Step 1: Find a Great Real Estate Agent (me) and Get Preapproved for Your Mortgage
- Connect with me: I can refer you to excellent local lenders.
- Choose a local lender: Avoid national online lenders as they often have higher fees due to extensive advertising costs. Local lenders usually offer better service and lower costs. Once you're pre-approved, avoid using credit cards and definitely don't buy anything new - no new cars, furniture, appliance, etc. because it could affect your debt-to-income ratio negatively and lenders look at DTI to approve your loan. If it changes, the amount you're approved for could go down.
Step 2: Define Your Must-Haves and Wants
- Provide a must-have list: This includes essential features such as 3 bedrooms, 2 baths, and a specific school district - anything that is a MUST! or you won't buy.
- Provide a ranked wants list: This could include features like a fireplace or a primary bedroom on the main floor, things that you could live without but would like.
- Stay within your pre-approved budget: Only consider houses that meet all of your must-haves and fit within your budget. Aim to satisfy as many of your wants as possible but remember, there is no such thing as a perfect house. There is the best fit that is perfect for you.
Step 3: Get All Your Questions Answered
- Ask questions freely: Do not hesitate to seek answers to any questions you have throughout the process. Buying a home is a very big deal and a huge investment - usually the biggest purchase most people make in their life so - get your questions answered.
Step 4: Make an Offer
- Preparing the Offer: I will consult with you, advise you and then draft your offer. Then, I will submit it to the listing agent who will present it to the seller.
- Negotiation process: The seller will either accept, counteroffer, or reject your offer. We will discuss your options in each scenario, especially if there are competing bids. I will advocate for you and do all I can to make a deal acceptable to both you and the sellers keeping your instructions and best interests as the priority.
Step 5: Pay Your Earnest Money
- Submit earnest money: Once your offer is accepted, I will collect your earnest money which will be deposited into an escrow account by whomever is designated as the holder of the earnest money - usually one of the brokers or the closing attorney. This money will go towards your closing costs.
- Understand the terms: If you cancel for contractual reasons, you get your earnest money back. If you cancel without a contractual cause, it goes to the seller.
- Remember – Don’t Buy ANYTHING on credit! It could affect your debt-to-income ratio!
Step 6: Hire a Home Inspector
- Schedule inspections: Complete all necessary inspections within the given timeframe. I can help you find reputable inspectors if needed.
- Specialist inspections: If the property has specific features like a fireplace or pool, hire the appropriate specialists.
- Seller Makes Repairs: I will negotiate on your behalf to get required repairs made.
Step 7: Get an Appraisal
- You Lender orders the appraisal: After your inspection period, your lender will require an appraisal. You will get a copy. Share that with me.
- Review the appraisal: If the appraisal matches or exceeds the offer price, proceed as planned. If it is lower, I can negotiate on your behalf with the seller to try to get the price to match the appraisal. If seller refuses, you can choose to pay the difference or cancel the offer and get your earnest money back.
Step 8: Title Search and Owner’s Title Policy
- Lender orders title work: The lender will order a title search and owner's title policy through the closing attorney or title company. This process takes a couple of weeks.
Step 9: Seller Makes Agreed Upon Repairs
- Complete repairs: The seller will complete any negotiated repairs or contingencies agreed upon in the binding agreement.
Step 10: Final Steps Before Closing
- Receive the Clear to Close: Once all conditions are met, you will receive the "Clear to Close" from your lender.
- Prepare for closing: Pay your closing costs and down payment. Meet at the attorney’s office to sign the final documents.
Step 11: Start packing - Congratulations! It’s time to move into your new home.
