Purchasing a home is intimidating for a lot of people, but it isn't too complex with a little up-front planning.
So you'll understand exactly what to expect, I like to give my buyers an overview of the entire deal.
These are my nine steps to buying a home.
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When you're ready to get started, just contact me here or send e-mail to frances@southbayhomeloans.com. I'm glad to address questions you have about this information.
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Step 1 – Prepare to buy
There are many things you'll want to contemplate prior to starting your home search.
You'll want to form a checklist of must-haves, get a feeling for what neighborhoods you want to live in, and begin working on your budget.
A good rule of thumb to adhere to is that your mortgage payment should be no more than 1/3 of your net monthly income.
Step 2 – Speak with a real estate agent
This is where I can help.
I'd love to plan a time to get together with you and speak with you regarding your real estate needs and get an idea of your plans for the future.
We'll talk about the mortgage and housing industries, other economic factors that could affect your buying decision today or in the future, as well as neighborhoods and school districts in the Rancho Palos Verdes area.
I can also help you begin the loan process.
I partner with some of Rancho Palos Verdes's best mortgage professionals, so you'll be in great hands.
They'll help you determine which type of loan is best for you, as well as help you get approved.
Step 3 – Begin your search
Following our initial meeting, I'll begin finding available houses on the market that are good for you.
I'll get a sneak peek of many of the homes and remove the duds, and then we'll schedule appointments to view the homes when it's convenient for you.
As we tour homes, I'll point out good features and negative ones. And I'll ask you what things you like and dislike.
It's pretty common for buyers to amend their wish list as we tour houses and some things become more crucial than others.
If that's the case, I'll look through the listings once more and narrow it down to the house you've been waiting for.
Step 4 – Understand the market
My knowledge of the Rancho Palos Verdes home market is a crucial asset in your home search. I am conscious of all the neighborhoods and schools, and I can alert you to what areas are "hot" and warrant immediate action and the ones that are "cool" and allow for more examination.
When we view houses, I'll let you know when the seller's asking price has room for negotiation and when I trust the house is "priced to sell."
Be on guard and make sure you ask your agent a lot of questions, as every REALTOR® in Rancho Palos Verdes will convince you they comprehend the market.
If things don't add up, contact me at (310) 784-2828 or e-mail me at frances@southbayhomeloans.com, and I'll be more than happy to answer your questions. My market expertise will keep you a step ahead throughout the entire process.
Step 5 – Find the home you've been looking for
I'm sure we'll find the house of your dreams in Rancho Palos Verdes. When that happens, I'll carefully develop your home purchase offer. The offer will be tailored exactly to your needs, including many contingencies. A few examples are acquiring financing, carrying out the inspection, and a clean title.
When submitting your purchase offer, you'll likely want to submit "earnest money." This is a cash deposit given to a seller to secure an offer to purchase the property. The amount is most often applied to the cost of closing. If the offer is accepted by the seller, we should close within 30 to 60 days afterward. This allows plenty of time for your mortgage financing.
Step 6 – Negotiate
A lot of contracts don't close on the beginning offer, and it's really common to receive a counter offer. Don't let it discourage you. We'll talk over whether or not to consent to the counter offer, present our own counter offer, or reject the seller's offer and move on.
Market conditions will play a big part in how aggressively we negotiate the deal.
In addition, we'll work within your financing limits. And at the end of the day, we'll compose a contract that works well for you.
Step 7 – Get a loan
Once we sign the final deal, you'll start working with your mortgage lender to close the loan.
If you're already pre-approved, it won't take very long at all. However, you'll need to stay in close contact with your mortgage lender.
And I'll handle all the property information your mortgage lender needs to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) outlining closing costs from your lender within three days of taking your loan application.
This estimate depends on the loan amount. RESPA requirements require that it has to include all closing costs and fall within a narrow range of accuracy, and I'll study the estimate and let you know if it all looks all right.
Then it's time to close on your house. This will most likely take place at a title company or escrow office and should be a smooth and calm affair.
Step 9 – Move in
Success! Now you can move into your new home. Enjoy it. And if you need anything or have any questions, simply call me at (310) 784-2828 or send me an e-mail.
