For most people, purchasing a home can be an intimidating event. However, with a bit of planning ahead of time, it isn't too confusing.
I like to give buyers an outline of the whole deal so they'll know exactly what they can expect.
Below are my nine steps to buying a home.
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If you have any questions about this information or if you're ready to get started, just contact me here or e-mail me at jeffgiordano@kw.com.
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Step 1 – Prepare to purchase
Before you commence your home search, there are several things you'll want to do.
When you begin your search, you'll want to form a list of items you need to have, get a feel for what school districts you want to live in, and begin working on your budget.
Ensuring your mortgage payment is less than or around a third of your monthly income is a good rule to adhere to.
Step 2 – Contact a real estate agent
This is where I can help.
We can schedule a time to get together so we can talk about your real estate needs and get an idea of your plans for the future.
We'll talk about neighborhoods, school districts in the Los Angeles area, the mortgage and housing industries, and any additional economic factors that might affect your purchase today or in the future.
In addition, I'll help you begin the loan process.
I partner with some of the best mortgage professionals in Los Angeles, so you'll be in great hands.
They will assist you in deciding which kind of loan is best for you and help you get qualified.
Step 3 – Start house hunting
After our initial meeting, I'll start looking for available homes on the market that are great for you.
I'll preview many of the houses and reject the duds, and then we'll set up appointments to tour the homes whenever it's convenient for you.
As we tour the homes, I'll identify good features, as well as bad ones. I'll also ask you what things you like and don't like.
Frequently, buyers update their wish list as we tour houses and some things become more important than others.
If that happens, I'll look through the listings once again and narrow it down to the house you've been dreaming about.
Step 4 – Get a grasp of the housing market
My awareness of the Los Angeles home market is a crucial advantage in your house search. I'm informed of all the neighborhoods and schools, and I will let you know certain districts are "hot" and demand immediate action and some that are "cool" and allow for cautiousness.
When we tour houses, I'll be sure to tell you if the seller's asking price has room for negotiation or if I believe the house is "priced to sell."
When working with an agent, be careful and make sure you ask a lot of questions. Any real estate agent will claim to truly understand the housing market.
If things don't add up, call me at (310) 614-1393 or e-mail me at jeffgiordano@kw.com, and I'll be happy to answer any questions you may have. My knowledge of the market will keep you a step above the rest through the entire process.
Step 5 – Find the house you've been waiting for
We'll find the home of your dreams in Los Angeles, and when we do, I'll precisely develop your purchase offer. The offer will be tailored with your needs in mind. Whenever necessary, I never forget to make contracts contingent upon items like acquiring financing and the results of the home inspection.
When we turn in your offer, you'll want to submit "earnest money." This is a cash deposit made to the seller to secure an offer to buy the property. The amount is often applied to the cost of closing. If your offer is accepted by the seller, we should close within 30 to 60 days after. This allows ample time for your mortgage financing.
Step 6 – Negotiate the deal
A lot of contracts aren't closed on the initial offer. It's very common to receive a counter offer. Don't let this intimidate you. We'll discuss whether or not to accept the counter offer, present our own counter offer, or decline the seller's offer and move on.
Market conditions will play a role in how aggressively we negotiate the contract.
In addition, we'll work within your budget. And at the end of the day, we'll formulate a deal that is best for you.
Step 7 – Obtain your loan
Once the contract is finalized, you'll start working with your mortgage lender to close the loan.
If you're already pre-approved, it won't take long at all. But you'll want to keep in close contact with your mortgage lender.
And I'll deal with all the property information your lender needs to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) detailing your closing costs from your lender within three days of taking your loan application.
This estimate depends on the loan amount. RESPA requirements dictate that it has to involve all closing costs and fall within a precise range of accuracy, and I'll analyze the estimate and let you know if it all looks good.
Then we'll close on your home. This will most likely occur at a title company or escrow office and will most likely be a smooth and calm event.
Step 9 – Move in
Success! It's time to move into your new house. Enjoy it. And if you have any questions, make sure you contact me at (310) 614-1393 or send me an e-mail.