What a big undertaking purchasing your first house is! It can also be a bit frightening.
If you’re like most people, you’ll likely need some advice along the way — and you’ll undoubtedly need a real estate agent looking out for your greatest interests.
With a little planning ahead of time, purchasing a home isn’t all that complex, but the event intimidates a lot of people. So they understand exactly what they can expect, I like to provide buyers with an overview of the entire deal. Below are my nine steps to buying a home.
If you have questions regarding this information or if you’re prepared to get started, simply call me at 512-865-0433, e-mail me or use the form below.
Step 1 – Get ready to purchase a home
There are many things you need to consider before you search for a home. You’ll probably want to create a check list of items you need to have, get an idea of what neighborhoods and school districts you want to live in, and begin planning around your budget. A good guideline to go by is that your mortgage payment should be less than 30 percent of your net monthly income.
Step 2 – Contact a real estate agent
This is where I come in. I’d be more than happy to schedule a time to get together and communicate with you regarding your real estate needs and get an idea of your upcoming plans. We’ll talk about everything from neighborhoods, schools in the Austin area, the mortgage and housing industries, to any other economic factors that may affect your purchase today or in the future.
I’ll also help you get started on your loan. There are some great mortgage professionals in Austin, and I work with a lot of them, so you can rest assured that you’re in great hands. They’ll assist you in determining which type of loan is best for you and help you get approved.
Step 3 – Start house hunting
After our first meeting, I’ll begin searching for available houses on the market that suit your needs. I’ll preview most of the houses and throw out the bad ones, and then we’ll book appointments to view the homes whenever it’s convenient for you.
As we view homes, I’ll show you the positive features and negative ones. And I’ll ask you about things you like and dislike. Most often, buyers change their must-have list as we view homes and some things become far more important than others. If that’s the situation, I’ll search the listings once more and narrow it down to the home you’ve been dreaming about.
Step 4 – Comprehend the market
My understanding of the Austin market is a necessary component in your home search. I’m acquainted with all the neighborhoods and school districts, and I will communicate certain areas are “hot” and demand prompt action and the ones that are “cold” and allow for more examination.
When we view houses, I’ll let you know if the asking price has room for bargaining or if I believe the home is “priced to sell.” Any REALTOR will claim to truly understand the market, but be mindful, and be sure to ask your agent plenty of questions.
If it appears they don’t know everything, just call me at 512-865-0433,e-mail me or use the form below, and I’d be more than happy to answer any questions you have. My market expertise will help you stay a step above the rest throughout the entire deal.
Step 5 – Find your dream house
I’m sure we’ll find the house of your dreams in the Austin area. When we do, I’ll carefully create your purchase offer. The offer will be tailored exactly to your needs and the home, including many contingencies. A few examples are obtaining financing, completing the home inspection, and a clean title.
When we present your purchase offer, you’ll need to present “earnest money.” This is a cash deposit submitted to a seller to secure the offer to purchase the property, and it’s usually applied to the cost of closing. If your offer is accepted by the seller, we should close on the property about 30 to 60 days after. This allows sufficient time for your mortgage financing.
Step 6 – Negotiate
Unfortunately, most deals don’t close on the initial offer. It’s very common to receive a counter offer. Don’t let this intimidate you. We’ll discuss whether or not to agree to the counter offer, present our own counter offer, or decline the seller’s offer and move on.
The state of the market will play a vital role in how aggressively we negotiate the contract. We’ll also work within your budget. And at the end of the day, we’ll create a deal that’s best for you.
Step 7 – Secure a loan
Once the contract is complete, you’ll begin working with your lender to close the loan. If you’ve been pre-qualified, it won’t take long at all, but you should to keep in close contact with your mortgage lender. And I’ll look after all the property information your lender will need to close the loan.
Step 8 – Close the deal
Your mortgage lender will send you a Loan Estimate (LE) outlining closing costs within three days of taking your application. You’ll get a Loan Estimate (LE) detailing your closing costs from your mortgage lender within three days of receiving your loan application. This estimate is based on the loan amount. RESPA requirements require that it has to involve all closing costs and fall within a tight range of accuracy, and I’ll examine the estimate and let you know if it all looks permissible.
Then we’ll close on your house. This will likely occur at a title company or escrow office and will likely be a smooth and peaceful event.
Step 9 – Move in
Congratulations! Now you can move into your new house. Enjoy it. And if you need anything or have any questions, make sure you contact me at 512-865-0433,e-mail me or use the form below and I will be in contact with you.