Purchasing a home is stressful for most people, but it isn't all that complex with a little up-front planning.
So you understand exactly what to expect, I like to provide my buyers with a road map of the entire deal.
Here are my nine steps to purchasing a home.
Step 1 – Get ready to buy a home
There are plenty of things you should consider before commencing your home search.
When you begin your search, you'll want to form an index of items you need to have, plan for what neighborhoods you want to live in, and start planning your budget.
A good rule of thumb to adhere to is that your mortgage payment should be close to 30 percent of your net monthly income.
Step 2 – Communicate with a real estate agent in San Jose
This is where D&F Properties can help.
I'd like to book a time to get together with you and speak with you regarding why you want to buy a home and get an idea of your upcoming plans.
We'll talk about everything from neighborhoods, school districts in the San Jose area, the mortgage and housing industries, to any other economic factors that could affect your buying decision today or in the future.
In addition, I'll assist you with getting started on your loan.
There are some excellent mortgage professionals in San Jose, and I partner with a lot of them, so you'll be 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 – Start looking
After our initial meeting, I'll start finding houses on the market that are great for you.
I'll preview many of the homes and reject the bad ones, and then we'll schedule appointments to tour the homes whenever it's most convenient for you.
As we view the houses, I'll point out good features, as well as negative ones. And I'll ask you to tell us about things you like and don't like.
It's pretty common for buyers to amend their must-have list as we view homes and some things become more important than others.
If that's the situation, I'll go back through all the listings one more time and narrow it down to the house you've been wishing for.
Step 4 – Get a feel for the housing market
My awareness of the San Jose housing market is an essential asset in your house search. I am informed of all the neighborhoods and school districts, and I will communicate some areas are "hot" and require immediate action and some that are "cold" and allow for thoughtful analysis.
When we view homes, I'll make sure to communicate if the list price has room for negotiation or if I believe the house is "priced to sell."
Be careful and make sure you ask lots of questions, as any REALTOR® will convince you they know the home market.
If things don't add up, contact me at 408-270-9776 or e-mail me at ddefaria@pacbell.net, and I'd be glad to answer your questions. My market knowledge will help you stay a step ahead through the entire deal.
Step 5 – Find the home you've been waiting for
I'm sure we'll find the home of your dreams in San Jose, and when that happens, I'll meticulously create your purchase offer. The offer will be tailored keeping your needs in mind. Whenever necessary, I never forget to make contracts contingent upon items like your ability to secure financing and the results of the home inspection.
When we submit your offer, most likely you'll need to submit "earnest money." This is a cash deposit given to a home seller to secure the offer to purchase the property and is usually applied to the cost of closing. If your offer is accepted by the seller, we should close within 30 to 60 days afterward. This allows ample time for your mortgage financing.
Step 6 – Negotiate the deal
Most contracts don't close on the beginning offer – it's widely common to receive a counter offer. Don't let this intimidate you. We'll consider whether or not to accept the counter offer, propose our own counter offer, or refuse the seller's offer and move on.
How aggressively we negotiate the deal depends on market conditions.
In addition, we'll work within your financing budget. And at the end of the day, we'll compose a contract that works well 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've been pre-approved, this shouldn't take much time at all. But you'll want to stay in close contact with your lender.
And I'll look after all the property information your lender needs to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) outlining closing costs from your mortgage lender within three days of receiving your application.
The estimate is based on the loan amount. RESPA requirements dictate that it has to contain all closing costs and be within a narrow range of accuracy, and I'll study the estimate and let you know if it all looks permissible.
Then we'll close on your home. This will probably take place at a title company or escrow office and will most often be a smooth and comfortable occurrence.
Step 9 – Move in
Success! Now you can move into your new house. Enjoy it. And if you need anything, make sure you call me at 408-270-9776 or send me an e-mail.
