Buying a home is an intimidating event for most people. However, with some planning ahead of time, it isn't all that confusing. I like to supply buyers with a road map of the entire deal so they understand exactly what they can expect. Here are my nine steps to purchasing a home.
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Should you have any questions about any of this information or if you're ready to get started, simply contact me here or e-mail me at charlotte@thehouseangel.com. |
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Step 1 – Prepare to purchase
There are several things you should consider before beginning your home search. When you start your search, you'll want to create an index of items you want, get a feel for what neighborhoods you'd like to live in, and start working on your budget. Keeping your mortgage payment around 30 percent of your monthly income is a good rule of thumb to go by.
Step 2 – Contact a real estate agent
This is where I can help. We'll arrange 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 the mortgage and housing industries, other economic factors that could potentially affect your buying decision today or in the future, as well as neighborhoods and schools in the Albuquerque area.
I'll also help you start the loan process. I partner with some of the best mortgage professionals in Albuquerque, so you can rest assured that you're in great hands. They can assist you with choosing which kind of loan is best for you and help you get approved.
Step 3 – Start your home search
After we meet, I'll start finding available homes on the market that are good for you. I'll preview most of the houses and eliminate the bad ones, and then we'll schedule appointments to tour the homes whenever it's convenient for you.
When we view homes, I'll point out good features and bad ones. I'll also ask you to tell us about things you like and dislike. It's common for buyers to change their must-have list as we tour houses and some features become more essential than others. If that's the situation, I'll search all the listings one more time and trim it down to the house you've been dreaming about.
Step 4 – Get a grasp of the housing market
Your agent's awareness of the Albuquerque home market is an essential aspect in your house search. And I can assure you I'm informed of all the neighborhoods and school districts, and I will let you know what neighborhoods are "hot" and warrant prompt action and some that are "cool" and allow for careful analysis.
As we view homes, I'll let you know if the asking price has room for negotiation or if I believe the home is "priced to sell." When working with an agent, be careful and be sure to ask plenty of questions, as every real estate agent in Albuquerque will tell you they truly know the housing market. If it seems like they don't know everything, call me at 505-350-0099 or e-mail me at charlotte@thehouseangel.com, and I'll be happy to answer any questions you have. My knowledge of the market will keep you a step ahead through the entire process.
Step 5 – Find the home you've been waiting for
I'm sure we'll find the house of your dreams in the Albuquerque area. When we do, I'll precisely develop your purchase offer. The offer will be tailored keeping your needs in mind, including several contingencies, such as getting financing, completing the home inspection, and a clean title.
When we present your purchase offer, you'll need to submit "earnest money." This is a cash deposit submitted to the home seller to secure an offer to purchase the property. The amount is usually applied to the cost of closing. If the offer is accepted, we should close on the property about 30 to 60 days afterward. This allows plenty of time for your mortgage financing.
Step 6 – Negotiate
Unfortunately most contracts don't close on the beginning offer, and it's extremely common to receive a counter offer. But don't let it discourage you. We'll talk about whether or not to take the counter offer, submit our own counter offer, or refuse the seller's offer and go on.
How aggressively we negotiate the deal depends on the state of the market. We'll also work within your financing constraints. And at the end of the day, we'll assemble a contract that is best for you.
Step 7 – Get financing
Upon completion of the deal, you'll begin working with your mortgage lender to close the loan. If you're pre-qualified, it shouldn't take long at all, but you'll want to stay in close contact with your lender. And I'll care for all the property information your lender needs to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) outlining closing costs from your mortgage lender within three days of receiving your application. This estimate rests on the loan amount, and RESPA requirements mandate that it has to include all closing costs and fall within a narrow range of accuracy. I'll examine the estimate and let you know if everything looks all right.
Then it's time to close on your house. This will most often occur at a title company or escrow office and should be a smooth and calm event.
Step 9 – Move in
Success! Now you can move into your new home. Enjoy it. And if you need anything or have any questions, just contact me at 505-350-0099 or send me an e-mail.
