For most people, purchasing a home can be a stressful event. However, with some up-front planning, it isn't that complicated.
I like to give buyers a road map of the whole deal so they'll understand exactly what to expect.
Here are my nine steps to purchasing a home.
Step 1 – Prepare to purchase
Before you begin searching for a home, there are several things you should consider.
You'll probably want to form an index of items you want to have, get a feeling for what neighborhoods and school districts you'd like to live in, and begin working on your budget.
Keeping your mortgage payment less than a third of your net monthly income is a good principle to go by.
Step 2 – Get with a real estate agent
This is where I can help.
I'd be happy to set up a time to meet with you and communicate with you about your real estate needs and get an idea of your upcoming plans.
We'll discuss neighborhoods, school districts in the San Diego area, the mortgage industry, and any other economic factors that may potentially affect your purchase today or in the future.
I can also help you facilitate the loan process.
There are some great mortgage professionals in San Diego, and I partner with a lot of them, so you'll be in great hands.
They can assist you in figuring out which kind of loan is best for you and help you get qualified.
Step 3 – Start house-hunting
After our first meeting, I'll start looking for houses on the market that meet your needs.
I'll preview most of the houses and throw out the duds, and then we'll book appointments to tour the homes when it's most convenient for you.
When we view homes, I'll point out good features and negative ones. I'll also ask you to point out what things you like and dislike.
It's common for buyers to change their wish list as we tour homes and some items become more important than others.
If that's the case, I'll go back through the listings one more time and trim it down to the house you've been waiting for.
Step 4 – Know the market
My awareness of the San Diego home market is a crucial resource in your home search. I'm acquainted with all the neighborhoods and school districts, and I will communicate what neighborhoods are "hot" and warrant immediate action and the ones that are "cold" and allow for more examination.
When we tour houses, I'll make sure to communicate if the seller's list price has room for bargaining or if I believe the house is "priced to sell."
When working with an agent, be mindful and be sure to ask a lot of questions. Every real estate agent will convince you they comprehend the market.
If it appears they don't know everything, contact me at (858) 663-2878 or e-mail me at philip.estacio@yahoo.com, and I'll be more than happy to answer your questions. My understanding of the market will help you stay a step above the rest throughout the entire process.
Step 5 – Find the home you've been looking for
I'm positive we'll find your dream house in San Diego, and when we do, I'll carefully develop your home purchase offer. The offer will be made with your needs in mind. Whenever necessary, I never forget to make contracts contingent upon items like your ability to secure financing and the results of the home inspection.
Upon submitting your purchase offer, most likely you'll want to submit "earnest money." This is a cash deposit submitted to a home seller to secure an offer to buy the property and is most often put towards the cost of closing. If the seller accepts your offer, we should close on the home about 30 to 60 days after. This allows plenty of time for your mortgage financing.
Step 6 – Negotiate
A lot of deals aren't closed on the first offer – it's pretty common to receive a counter offer. Don't let it alarm you. We'll talk about whether or not to accept the counter offer, submit our own counter offer, or refuse the seller's offer and go on.
How aggressively we negotiate the contract depends on market circumstances.
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 – Secure a loan
After we sign the final deal, you'll begin working with your lender to close the loan.
It shouldn't take much time at all if you're pre-approved, but you should to stay in close contact with your lender.
And I'll take care of all the property information your mortgage lender needs to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) outlining your closing costs from your mortgage lender within three days of accepting your loan application.
This estimate depends on the loan amount, and RESPA requirements dictate that it has to include all closing costs and fall within a precise range of accuracy. I'll study the estimate and let you know if everything looks okay.
Then it's time to close on your home. This will probably take place at a title company or escrow office and will probably be a smooth and hassle-free occasion.
Step 9 – Move in
Success! It's time to move into your new home. Enjoy it. And if you have any questions, simply contact me at (858) 663-2878 or send me an e-mail.
