Buying a home is intimidating for a lot of people, but with a bit of planning ahead of time, it isn't that complex. So you know exactly what to expect, I like to furnish my buyers with an outline of the entire deal. Here are my nine steps to purchasing a home.
Step 1 – Prepare to buy a home
There are many things you should take into account before you start searching for a home. When you start your search, you'll want to create a checklist of must-haves, get an idea of what school districts you want to live in, and begin planning around your budget. Keeping your mortgage payment around 1/3 of your net monthly income is a good rule of thumb to adhere to.
Step 2 – Communicate with a real estate agent
That's where I can help. I'd be happy to book a time to get together with you and speak with you regarding why you want to buy a home and get an idea of your upcoming plans. We'll discuss neighborhoods, schools in the AUSTIN area, the mortgage industry, and any additional economic factors that may potentially affect your buying decision today or in the future.
I can also help you begin the loan process. There are some very good mortgage professionals in AUSTIN, and I partner with a lot of them, so you'll be in great hands. They'll assist you in choosing which type of loan is best for you and help you get approved.
Step 3 – Start house hunting
After our initial meeting, I'll start finding houses on the market that are great for you. I'll research most of the houses and ignore the bad ones, and then we'll schedule appointments to view the houses at a time that's convenient for you.
When we view the homes, I'll identify positive features and bad ones. I'll even ask you what things you like and don't like. For the most part, buyers change their must-have list as we tour houses and some items become more necessary than others. If such is the case, I'll search all the listings once more and trim it down to the house you've been waiting for.
Step 4 – Know the market
My awareness of the AUSTIN home market is an indispensable advantage in your home search. I am acquainted with all the neighborhoods and schools, and I'll communicate what areas are "hot" and warrant immediate action and the ones that are "cool" and allow for thoughtful consideration.
As we tour homes, I'll make sure to communicate if the seller's list price has room for negotiation or if I believe the home is "priced to sell." Be careful and be sure to ask lots of questions, as every REALTOR® will tell you they comprehend the housing market. If it appears they don't know everything, contact me at 512-258-0909 or e-mail me at Info@hud512.com, and I'd be more than happy to answer any questions you have. My market knowledge will keep you a step above the rest throughout the entire deal.
Step 5 – Find the house you've been looking for
I'm certain we'll find the house of your dreams in the AUSTIN area. When that happens, I'll thoroughly develop your home purchase offer. The offer will be tailored exactly to your needs, including some contingencies, such as obtaining financing, finishing the home inspection, and a clear title.
When presenting your purchase offer, most likely 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 it's typically put towards the closing costs. If the offer is accepted, we should close on the home within 30 to 60 days afterward. This allows sufficient time for your mortgage financing.
Step 6 – Negotiate
Unfortunately most contracts aren't closed on the beginning offer – it's really common to receive a counter offer. But don't let it intimidate you. We'll discuss whether or not to agree to the counter offer, propose our own counter offer, or refuse the seller's offer and move on.
Market conditions determine how aggressively we negotiate the deal. We'll also work within your budget. And when it's all said and done, we'll compose a contract that is best for you.
Step 7 – Obtain a loan
Once we sign the final deal, you'll begin working with your lender to close the loan. It won't take long at all if you've been pre-approved, but you need to keep in close contact with your mortgage lender. And I'll take care of all the property information your lender needs to close the loan.
Step 8 – Close the deal
Your mortgage lender will furnish you with a Good Faith Estimate (GFE) outlining your closing costs within three days of getting 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 loan application. This estimate depends on the loan amount. RESPA requirements mandate that it has to involve all closing costs and fall within a tight range of accuracy, and I'll review the estimate and let you know if everything looks all right.
Then it's time to close on your house. This will likely happen at a title company or escrow office and will likely be a smooth and stress-free occurrence.
Step 9 – Move in
You made it! It's time to move into your new home. Enjoy it. And if you need anything, be sure to contact me at 512-258-0909 or send me an e-mail.
