Purchasing a home is stressful for many people, but with a bit of planning ahead of time, it's not very hard. I like to give buyers an overview of the entire deal so they understand exactly what to expect. Here are my nine steps to buying a home.
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When you're ready to get started, simply contact me here or send e-mail to david@icoversd.com. I'm glad to answer any questions you have regarding this information. |
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Step 1 – Prepare to purchase
Before you begin looking for a home, there are plenty of things you'll want to do. When you begin your search, you'll probably want to create a check list of items you want to have, get an idea of what school districts and neighborhoods you want to live in, and start working on your budget. Keeping your mortgage payment around 30 percent of your monthly income is a good rule of thumb to follow.
Step 2 – Contact a real estate agent
This is where David Heller Real Estate comes in. I'd love to set up a time to meet with you and communicate with you about your real estate needs and get an idea of your plans for the future. We'll talk about everything from neighborhoods, school districts in the La Jolla area, the mortgage industry, to any other economic factors that may affect your buying decision today or in the future.
I can also help you get started on your loan. There are some great mortgage professionals in La Jolla, and I work with a lot of them, so you'll be in great hands. They'll help you decide which kind of loan is best for you, as well as help you get approved.
Step 3 – Start your search
After our first meeting, I'll begin looking for houses on the market that suit your needs. I'll get a sneak peek of most of the homes and throw out the duds, and then we'll set up appointments to view the homes at a time that's convenient for you.
As we view homes, I'll show you the good features, as well as bad ones. And I'll ask you to tell us about things you like and dislike. It's pretty common for buyers to update their wish list as we view houses and some features become more necessary than others. If that's the situation, I'll search all the listings again and narrow it down to the house of your dreams.
Step 4 – Get a grasp of the housing market
An agent's understanding of the La Jolla home market is an essential aspect in your house search. And I can assure you I'm acquainted with all the neighborhoods and schools, and I'll let you know some neighborhoods are "hot" and call for prompt action and some that are "cold" and allow for more analysis.
As we view homes, I'll let you know if the list price has room for negotiation or if I believe the home is "priced to sell." When working with an agent, be on guard and make sure you ask plenty of questions, as any REALTOR® in La Jolla will convince you they truly understand the home market. If things don't add up, call me at 858-349-8494 or e-mail me at david@icoversd.com, and I'd be happy to answer any questions you may have. My knowledge of the market will keep you a step ahead throughout the entire deal.
Step 5 – Find the home you've been looking for
I'm sure we'll find your dream house in La Jolla. When we do, I'll thoroughly create your real estate purchase offer. The offer will be tailored with your needs in mind, including many contingencies, such as obtaining financing, completing the inspection, and a clean title.
When we send in your purchase offer, you'll need to present "earnest money." This is a cash deposit made to the seller to secure an offer to buy the property, and it's usually applied to the cost of closing. If the seller accepts your offer, we should close on the home about 30 to 60 days afterward. This allows enough time for your mortgage financing.
Step 6 – Negotiate the deal
A lot of deals aren't closed on the first offer. It's widely common to receive a counter offer. Don't let this intimidate you. We'll talk about whether or not to consent 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 big part in how aggressively we negotiate the deal. In addition, we'll work within your budget. And at the end of the day, we'll put together a deal that's best for you.
Step 7 – Secure your loan
Once the contract is complete, you'll start working with your lender to close the loan. If you're pre-approved, this won't be a long process at all, but you'll want to keep in close contact with your lender. And I'll handle all the property information your mortgage lender will need to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) detailing closing costs from your mortgage lender within three days of taking your application. This estimate is formed from the loan amount. RESPA requirements mandate that it has to include all closing costs and be within a close range of accuracy, and I'll analyze the estimate and let you know if it all looks good.
Then it's time to close on your home. This will likely occur at a title company or escrow office and will probably be a smooth and peaceful affair.
Step 9 – Move in
Congratulations! Now you can move into your new house. Enjoy it. And if you have any questions, just call me at 858-349-8494 or send me an e-mail.
