With some up-front planning, purchasing a home isn't all that complicated, but the event intimidates a lot of people.
So you understand exactly what to expect, I like to provide my buyers with an overview of the entire deal.
Here are my nine steps to buying a home.
Step 1 – Prepare to purchase
Before you start looking for a home, there are plenty of things you need to consider.
You'll most likely want to create an index of must-have features, get a feeling for what school districts you want to live in, and start planning your budget.
Keeping your mortgage payment less than a third of your net monthly income is a good rule of thumb to follow.
Step 2 – Speak with a real estate agent in Peoria
This is where Jim Maloof Realtor 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 upcoming plans.
We'll talk about everything from neighborhoods, school districts in the Peoria area, the mortgage and housing industries, to any other economic factors that might affect your buying decision today or in the future.
In addition, I'll help you facilitate the loan process.
There are some very good mortgage professionals in Peoria, and I work with a lot of them, so you're in great hands.
They'll help you decide which type of loan is best for you, as well as help you get approved.
Step 3 – Start looking
After our initial meeting, I'll start looking for available homes on the market that are great for you.
I'll research most of the homes and throw out the bad ones, and then we'll book appointments to view the homes when it's convenient for you.
When we tour the homes, I'll identify good features, as well as negative ones. I'll even ask you what things you like and dislike.
Most often, buyers revise their list of must-haves as we view homes and some features become far more essential than others.
If that's the situation, I'll search all the listings again and narrow it down to the home you've been wishing for.
Step 4 – Know the market
Your agent's understanding of the Peoria home market is a leading agent in your house search. And I assure you I'm informed of all the schools and neighborhoods, and I will let you know some districts are "hot" and require immediate action and some that are "cool" and allow for cautiousness.
When we view houses, I'll make sure to communicate if the list price has room for negotiation or if I believe the house is "priced to sell."
Be on guard and be sure to ask lots of questions, as every real estate agent in Peoria will tell you they truly understand the market.
If it appears they don't know everything, just call me at 309-690-4282 or e-mail me at debpaulcrs@yahoo.com, and I'll be more than happy to answer any questions you may have. My market knowledge will help you stay a step above the rest throughout the entire process.
Step 5 – Find your dream home
We'll find the house of your dreams in the Peoria area, and when that happens, I'll thoroughly create your purchase offer. The offer will be written exactly to your needs. Whenever necessary, I never forget to make contracts contingent upon items like obtaining financing and the results of the home inspection.
When turning in your offer, you'll likely need to present "earnest money." This is a cash deposit submitted to a seller to secure the offer to buy the property. The amount is typically applied to the closing costs. If the seller accepts the offer, we should close on the property within 30 to 60 days after. This allows sufficient time for your mortgage financing.
Step 6 – Negotiate
A lot of deals aren't closed on the initial offer – it's really common to receive a counter offer. But don't let it alarm you. We'll figure out whether or not to take the counter offer, submit our own counter offer, or refuse the seller's offer and go on.
Market circumstances determine how aggressively we negotiate the contract.
We'll also work within your financing budget. And at the end of the day, we'll formulate a deal that's best for you.
Step 7 – Obtain your loan
After we sign the final sales contract, you'll begin working with your mortgage lender to close the loan.
If you're pre-approved, this 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 needs to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) of your closing costs from your mortgage lender within three days of accepting your application.
This estimate is based on the loan amount. RESPA requirements mandate that it has to include all closing costs and be within a strict range of accuracy, and I'll study the estimate and let you know if everything looks all right.
Then we'll close on your house. This will most often take place at a title company or escrow office and will probably be a smooth and hassle-free affair.
Step 9 – Move in
Success! Now you can move into your new home. Enjoy it. And if you need anything, just contact me at 309-690-4282 or send me an e-mail.
