Purchasing a home is a stressful event for most people, but it's not that complex with some planning ahead of time.
I like to furnish buyers with an overview of the entire deal so they'll know exactly what they can expect.
These are my nine steps to buying a home.
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Should you have questions regarding any of this information or if you're ready to get started, you can contact me here or e-mail me at richard@richardackerman.com.
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Step 1 – Prepare to buy
There are plenty of things you need to consider before you start looking for a home.
When you start your search, you'll want to make a list of features you need, plan for what school districts you want to live in, and begin planning your budget.
Keeping your mortgage payment around 30 percent of your monthly income is a good principle to follow.
Step 2 – Get in touch with a real estate agent
This is where I come in.
We can plan a time to meet so we can talk about why you want to buy a home and get an idea of your upcoming plans.
We'll talk about neighborhoods, school districts in the Boulder area, the mortgage industry, and any additional economic factors that might affect your buying decision today or in the future.
I'll also assist you in getting started on your loan.
Re/Max of Boulder, Inc. works with some of Boulder's finest mortgage professionals, so you're in great hands.
They can help you choose which kind of loan is best for you, as well as help you get approved.
Step 3 – Start looking for a home
After our initial meeting, I'll start finding available houses on the market that are great for you.
I'll preview many of the homes and exclude the duds, and then we'll set up appointments to view the houses whenever it's most convenient for you.
As we view the houses, I'll identify positive features and bad ones. And I'll ask you to talk about things you like and dislike.
Most often, buyers amend their list of must-haves as we view homes and some items become far more substantial than others.
If such is the case, I'll go back through all the listings another time and narrow it down to the house you've been dreaming about.
Step 4 – Get a feel for the market
An agent's knowledge of the Boulder home market is a leading factor in your house search. And I can assure you I'm mindful of all the neighborhoods and school districts, and I can alert you to some districts are "hot" and demand immediate action and the ones that are "cool" and allow for cautiousness.
When we view houses, I'll be sure to tell you when the list price has room for bargaining and also when I know the house is "priced to sell."
When working with an agent, trust your instincts and be sure to ask lots of questions, as any real estate agent in Boulder will claim to comprehend the market.
If things don't add up, just call me at 303-449-7000 or e-mail me at richard@richardackerman.com, and I'll be happy to answer any questions you may have. My understanding of the market will keep you a step ahead throughout the entire deal.
Step 5 – Find the house you've been waiting for
I'm certain we'll find the house of your dreams in the Boulder area. When we do, I'll precisely develop your purchase offer. The offer will be tailored to suit your needs, including many contingencies. A few examples are obtaining financing, finishing the home inspection, and a clean title.
When submitting your purchase offer, you'll need to present "earnest money." This is a cash deposit made to a home seller to secure the offer to buy the property and is typically 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 necessary time for your mortgage financing.
Step 6 – Negotiate the deal
A lot of contracts aren't closed on the first offer. It's very common to receive a counter offer. But don't let it alarm you. We'll discuss whether or not to agree to the counter offer, propose our own counter offer, or reject the seller's offer and go on.
The state of the market will play a part in how aggressively we negotiate the contract.
We'll also work within your financing limits. And at the end of the day, we'll create a deal 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.
If you're pre-qualified, it shouldn't take much time at all, but you should to keep in close contact with your mortgage lender.
And I'll look after 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) of closing costs within three days of receiving your loan application. You'll get a Good Faith Estimate (GFE) outlining your closing costs from your lender within three days of getting your loan application.
The estimate is formed from the loan amount. RESPA requirements order that it has to involve all closing costs and fall within a precise range of accuracy, and I'll go over the estimate and let you know if it all looks all right.
Then we'll close on your home. This will probably occur at a title company or escrow office and is often a smooth and stress-free affair.
Step 9 – Move in
Congratulations! It's time to move into your new home. Enjoy it. And if you have any questions, simply call me at 303-449-7000 or send me an e-mail.