For a lot of people, purchasing a home can be an intimidating event. However, with some up-front planning, it's not too confusing.
So you'll understand exactly what to expect, I like to give my buyers an overview of the whole deal.
These are my nine steps to buying a home.
Step 1 – Prepare to purchase
There are a lot of things you need to take into account prior to starting your home search.
When you start your search, you'll want to put together a list of features you need to have, get a feel for what school districts and neighborhoods you'd like to live in, and start working on your budget.
Keeping your mortgage payment less than or close to 30 percent of your net monthly income is a good rule of thumb to follow.
Step 2 – Get with a real estate agent in Orange County
That's where I come in.
We can set up a time to meet so we can talk about why you want to buy a home and get an idea of your plans for the future.
We'll talk about the mortgage industry, other economic factors that may affect your buying decision today or in the future, as well as neighborhoods and school districts in the Orange County area.
I can also help you get started on your loan.
There are some great mortgage professionals in Orange County, and I work with a lot of them, so you can rest assured that you're in great hands.
They can help you figure out which kind of loan is best for you, as well as help you get qualified.
Step 3 – Begin your search
After our initial meeting, I'll begin searching for houses on the market that are a great fit for you.
I'll research most of the houses and exclude the bad ones, and then we'll book appointments to tour the houses at a time that's convenient for you.
As we tour the houses, I'll point out positive features and bad ones. I'll also ask you to point out what things you like and dislike.
Generally, buyers amend their wish list as we tour homes and some items become far more important than others.
If that happens, I'll look through all the listings once again and trim it down to the home you've been wishing for.
Step 4 – Get a grasp of the housing market
My knowledge of the Orange County housing market is a necessary benefit in your home search. I am mindful of all the school districts and neighborhoods, and I can let you know certain areas are "hot" and demand prompt action and others that are "cold" and allow for thoughtful consideration.
As we view houses, I'll make sure to communicate when the seller's list price has room for bargaining and when I think the house is "priced to sell."
When working with an agent, be mindful and make sure you ask lots of questions, as every real estate agent in Orange County will convince you they truly know the housing market.
If it doesn't seem like they know everything, call me at 714.392.3443 or e-mail me at lori@loribitterman.com, and I'd be more than happy to answer your questions. My knowledge of the market will keep you a step ahead through the entire deal.
Step 5 – Find the home of your dreams
We'll find the house of your dreams in Orange County, and when we do, I'll thoroughly create your home purchase offer. The offer will be tailored exactly to your needs. Whenever necessary, I never forget to make contracts contingent upon items like acquiring financing and the results of the home inspection.
Upon submitting your purchase offer, you'll probably need to present "earnest money." This is a cash deposit made to a seller to secure an offer to purchase the property and is typically applied to the cost of closing. If the offer is accepted by the seller, we should close about 30 to 60 days after. This allows necessary time for your mortgage financing.
Step 6 – Negotiate
A lot of contracts aren't closed on the initial offer, and it's pretty common to receive a counter offer. Don't let it alarm you. We'll talk over whether or not to consent to the counter offer, submit our own counter offer, or refuse the seller's offer and go on.
How aggressively we negotiate the deal depends on the state of the market.
We'll also work within your budget. And when it's all said and done, we'll put together a contract that's best for you.
Step 7 – Secure your loan
Upon finalizing the deal, you'll begin working with your mortgage lender to close the loan.
This shouldn't take long at all if you're pre-qualified, but you should to keep in close contact with your mortgage lender.
And I'll manage all the property information your mortgage lender will need to close the loan.
Step 8 – Close the deal
Your mortgage lender will provide you with a Good Faith Estimate (GFE) detailing your closing costs within three days of accepting your loan application. You'll get a Good Faith Estimate (GFE) of closing costs from your mortgage lender within three days of receiving your loan application.
The estimate rests on the loan amount, and RESPA requirements mandate that it has to include all closing costs and fall within a narrow range of accuracy. I'll study the estimate and let you know if it all looks permissible.
Then we'll close on your home. This should occur at a title company or escrow office and will most likely be a smooth and peaceful occurrence.
Step 9 – Move in
You made it! Now you can move into your new home. Enjoy it. And if you need anything or have any questions, make sure you call me at 714.392.3443 or send me an e-mail.
