area, the mortgage and housing industries, and any other economic factors that might affect your purchase today or in the future.
I can also help you get started on your loan.
There are some very good mortgage professionals in , and I partner with a lot of them, so you'll be in great hands.
They can help you choose which kind of loan is best for you, as well as help you get qualified.
Step 3 – Start house hunting
After our first meeting, I'll begin looking for homes on the market that are great for you.
I'll research most of the houses and reject the duds, and then we'll book appointments to view the houses when it's convenient for you.
As we view the houses, I'll show you the good features and negative ones. And I'll ask you to tell us about things you like and dislike.
Most often, buyers update their must-have list as we view houses and some things become far more necessary than others.
If such is the case, I'll go back through the listings again and narrow it down to the house you've been waiting for.
Step 4 – Understand the market
An agent's understanding of the housing market is a fundamental component in your house search. And I can assure you I'm conscious of all the schools and neighborhoods, and I can alert you to certain neighborhoods are "hot" and warrant immediate action and others that are "cool" and allow for thoughtful analysis.
As we view houses, I'll let you know when the list price has room for negotiation and also when I believe the home is "priced to sell."
When working with an agent, be careful and be sure to ask plenty of questions, as any REALTOR® in will tell you they truly know the market.
If it seems like they don't know everything, just call me at (319) 360-7139 or e-mail me at David@Pitts.com, and I'll be glad to answer any questions you might have. My market expertise will help you stay a step ahead throughout the entire deal.
Step 5 – Find the house of your dreams
I know we'll find your dream home in . When we do, I'll carefully create your real estate purchase offer. The offer will be tailored keeping your needs in mind, including several contingencies. A few examples are obtaining financing, completing the home inspection, and a clean title.
Upon turning in your offer, you'll want to submit "earnest money." This is a cash deposit submitted to the seller to secure the offer to buy the property. The amount is usually applied to the cost of closing. If your offer is accepted by the seller, we should close on the home about 30 to 60 days afterward. This allows enough time for your mortgage financing.
Step 6 – Negotiate
Most deals don't close on the first offer, and it's widely common to receive a counter offer. Don't let it alarm you. We'll consider whether or not to consent to the counter offer, submit our own counter offer, or reject the seller's offer and go on.
Market conditions will play a role in how aggressively we negotiate the contract.
We'll also work within your budget. And when it's all said and done, we'll create a deal that is best for you.
Step 7 – Secure a loan
Upon finalizing the deal, you'll begin working with your mortgage lender to close the loan.
If you're already pre-qualified, this won't be a long process at all. But you should to stay in close contact with your mortgage lender.
And I'll sort out 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) detailing closing costs within three days of receiving your loan application. You'll get a Good Faith Estimate (GFE) of 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 order that it has to contain all closing costs and fall within a tight range of accuracy. I'll analyze the estimate and let you know if everything looks good.
Then we'll close on your house. This will most likely take place at a title company or escrow office and will most likely be a smooth and pleasant event.
Step 9 – Move in
Congratulations! It's time to move into your new house. Enjoy it. And if you need anything, be sure to contact me at (319) 360-7139 or send me an e-mail.
