With a little planning ahead of time, purchasing a home isn't very difficult, but the event can be stressful for many people.
I like to supply buyers with a road map of the entire deal so they understand exactly what they can expect.
Here are my nine steps to purchasing a home.
Step 1 – Get ready to purchase a home
There are plenty of things you should take into account before you start looking for a home.
When you begin your search, you'll want to create a checklist of features you need to have, get a feel for what neighborhoods you want to live in, and begin working on your budget.
Ensuring your mortgage payment is no more than a third of your monthly income is a good rule of thumb to adhere to.
Step 2 – Get with a real estate agent in Cambridge
That's where I come in.
We'll arrange a time to get together so we can talk about why you want to buy a home and get an idea of your plans for the future.
We'll talk about everything from neighborhoods, schools in the Cambridge area, the mortgage industry, to any other economic factors that may affect your buying decision today or in the future.
I'll also help you start the loan process.
There are some great mortgage professionals in Cambridge, and I work with a lot of them, so you'll be in great hands.
They can help you decide which kind of loan is best for you, as well as help you get qualified.
Step 3 – Start house hunting
After our initial meeting, I'll begin looking for homes on the market that are good for you.
I'll research most of the houses and exclude the bad ones, and then we'll book appointments to tour the houses whenever it's most convenient for you.
As we view the homes, I'll show you the positive features and bad ones. I'll also ask you about things you like and don't like.
It's common for buyers to update their list of must-haves as we tour homes and some things become far more essential than others.
If such is the case, I'll look through the listings once more and trim it down to the home you've been dreaming about.
Step 4 – Know the housing market
My awareness of the Cambridge housing market is a fundamental asset in your house search. I am informed of all the schools and neighborhoods, and I'll alert you to some districts are "hot" and require immediate action and others that are "cold" and allow for careful consideration.
As we view homes, I'll be sure to tell you if the seller's asking 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 lots of questions, as every real estate agent in Cambridge will tell you they know the housing market.
If things don't add up, call me at (617) 817-3344 Direct or e-mail me at tmoore@cambridgepropertysales.com, and I'd be glad to answer any questions you might have. My knowledge of the market will keep you a step ahead through the entire deal.
Step 5 – Find the house you've been looking for
We'll find your dream home in the Cambridge area, and when that happens, I'll precisely create your purchase offer. The offer will be written with your needs in mind. Whenever necessary, I never forget to make contracts contingent upon items like acquiring financing and the results of the home inspection.
When we send in your offer, you'll want to submit "earnest money." This is a cash deposit submitted to a home seller to secure the offer to buy the property. The amount is usually put towards the closing costs. If the seller accepts the offer, we should close on the property within 30 to 60 days afterward. This allows plenty of time for your mortgage financing.
Step 6 – Negotiate the deal
Unfortunately most contracts don't close on the beginning offer – it's extremely common to receive a counter offer. Don't let this alarm you. We'll discuss whether or not to take the counter offer, submit our own counter offer, or refuse the seller's offer and go on.
The state of the market determines how aggressively we negotiate the contract.
In addition, we'll work within your financing constraints. And when it's all said and done, we'll formulate a deal that is best for you.
Step 7 – Obtain your loan
After the contract is signed, you'll start working with your lender to close the loan.
It shouldn't take much time at all if you're already pre-approved, but you'll need to stay in close contact with your mortgage lender.
And I'll deal with 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 your closing costs from your mortgage lender within three days of accepting your loan application.
The estimate is formed from the loan amount, and RESPA requirements mandate that it has to include all closing costs and be within a precise range of accuracy. I'll analyze the estimate and let you know if everything looks adequate.
Then it's time to close on your home. This will most often occur at a title company or escrow office and will likely be a smooth and comfortable occurrence.
Step 9 – Move in
Congratulations! Now you can move into your new house. Enjoy it. And if you need anything or have any questions, just call me at (617) 817-3344 Direct or send me an e-mail.
