Buying a home intimidates most people, but it isn't all that difficult with a bit of planning ahead of time. So you know exactly what to expect, we like to provide our buyers with an outline of the entire deal. These are our nine steps to purchasing a home.
Step 1 – Prepare to purchase
There are a lot of things you should do prior to beginning your home search. It's likely that you'll want to create a checklist of features you want, plan for what school districts and neighborhoods you want to live in, and begin planning around your budget. Keeping your mortgage payment less than or around 1/3 of your monthly income is a good guideline to go by.
Step 2 – Contact a real estate agent
That's where we come in. We'd like to plan a time to get together with you and communicate with you regarding your real estate needs and get an idea of your upcoming plans. We'll discuss everything from neighborhoods, schools in the Galveston area, the mortgage industry, to any other economic factors that may affect your purchase today or in the future.
We can also help you begin the loan process. There are some very good mortgage professionals in Galveston, and we work with a lot of them, so you'll be in great hands. They'll assist you in determining which type of loan is best for you and help you get approved.
Step 3 – Begin your search
After our first meeting, we'll begin searching for houses on the market that suit your needs. We'll preview most of the houses and ignore the bad ones, and then we'll set up appointments to tour the houses at a time that's convenient for you.
As we tour houses, We'll identify positive features and negative ones. And we'll ask you about things you like and don't like. It's pretty common for buyers to update their must-have list as we tour homes and some items become far more crucial than others. If that's the situation, we'll search all the listings once again and narrow it down to the house you've been wishing for.
Step 4 – Understand the market
Your agent's knowledge of the Galveston market is an essential agent in your house search. And we can assure you we're mindful of all the neighborhoods and school districts, and we'll communicate what areas are "hot" and warrant prompt action and some that are "cool" and allow for more examination.
When we view homes, we'll make sure to communicate when the seller's list price has room for negotiation and also when we know the home is "priced to sell." When working with an agent, be on guard and be sure to ask lots of questions. Every REALTOR® will tell you they know the market. If things don't add up, just call us at 409.443.1052 or e-mail us at joni@paradisegalveston.com, and we'd be glad to answer any questions you may have. Our market knowledge will keep you a step above the rest throughout the entire deal.
Step 5 – Find the home of your dreams
We'll find the house of your dreams in Galveston, and when we do, we'll thoroughly create your home purchase offer. The offer will be tailored to suit your needs. Whenever necessary, we 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 present "earnest money." This is a cash deposit made to the home seller to secure an offer to buy the property. The amount is most often applied to the cost of closing. If the seller accepts the offer, we should close on the property about 30 to 60 days afterward. This allows sufficient time for your mortgage financing.
Step 6 – Negotiate the deal
Most 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 consider whether or not to accept the counter offer, submit our own counter offer, or decline the seller's offer and go on.
Market conditions will play a large role in how aggressively I negotiate the deal. In addition, we'll work within your budget. And when it's all said and done, we'll formulate a contract that works well for you.
Step 7 – Get financing
After we sign the final contract, you'll start working with your mortgage lender to close the loan. If you've been pre-qualified, it won't be a long process at all, but you'll need to stay in close contact with your mortgage lender. And we'll sort out all the property information your mortgage lender will need to close the loan.
Step 8 – Close the deal
Your lender will give you a Good Faith Estimate (GFE) of closing costs within three days of receiving your loan application. You'll get a Good Faith Estimate (GFE) outlining your closing costs from your lender within three days of accepting your loan application. This estimate depends on the loan amount. RESPA requirements dictate that it has to involve all closing costs and fall within a close range of accuracy, and we'll analyze the estimate and let you know if everything looks all right.
Then it's time to close on your home. This should take place at a title company or escrow office and will likely be a smooth and comfortable affair.
Step 9 – Move in
You made it! Now you can move into your new home. Enjoy it. And if you need anything, simply contact us at 409.443.1052 or send me an e-mail.
