With a little up-front planning, buying a home isn't that confusing, but the event is stressful for a lot of people. So you know exactly what to expect, I like to furnish my buyers with a road map of the whole deal. Here are my nine steps to purchasing a home.
Step 1 – Get ready to buy a home Before you start looking for a home, there are plenty of things you need to contemplate. You'll most likely want to form an outline of must-have features, get a feel for what neighborhoods and school districts you'd like to live in, and start working on your budget. Ensuring your mortgage payment is no more than a third of your monthly income is a good rule to go by.
Step 2 – Speak with a real estate agent in Los Angeles That's where I come in. I'd love to arrange a time to get together with you and communicate with you regarding your real estate needs and get an idea of your upcoming plans. We'll talk about the mortgage and housing industries, other economic factors that may potentially affect your purchase today or in the future, as well as neighborhoods and schools in the Los Angeles area.
I can also help you facilitate the loan process. Keller Williams Realty works with some of Los Angeles's best mortgage professionals, so you're in great hands. They can help you determine which kind of loan is best for you, as well as help you get approved.
Step 3 – Begin house-hunting After our first meeting, I'll begin looking for homes on the market that are a great fit for you. I'll preview many of the houses and ignore the duds, and then we'll set up appointments to tour the houses whenever it's convenient for you.
When we tour homes, I'll call attention to positive features and bad ones. And I'll ask you what things you like and dislike. It's pretty common for buyers to change their list of must-haves as we tour homes and some things become far more crucial than others. If that's the case, I'll search the listings once again and narrow it down to the home you've been wishing for.
Step 4 – Get a grasp of the housing market An agent's knowledge of the Los Angeles home market is a necessary agent in your house search. And I can assure you I'm mindful of all the schools and neighborhoods, and I'll alert you to some neighborhoods are "hot" and call for immediate action and some that are "cool" and allow for more consideration.
As we tour houses, I'll be sure to tell you when the asking price has room for negotiation and also when I know the home is "priced to sell." Every real estate agent in Los Angeles will tell you they know the housing market, but take notice, and make sure you ask your agent plenty of questions. If things don't add up, contact me at (310) 614-1393 or e-mail me at jeffgiordano@kw.com, and I'll be more than happy to answer your questions. My market knowledge will help you stay a step above the rest through the entire process.
Step 5 – Find the home you've been looking for I'm certain we'll find your dream home in the Los Angeles area. When that happens, I'll meticulously develop your home purchase offer. The offer will be tailored exactly to your needs, including several contingencies. A few examples are getting financing, finishing the home inspection, and a clean title.
Upon sending in your offer, you'll want to submit "earnest money." This is a cash deposit submitted to a home seller to secure the offer to purchase the property. The amount is often applied to the closing costs. If your offer is accepted by the seller, we should close about 30 to 60 days afterward. This allows enough time for your mortgage financing.
Step 6 – Negotiate Unfortunately most contracts aren't closed on the beginning offer. It's really 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, present our own counter offer, or decline 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 at the end of the day, we'll formulate a contract that's best for you.
Step 7 – Get a loan After we sign the final contract, you'll begin working with your mortgage lender to close the loan. If you're already pre-qualified, it shouldn't take very long at all, but you need to keep in close contact with your mortgage lender. And I'll manage all the property information your lender will need to close the loan.
Step 8 – Close the deal You'll get a Good Faith Estimate (GFE) of closing costs from your mortgage lender within three days of receiving your loan application. This estimate depends on the loan amount, and RESPA requirements dictate that it has to include all closing costs and be within a precise range of accuracy. I'll examine the estimate and let you know if it all looks permissible.
Then we'll close on your house. This should occur at a title company or escrow office and is often a smooth and stress-free occurrence.
Step 9 – Move in You made it! Now you can move into your new home. Enjoy it. And if you have any questions, simply call me at (310) 614-1393 or send me an e-mail.
When we tour homes, I'll call attention to positive features and bad ones. And I'll ask you what things you like and dislike. It's pretty common for buyers to change their list of must-haves as we tour homes and some things become far more crucial than others. If that's the case, I'll search the listings once again and narrow it down to the home you've been wishing for.
Upon sending in your offer, you'll want to submit "earnest money." This is a cash deposit submitted to a home seller to secure the offer to purchase the property. The amount is often applied to the closing costs. If your offer is accepted by the seller, we should close about 30 to 60 days afterward. This allows enough time for your mortgage financing.
