Purchasing a home is intimidating for many people, but with a bit of up-front planning, it's not too hard. We like to provide buyers with an overview of the entire deal so they'll know exactly what to expect. These are our nine steps to buying a home.
Step 1 – Prepare to purchase
There are plenty of things you'll want to contemplate before you start searching for a home. When you begin your search, you'll probably want to make a checklist of must-haves, plan for what neighborhoods you'd like to live in, and start planning your budget. Ensuring your mortgage payment is around 1/3 of your net monthly income is a good rule of thumb to follow.
Step 2 – Communicate with a real estate agent
This is where Coldwell Banker can help. We'd be more than happy to book a time to meet with you and talk about your real estate needs and get an idea of your upcoming plans. We'll discuss the mortgage and housing industries, other economic factors that could potentially affect your buying decision today or in the future, as well as neighborhoods and schools in the Washington area.
In addition, We'll help you begin the loan process. Coldwell Banker partners with some of Washington's best mortgage professionals, so you can rest assured that you're in great hands. They'll help you decide which kind of loan is best for you, as well as help you get approved.
Step 3 – Begin looking for a house
After our first meeting, We'll start searching for available houses on the market that are a good fit for you. We'll preview many of the homes and reject the bad ones, and then we'll set up appointments to tour the houses at a time that's convenient for you.
When we view the homes, We'll show you the positive features, as well as negative ones. And We'll ask you what things you like and don't like. For the most part, buyers amend their list of must-haves as we tour houses and some things become far more crucial than others. If that's the situation, We'll go back through all the listings once again and trim it down to the home you've been dreaming about.
Step 4 – Understand the housing market
Your agent's awareness of the Washington housing market is a crucial element in your house search. And We can assure you we are mindful of all the neighborhoods.
As we tour houses, we'll make sure to communicate if the list price has room for bargaining or if we believe the house is "priced to sell." Any real estate agent in Washington will convince you they truly know the market, but keep an eye out, and be sure to ask lots of questions. If it doesn't seem like they know everything, just call us at 202-469-6778 or e-mail us at chris@metrodchouses.com, and we'd be glad to answer any questions you may have. Our understanding of the market will keep you a step above the rest through the entire deal.
Step 5 – Find your dream home
We'll find the house of your dreams in the Washington area, and when that happens, we'll thoroughly develop your home purchase offer. The offer will be made to suit your needs. Whenever necessary, we never forget to make contracts contingent upon items like obtaining financing and the results of the home inspection.
When submitting your offer, you'll probably need to present "earnest money." This is a cash deposit made to the home seller to secure an offer to buy the property. In our market; sellers expect 2-5% of the purchase price. The amount is most often applied to the closing costs. If the offer is accepted by the seller, we should close on the home within 30 to 45 days after. This allows sufficient time for your mortgage financing.
Step 6 – Negotiate
A lot of contracts don't close on the first offer, and it's very common to receive a counter offer. But don't let it discourage you. We'll talk about whether or not to agree to the counter offer, submit our own counter offer, or reject the seller's offer and go on.
Market circumstances will play a big part in how aggressively we negotiate the contract. We'll also work within your financing budget. And when it's all said and done, we'll put together a contract that's best for you.
Step 7 – Secure financing
Upon finishing the contract, you'll start working with your mortgage lender to close the loan. If you've been pre-approved, it shouldn't take much time at all, but you'll want to keep in close contact with your lender. And we'll take care of all the property information your mortgage lender needs to close the loan.
Step 8 – Close the deal
Your mortgage lender will supply you with a Good Faith Estimate (GFE) outlining closing costs within three days of taking your loan application. You'll get a Good Faith Estimate (GFE) outlining your closing costs from your mortgage lender within three days of taking your application. The estimate rests on the loan amount. RESPA requirements order that it has to include all closing costs and fall within a narrow range of accuracy, and we'll examine the estimate and let you know if it all looks permissible.
Then it's time to close on your home. This will likely occur at a title company and will probably be a smooth and pleasant event.
Step 9 – Move in
Congratulations! It's time to move into your new house. Enjoy it. And if you have any questions, make sure you call us at 202-469-6778 or send us an e-mail.
