Purchasing a home can be stressful for most people. However, with a bit of planning ahead of time, it's not very complex. So you understand exactly what to expect, I like to give my buyers a road map of the entire deal. These are my nine steps to purchasing a home.
Step 1 – Prepare to purchase a home
Before you start looking for a home, there are several things you should do. You'll want to assemble an outline of items you want to have, get an idea of what school districts and neighborhoods you want to live in, and start working on your budget. A good principle to go by is that your mortgage payment should be less than 30 percent of your net monthly income.
Step 2 – Speak with a real estate agent in St Charles
This is where I come in. We'll arrange a time to get together so we can talk about your real estate needs and get an idea of your upcoming plans. We'll discuss everything from neighborhoods, schools in the St Charles area, the mortgage industry, to any other economic factors that may affect your buying decision today or in the future.
I can also assist you with getting started on your loan. There are some great mortgage professionals in St Charles, and I partner with a lot of them, so you're in great hands. They can help you decide which type of loan is best for you, as well as help you get qualified.
Step 3 – Begin looking for a house
After our initial meeting, I'll begin searching for houses on the market that are a good fit for you. I'll research many of the houses and eliminate the bad ones, and then we'll set up appointments to view the homes whenever it's most convenient for you.
When we tour the houses, I'll identify positive features and negative ones. I'll even ask you what things you like and don't like. It's pretty common for buyers to change their wish list as we tour homes and some features become more substantial than others. If such is the case, I'll search the listings once more and narrow it down to the home of your dreams.
Step 4 – Get a feel for the market
My awareness of the St Charles home market is a fundamental advantage in your home search. I am familiar with all the school districts and neighborhoods, and I will alert you to which districts are "hot" and call for prompt action and others that are "cool" and allow for careful examination.
As we tour homes, I'll let you know if the list price has room for negotiation or if I believe the house is "priced to sell." When working with an agent, be careful and be sure to ask plenty of questions, as any REALTOR® in St Charles will claim to comprehend the housing market. If it seems like they don't know everything, contact me at 630.443.8607 or e-mail me at Pamela@PJSanders.com, and I'd be more than happy to answer your questions. My understanding of the market will help you stay a step above the rest through the entire process.
Step 5 – Find the house you've been looking for
I'm certain we'll find your dream house in the St Charles area, and when that happens, I'll meticulously develop your purchase offer. The offer will be tailored exactly to your needs. Whenever necessary, I never forget to make contracts contingent upon items like your ability to secure financing and the results of the home inspection.
When we submit your offer, you'll likely need to present "earnest money." This is a cash deposit submitted to the seller to secure an offer to purchase the property. The amount is most often applied to the cost of closing. If the seller accepts your offer, we should close on the property about 30 to 60 days after. This allows enough time for your mortgage financing.
Step 6 – Negotiate
Unfortunately most contracts aren't closed on the initial offer – it's really common to receive a counter offer. But don't let it alarm you. We'll talk over whether or not to agree to the counter offer, propose our own counter offer, or decline the seller's offer and move on.
How aggressively we negotiate the deal depends on the state of the market. In addition, we'll work within your financing budget. And at the end of the day, we'll assemble a deal that's best for you.
Step 7 – Obtain your loan
Once the deal is complete, you'll begin working with your mortgage lender to close the loan. This shouldn't be a long process at all if you've been pre-qualified, but you'll need to keep in close contact with your mortgage lender. And I'll take care of all the property information your lender will need to close the loan.
Step 8 – Close the deal
Your lender will provide you with a Good Faith Estimate (GFE) of your closing costs within three days of accepting your loan application. You'll get a Good Faith Estimate (GFE) detailing closing costs from your mortgage lender within three days of taking your application. This estimate depends on the loan amount, and RESPA requirements dictate that it has to involve all closing costs and be within a strict range of accuracy. I'll review the estimate and let you know if everything looks adequate.
Then we'll close on your house. This will most often happen at a title company or escrow office and will likely be a smooth and calm occasion.
Step 9 – Move in
You made it! Now you can move into your new house. Enjoy it. And if you need anything, simply contact me at 630.443.8607 or send me an e-mail.
