Determine How Much You Can Afford
Step 1: Research
Do you already know where you want to buy? If you want a condo, townhome, or single-family home? Which
features do you like and dislike? What's must have in the home you are looking to purchase? What's available on
the market now? If you answered no to any of these questions, now is the time to start researching it. In addition
to looking for homes that interest you online first and also take note of any changes in asking prices. This could
give you valuable insight into housing trends in specific neighborhoods and help you when the time comes to
make an offer.
Notice I said to decide on your budget - not determine how much the mortgage company will give you. In most
cases, a mortgage company will pre-approve you for more than you're comfortable spending, which is why you
need to determine the monthly payment you feel comfortable witth before talking to a lender and before start
looking at actual houses. This likely includes doing a full household budget and taking into consideration what
changes other than a mortgage payment will occur once you move into your new home. If you've lived in an
apartment or with roommates, you may overlook new expenses like garbage, water, or HOA fees that could
easily blow your budget. Don't forget about the property tax.
Step 3: Get Prequalified
Just because you think you can afford a certain payment every month doesn't mean the mortgage company will
agree. Just as they may approve you for too large of an amount, they may also approve you for a lesser amount
or deny you a mortgage altogether. Lack of time at a job, insufficient credit, past bankruptcies, or other financial
issues can cause major problems when trying to secure a mortgage. Before you get your heart set on a home,
talk to a mortgage professional to find out what amount you can qualify for. This will also be an advantage when
you make an offer on a home, as most of the sellers won't entertain offers from those who aren't already
prequalified for a loan.
Step 4: Choose a Real Estate Agent
Can you shop for, look at, and ultimately make an offer on a home without real estate agent? Technically yes, but
why would you when it costs you nothing for an agent like myself to take much of the stress off of your
shoulders? Not only will I help identify properties you might be interested in, arrange showings, and ultimately
handle the offer process but I also will future pace you and walk every step with you. I may also be able to steer
you away from certain homes or neighborhoods, sugguest hidden gems, or give you pointers that will help you
find your dream home for the right price. Most importantly, I will always be on your side and look and protect your
best interest.
Step 4: Find the Right Home
This should be the most enjoyable step of the entire process (other than moving in!).
I will arrange showings of homes you're interested in that are within your price range. Take notes about what you like and don't like,
and make sure to pay attention to details. Turn light switches on and off, open and close doors, and run the faucets in various
rooms. Don't limit your inspection to the home itself. Make sure to take time to explore the neighborhood and keep an eye
on traffic at certain times of the day, the parking situation, and how close it is to necessities like schools and grocery stores.
Step 5: Find the Right Home
Once you have selected the perfect home, work with your agent to craft a fair offer based on the value of
comparable homes on the market and also comparable homes that sold within 30 to 60 days. Depending
on what the home is listed at and whether the current environment is a buyer's or seller's market, your offer
may be below at, or even above the asking price. I will be able to help you negotiate if you receive a counteroffer
and reach an agreement. At this point, the house will go into escrow.
Step 6: Have the Home Inspected &
Lender order Home Appraisal
In most cases, your offer will be contingent on having the home inspected to ensure there is no major
structural damage or large repairs needed. I can help you arrange this. If there is, you can renegotiate
your offer based on what needs to be fixed or you can withdraw it.
Your lender will have your new home appraised so they have their independent value of it. The appraisal
is to ensure that all parties involved are paying a fair price for the house.
Step 7 : Finish Paperwork
No one looks forward to all the paperwork involved in buying a home, but it's a necessary
part of the process. Fortunately, everything will be arranged by your lender, escrow company
and title company and when you're finished, you'll know you are the legal owner of your new home.
Congratulations!
After signing the final paperwork to complete the purchase, wiring the final funds to escrow, it may take a day or two for
your loan to be funded once the paperwork has been returned to the lender. Once title records the the home under your name,
you are officially the new owner of your own home.
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