For most people, buying a home can be a stressful event. However, with some up-front planning, it isn't very hard.
I like to furnish buyers with an overview of the entire deal so they know exactly what they can expect.
These are my nine steps to purchasing a home.
Step 1 – Get ready to purchase a home
There are a lot of things you'll want to consider before you start looking for a home.
When you start your search, you'll want to create a check list of must-haves, get an idea of what school districts and neighborhoods you'd like to live in, and start planning around your budget.
A good rule to adhere to is that your mortgage payment should be less than or around a third of your net monthly income.
Step 2 – Communicate with a real estate agent in Santa Barbara
This is where I can help.
I'd like to book a time to get together with you and speak with you regarding your real estate needs and get an idea of your upcoming plans.
We'll discuss neighborhoods, school districts in the Santa Barbara area, the mortgage industry, and any additional economic factors that may potentially affect your buying decision today or in the future.
In addition, I'll assist you in getting started on your loan.
I work with some of Santa Barbara's best mortgage professionals, so you're in great hands.
They'll help you decide which kind of loan is best for you, as well as help you get approved.
Step 3 – Begin house-hunting
Following our initial meeting, I'll begin searching for available homes on the market that are great for you.
I'll get a sneak peek of most of the houses and ignore the duds, and then we'll set up appointments to view the homes when it's convenient for you.
When we tour the homes, I'll call attention to good features, as well as negative ones. And I'll ask you to talk about things you like and dislike.
It's common for buyers to amend their list of must-haves as we view homes and some features become more crucial than others.
If that happens, I'll look through all the listings once more and narrow it down to the house of your dreams.
Step 4 – Get a feel for the market
Your agent's knowledge of the Santa Barbara market is an imperative agent in your house search. And I assure you I'm acquainted with all the neighborhoods and schools, and I will let you know some districts are "hot" and demand immediate action and the ones that are "cool" and allow for thoughtful examination.
As we view homes, I'll be sure to tell you when the seller's asking price has room for bargaining and when I think the home is "priced to sell."
When working with an agent, trust your instincts and make sure you ask plenty of questions, as any REALTOR® in Santa Barbara will claim to understand the market.
If it appears they don't know everything, just call me at 805-899-1100 or e-mail me at Kevin@GTprop.com, and I'll be glad to answer any questions you have. My knowledge of the market will help you stay a step above the rest throughout the entire process.
Step 5 – Find your dream home
I'm certain we'll find the house of your dreams in Santa Barbara. When that happens, I'll meticulously develop your purchase offer. The offer will be tailored exactly to your needs, including a lot of contingencies, such as getting financing, finishing the inspection, and a clear title.
Upon sending in your offer, you'll want to present "earnest money." This is a cash deposit given to the seller to secure an offer to buy the property and is most often applied to the closing costs. If your offer is accepted by the seller, we should close on the property within 30 to 60 days afterward. This allows necessary time for your mortgage financing.
Step 6 – Negotiate
Most contracts don't close on the beginning offer. It's pretty common to receive a counter offer. But don't let it alarm you. We'll talk over whether or not to accept the counter offer, submit our own counter offer, or refuse the seller's offer and go on.
Market conditions determine how aggressively we negotiate the deal.
In addition, we'll work within your financing limits. And at the end of the day, we'll create a deal that is best for you.
Step 7 – Obtain financing
After the contract is complete, you'll start working with your mortgage lender to close the loan.
This shouldn't take much time at all if you're pre-qualified, but you need to stay in close contact with your mortgage lender.
And I'll sort out all the property information your mortgage lender will need to close the loan.
Step 8 – Close the deal
Your lender will provide you with a Good Faith Estimate (GFE) of your closing costs within three days of accepting your loan application. You'll get a Good Faith Estimate (GFE) of closing costs from your mortgage lender within three days of accepting your application.
This estimate is formed from the loan amount, and RESPA requirements require that it has to involve all closing costs and be within a tight range of accuracy. I'll review the estimate and let you know if everything looks permissible.
Then it's time to close on your house. This will most often occur at a title company or escrow office and will probably be a smooth and easygoing event.
Step 9 – Move in
You made it! Now you can move into your new house. Enjoy it. And if you have any questions, make sure you call me at 805-899-1100 or send me an e-mail.
