For most people, purchasing a home is a stressful event. But with a bit of planning ahead of time, it's not all that complex. So you understand exactly what to expect, I like to supply my buyers with a road map of the entire deal. Below are my nine steps to buying a home.
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When you're ready to get started, you can contact me here or send e-mail to kenlavertu@earthlink.net. I'm happy to address questions you have about this information. |
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Step 1 – Get ready to purchase
Before you commence your home search, there are plenty of things you'll want to consider. When you start your search, you'll want to assemble a list of must-have features, get an idea of what neighborhoods you'd like to live in, and begin working on your budget. Keeping your mortgage payment around a third of your monthly income is a good rule of thumb to follow.
Step 2 – Contact a real estate agent
This is where I can help. We'll set up a time to get together so we can talk about your real estate needs and get an idea of your future plans. We'll talk about neighborhoods, school districts in the Loveland area, the mortgage industry, and any other economic factors that may potentially affect your buying decision today or in the future.
In addition, I'll help you start the loan process. Park Place Real Estate partners with some of Loveland's best mortgage professionals, so you're in great hands. They'll assist you with figuring out which kind of loan is best for you and help you get qualified.
Step 3 – Begin house hunting
Following our first meeting, I'll start finding homes on the market that are a good fit for you. I'll preview most of the houses and ignore the duds, and then we'll schedule appointments to tour the homes when it's most convenient for you.
As we tour the homes, I'll identify good features and negative ones. And I'll ask you what things you like and don't like. It's common for buyers to change their wish list as we view homes and some things become more essential than others. If that's the case, I'll look through the listings again and narrow it down to the house you've been wishing for.
Step 4 – Understand the housing market
Your agent's understanding of the Loveland market is an essential element in your home search. And I can assure you I'm informed of all the school districts and neighborhoods, and I will alert you to what neighborhoods are "hot" and require immediate action and others that are "cool" and allow for thoughtful consideration.
When we tour houses, I'll be sure to tell you if the seller's list price has room for bargaining or if I believe the home is "priced to sell." Be careful and be sure to ask lots of questions, as any REALTOR® will claim to truly understand the market. If things don't add up, just call me at 970-663-7070 or e-mail me at kenlavertu@earthlink.net, and I'd be more than happy to answer any questions you have. My understanding of the market will keep you a step above the rest throughout the entire deal.
Step 5 – Find your dream home
I'm sure we'll find your dream home in Loveland. When that happens, I'll thoroughly develop your home purchase offer. The offer will be tailored with your needs in mind, including many contingencies. A few examples are getting financing, finishing the inspection, and a clean title.
When we present your purchase offer, most likely you'll want to present "earnest money." This is a cash deposit made to a home seller to secure the offer to buy the property. The amount is typically put towards the closing costs. If your offer is accepted by the seller, we should close on the property about 30 to 60 days afterward. This allows ample time for your mortgage financing.
Step 6 – Negotiate
A lot of deals don't close on the initial offer – it's really common to receive a counter offer. Don't let this alarm you. We'll figure out whether or not to agree to the counter offer, submit our own counter offer, or refuse the seller's offer and go on.
The state of the market determines how aggressively we negotiate the deal. We'll also work within your budget. And at the end of the day, we'll put together a deal that's best for you.
Step 7 – Obtain a loan
After the deal is finalized, you'll start working with your mortgage lender to close the loan. If you're already pre-approved, it won't take long at all. However, you need to keep in close contact with your lender. And I'll take care of all the property information your lender will need to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) outlining your closing costs from your lender within three days of getting your loan application. The estimate is formed from the loan amount, and RESPA requirements order that it has to involve all closing costs and be within a close range of accuracy. I'll analyze the estimate and let you know if everything looks permissible.
Then we'll close on your house. This will probably happen at a title company or escrow office and will most often be a smooth and relaxing affair.
Step 9 – Move in
Success! Now you can move into your new house. Enjoy it. And if you need anything, simply contact me at 970-663-7070 or send me an e-mail.
