Buying a home can be as challenging as it is exciting. It’s a task that requires planning and preparation for success. As your agents, we will prepare you thoroughly for the challenges ahead and guide you through each step of the home buying process.
Step 1: Get Pre-Approved
Getting pre-approved by a lender should be the first item on your list. Once you’re pre-approved you will have a better sense of what you can afford. Having a letter of pre-approval in hand is crucial for the outcome of any offer you’ll make on a property as today’s sellers want to work with serious buyers who have their ducks in a row.
Step 2: Determine Your Financial Comfort Zone
Even though you might be approved for a loan of a certain size, are you comfortable with that corresponding monthly payment? Write down your combined monthly income and expenses, and determine the maximum monthly mortgage payment that you would be comfortable with. This amount may vary from the amount shown on your pre-approval. You want to make sure to stay within your comfort zone even if your lender has approved you for more.
Step 3: Outline Your Location & Housing Requirements
What neighborhoods would you like to live in and what are your criteria for choosing a home? Create a list that outlines all your housing requirements and the locations you’d like to live in, and then prioritize the items on your list. There are some things that are mandatory, some that are ideal, and some that are wish list items. Remember to be realistic. You might not get 100% of the items you want but the goal will be to get as close as possible within your budget.
Step 4: The Home Search
After you have completed the first three steps we’re ready to begin. We will search for and preview active listings that meet your criteria. We’ll then show you the most promising listings at your earliest convenience. We also know you will be conducting your own search online and you are welcome to send us any potential listings you found. Together, we can alter location and housing requirements as you become more familiar with the market and your budget.
Step 5: Writing, Presenting & Negotiating an Offer
Once you find a home that you wish to purchase, we will prepare a comparable market analysis to advise you in making an appropriate offer in both price and terms. We’ll guide you through the purchase and sale agreement and all other forms and addenda, and advise you on how to make your offer strong. We will present your offer to the seller and the listing agent and negotiate your terms.
Step 6: Mutual Acceptance & Closing
When the parties agree to all terms of the contract it is called mutual acceptance. Once we have mutual acceptance, the closing process begins. From this point forward we will manage your contingencies and coordinate your transaction with the assistance of an escrow company (a neutral third party closing agent), your lender, the title company and any other parties that may become involved. We will oversee all the players in this process to make sure that everything closes on time!