It seems obvious, but it's good to note that the first step to buying a house is making the decision to buy. Consider the reasons you want a new house and write them down. Determine how long you want to live in the new house - does buying still make good financial sense? Can you afford a house that will meet your list of requirements? A good rule of thumb is your mortgage payment should not exceed 1/3 of your net monthly income. If you only plan to live in an area for two years or less, you may want to talk to the Realtor if buying is a good plan for you. Leasing could also work for short time periods, unless you are in a market with rapid appreciation!
Step 2 - Seek Professional Guidance
We would schedule a time to meet with you to hear the reasons you want to buy a house and your plans for the future. We'll talk about neighborhoods, schools, economic factors liable to affect the market today and tomorrow, as well as how you would like your house and neighborhood to grow with you.
At this time, we will also help you get pre-qualified for a mortgage loan. Pre-qualification is a written statement from a loan officer indicating his or her opinion that you will be approved for a mortgage loan up to a certain amount. The fact that you are pre-qualified will help us when we are negotiating the deal. Better yet, get totally preapproved and your negotiating power goes up immensely!
Step 3 - Begin the Hunt
After our initial meeting, our team will search all our resources for houses on the market that fit your criteria. We then schedule appointments to tour the houses at times convenient to you and the seller. Remember, sellers may still be in their homes, so we must make appointments to see homes that are not vacant. Initially we will show you many homes until we know your tastes after seeing the first groups of homes with you. Later, we will preview homes to determine if they are right for you based on your wants and desires. We may even give you a list of homes to drive by first to see if like the location, etc. before we bother sellers.
As we tour houses, we point out positive features and negative features. We ask you to tell us what you like and what you don't like. You'll probably amend your "wish list" as we tour houses, some things will become more important and others less important. With this new information, we refine our search criteria to narrow in on the house that meets most of your needs.
Step 4 - Know the Market
Our knowledge of the local market is an essential factor in the house search. We let you know when the market in a particular neighborhood is "hot" and requires immediate action or when the market is "cool" and allows for thoughtful consideration. We never pressure you into making a decision to buy, but will tell you if you MUST move quickly to secure a particular home.
As we tour houses, we let you know when the asking price has negotiating room and when the house is "priced to sell". Our market knowledge will keep you a step ahead of the "house hunting competition".
In a "seller's market". It is not unusual to see multiple offers on a property, full-price offers and even above-price offers. On the flip side, during a "buyer's market" there are more houses for sale than buyers. This gives us more negotiating room as houses are taking longer to sell. However, even in a buyer's market, the really good homes will get multiple offers if priced right.
Step 5 - Find Your Dream House
We are confident we'll find your dream house. When we do, we put together the purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.).
The offer is normally presented with "earnest money". This is a cash deposit made to a home seller to secure an offer to buy the property. The amount is applied to closing costs. If the seller accepts the offer, generally closing is held 30 to 45 days from the offer date (generally dependent on the turn around time of your mortgage financing).
Step 6 - Negotiate the Deal
It is not uncommon to receive a counter offer when the initial purchase offer is submitted. Don't let this discourage you. We will discuss the counter offer and decide whether or not to accept the counter offer, submit our own counter offer, or reject the counter offer and move on.
Market conditions will play a role in how aggressively we negotiate the deal. We will also work within your limits. Emotions can lead to buyer's remorse. It is better to set limits prior to negotiating an offer and stick to these limits.
Step 7 - Get a Loan
During the closing period, you will be working with your mortgage lender to close the loan. Since you pre-qualified for the loan before starting your home search, you will be that much closer to the end. We gather the necessary property information your lender will need to close the loan. We have certain loan companies and title companies that have all their documents on line for you to view and can track your loan. Ask us about these companies!
Step 8 - Close the Deal
You will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer's past experience and may not include all the closing costs. I will be glad to review the "Good Faith Estimate," answering questions and highlighting missing costs and estimates I believe to be low. When you are shopping for a loan, please ask the loan officer to provide you and "Good Faith Estimate" and compare these. Make sure you use the same down payment and interest rates.
After the inspection and loan approval there are still many steps to get the house closed. We are here to coordinate that for you, but we have to work with many individuals involved in your one property: Appraiser, surveyor, escrow officer, other agents, sellers, attorney, lender, underwriter and all their assistants! Many steps are ahead of us, and we must all be deligent to make sure everyone is doing their job!
Step 9 - Move In
Congratulations! It's time to move into your new house and make it your home. Enjoy this exciting time. I'll give you a checklist to help you remember the numerous details that will make your moving day a pleasure.
Professional service with a personal touch. Let us take care of your real estate needs.
Tammy Fariss is a licensed real estate broker in the state of Texas and all agents affiliated with Tammy Fariss, Realtors are licensed sales agents in the State of Texas
