Purchasing a home can be stressful for a lot of people, but it isn't that complicated with some up-front planning. I like to provide buyers with an overview of the entire deal so they know exactly what to expect. Here are my nine steps to purchasing a home.
Step 1 – Get ready to purchase a home
Before you start your home search, there are several things you need to do. When you start your search, you'll want to put together a list of items you need to have, get a plan of what school districts and neighborhoods you want to live in, and start working on your budget. Keeping your mortgage payment around a third of your net monthly income is a good rule to follow.
Step 2 – Talk to a real estate agent
This is where FLORIDA REAL ESTATE CENTER can help. We can set up a time to get together so we can talk about why you want to buy a home and get an idea of your upcoming plans. We'll talk about the mortgage industry, other economic factors that could affect your purchase today or in the future, as well as neighborhoods and schools in the St. Petersburg area.
I'll also assist you in getting started on your loan. FLORIDA REAL ESTATE CENTER works with some of St. Petersburg's finest mortgage professionals, so you'll be in great hands. They will assist you in determining which kind of loan is best for you and help you get approved.
Step 3 – Begin house hunting
Following our first meeting, I'll begin searching for available homes on the market that are good for you. I'll preview most of the homes and ignore the bad ones, and then we'll schedule appointments to tour the homes whenever it's convenient for you.
When we view the houses, I'll call attention to good features, as well as bad ones. I'll even ask you to tell us about things you like and don't like. It's pretty common for buyers to update their must-have list as we view homes and some things become far more necessary than others. If such is the case, I'll go back through all the listings once more and narrow it down to the home you've been dreaming about.
Step 4 – Get a grasp of the housing market
An agent's understanding of the St. Petersburg home market is a crucial component in your house search. And I assure you I'm acquainted with all the school districts and neighborhoods, and I'll let you know which districts are "hot" and warrant prompt action and some that are "cold" and allow for more analysis.
When we tour homes, I'll let you know when the list price has room for bargaining and when I think the house is "priced to sell." When working with an agent, be mindful and make sure you ask plenty of questions, as every real estate agent will tell you they comprehend the market. If it doesn't seem like they know everything, just call me at (727) 867-2147 or e-mail me at mowen@floridarecenter.com, and I'll be happy to answer any questions you may have. My market expertise will help you stay a step ahead through the entire process.
Step 5 – Find the house you've been waiting for
I'm confident we'll find your dream house in St. Petersburg. When that happens, I'll meticulously create your purchase offer. The offer will be tailored to suit your needs, including a lot of contingencies, such as acquiring financing, carrying out the home inspection, and a clean title.
When we turn in your offer, you'll need to submit "earnest money." This is a cash deposit made to a home seller to secure an offer to buy the property. The amount is usually put towards the cost of closing. If your offer is accepted by the seller, we should close on the property about 30 to 60 days afterward. This allows ample time for your mortgage financing.
Step 6 – Negotiate the deal
Most contracts don't close on the first offer, and it's very common to receive a counter offer. Don't let this alarm you. We'll talk over whether or not to accept the counter offer, present our own counter offer, or reject the seller's offer and move on.
Market circumstances determine how aggressively we negotiate the deal. We'll also work within your financing constraints. And when it's all said and done, we'll formulate a deal that works well for you.
Step 7 – Get your loan
Upon signing the contract, you'll start working with your lender to close the loan. If you're pre-approved, it won't take very long at all, but you'll want to keep in close contact with your mortgage lender. And I'll sort out all the property information your lender will need to close the loan.
Step 8 – Close the deal
Your lender will furnish you with a Good Faith Estimate (GFE) detailing closing costs within three days of accepting your application. You'll get a Good Faith Estimate (GFE) outlining your closing costs from your lender within three days of receiving your application. The estimate rests on the loan amount. RESPA requirements dictate that it has to involve all closing costs and fall within a tight range of accuracy, and I'll study the estimate and let you know if everything looks okay.
Then we'll close on your house. This will most likely happen at a title company or escrow office and will likely be a smooth and peaceful occasion.
Step 9 – Move in
Success! Now you can move into your new house. Enjoy it. And if you have any questions, make sure you call me at (727) 867-2147 or send me an e-mail.
