Purchasing a home is intimidating for many people. However, with a little planning ahead of time, it isn't that hard. So they know exactly what to expect, I like to provide buyers with an outline of the entire deal. Here are my nine steps to buying a home. Should you have any questions regarding any of this information or if you're prepared to get started, simply contact me here or e-mail me at .
Step 1 – Get ready to buy
Before you begin searching for a home, there are many things you need to take into account. You'll want to create a check list of features you need, get an idea of what school districts you want to live in, and begin working on your budget. Keeping your mortgage payment around 30 percent of your net monthly income is a good guideline to follow.
Step 2 – Communicate with a real estate agent in Rice Lake
That's where I can help. I'd be more than happy to schedule a time to meet with you and speak with you about 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 might affect your purchase today or in the future, as well as neighborhoods and schools in the Rice Lake area.
I'll also help you begin the loan process. There are some great mortgage professionals in Rice Lake, and I work with a lot of them, so you're in great hands. They'll assist you in figuring out which type of loan is best for you and help you get approved.
Step 3 – Begin looking for a home
Following our initial meeting, I'll begin searching for available houses on the market that meet your needs. I'll get a sneak peek of many of the homes and ignore the duds, and then we'll set up appointments to view the houses when it's convenient for you.
When we tour houses, I'll point out positive features and negative ones. I'll also ask you what things you like and don't like. It's pretty common for buyers to update their must-have list as we tour homes and some items become more important than others. If that happens, I'll go back through all the listings again and trim it down to the house you've been waiting for.
Step 4 – Get a grasp of the housing market
My knowledge of the Rice Lake market is a necessary aspect in your house search. I am conscious of all the schools and neighborhoods, and I will alert you to what areas are "hot" and call for immediate action and others that are "cold" and allow for thoughtful consideration.
When we tour homes, I'll be sure to tell you when the seller's list price has room for bargaining and when I believe the home is "priced to sell." When working with an agent, be careful and be sure to ask plenty of questions, as every REALTOR will claim to truly understand the housing market. If things don't add up, call me at (715) 736-7000 or e-mail me at , and I'll be happy to answer any questions you may have. My understanding of the market will keep you a step above the rest through the entire process.
Step 5 – Find the house you've been looking for
We'll find the house of your dreams in the Rice Lake area, and when that happens, I'll meticulously create your purchase offer. The offer will be tailored with your needs in mind and the home, including some contingencies. A few examples are obtaining financing, completing the inspection, and a clean title.
When submitting your offer, you'll want to submit "earnest money." This is a cash deposit made to a home seller to secure an offer to buy the property. The amount is often applied to the cost of closing. If the offer is accepted by the seller, we should close on the home within 30 to 60 days after. This allows enough time for your mortgage financing.
Step 6 – Negotiate
Unfortunately most contracts don't close on the first offer. It's pretty common to receive a counter offer. Don't let it discourage you. We'll figure out whether or not to accept the counter offer, present our own counter offer, or refuse the seller's offer and move on.
The state of the market will play a part in how aggressively we negotiate the contract. In addition, we'll work within your financing constraints. And when it's all said and done, we'll formulate a contract that's best for you.
Step 7 – Secure a loan
After the deal is complete, you'll begin working with your lender to close the loan. It shouldn't take very long at all if you've been pre-approved, but you should to keep in close contact with your lender. And I'll take care of all the property information your mortgage lender needs to close the loan.
Step 8 – Close the deal
You'll get a Loan Estimate (LE) outlining your closing costs from your lender within three days of receiving your loan application. This estimate rests on the loan amount. RESPA requirements order that it has to contain all closing costs and be within a close range of accuracy, and I'll go over the estimate and let you know if it all looks permissible.
Then it's time to close on your house. This will most likely occur at a title company or escrow office and will likely be a smooth and easygoing affair.
Step 9 – Move in
Congratulations! Now you can move into your new house. Enjoy it. And if you need anything, make sure you contact me at (715) 736-7000 or e-mail me at .