FINDING YOUR DREAM HOME
BUYERS
PRE-QUALIFICATION
Schedule a meeting with a mortgage broker to determine the maximum affordable budget for buying a house.
PRE-APPROVAL
Understanding your financial boundaries is an essential initial step in the home buying process. However, sellers tend to view prospective buyers more favorably if they have undergone pre-approval. This step not only prevents disappointment by focusing your search within your budget but also demonstrates your seriousness to the seller. Pre-approval involves formally applying for a mortgage and receiving a written commitment from a lender. Typically, the associated costs are minimal, and many lenders allow payment upon loan closure.
NON-NEGOTIABLES vs. WANTS
Generate two lists: the first cataloging essential criteria, such as the required number of bedrooms suitable for your family size and the type of dwelling (e.g., ranch, multi-story). The second list should outline desirable amenities, like a pool or a home office, that are not imperative but would enhance your living experience. It is advisable for first-time homebuyers to acknowledge that obtaining all items on the wants list might be unrealistic, yet it serves as a guiding tool in your search for a suitable property.
PROFESSIONAL REPRESENTATION
Consider engaging a dedicated real estate agent to represent your interests as the buyer, rather than the seller.
THE HOME-BUYING PROCESS
MAKING YOUR DREAMS A REALITY
OUTLINING YOUR OBJECTIVE
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What motivates your decision to make a purchase?
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What price range are you contemplating?
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What is your intended timeline for relocation?
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What features are essential to you and which aspects are non-negotiable?
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What criteria are you seeking in a neighborhood?
Planning & Preparation
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Engage in a comprehensive discussion regarding objectives and procedures with your Realtor®.
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Secure a pre-approval letter to strengthen your purchasing position.
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Formalize an exclusive buyer-broker agreement with your Realtor®.
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Collaborate with your Realtor® to conduct thorough research on the desired neighborhood.
Understanding the Market
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Analyze active, pending, and sold transactions.
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Review contracts and associated timelines.
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Consider personal timing and seasonal factors.
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Evaluate market dynamics, focusing on the balance between supply and demand.
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Develop a Buyer Attraction Strategy.
FINDING YOUR HOME
Searching
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Collaborate with your Realtor® to scrutinize online listings
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Deliberate on diverse strategies for handling multiple offers as required
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Present offers and emphasize buyer strategies
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Engage in negotiations to enhance price and terms
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Evaluate and respond to offers or counteroffers
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GOING INTO ESCROW
The Process
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Inform escrow of acceptance and dispatch the fully executed contract.
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Transfer the initial deposit to escrow in accordance with the agreement terms.
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Advise the lender to initiate the loan process and request an appraisal.
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Reach out to the insurance agent to secure homeowner coverage.
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Furnish escrow with the necessary title information.
Inspections & Disclosures
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Arrange all necessary home inspections.
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Approve or negotiate repairs as per inspection findings.
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Review and approve all seller and state-mandated disclosures.
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Evaluate and approve the preliminary title report.
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Adhere to deadlines and eliminate contractual contingencies.
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Conduct a final walk-through before the close of escrow.
CLOSING
Welcome Home
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Review the closing statement from escrow
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Conduct a virtual meeting with the escrow agent to sign loan documents
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Coordinate the wire transfer for the down payment and closing costs
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Transfer utilities to the new location
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Attend the closing meeting, receive keys, and commemorate the occasion
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Initiate the move into the new property
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Complete a move-in checklist
Working Together Again
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Maintaining regular communication and keeping you updated
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Assisting with second homes and investment properties
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Offering resources and making introductions
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Seeking referrals, testimonials, and reviews
TO DO LIST
In a convenient location, keep handy the items that will assist you in maximizing your home search efforts. Such items may include:
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Prepare a file to file properties that your agent has shown to you, or create a board to be able to take a one look glance (print off pictures of what each home looks like).
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Use your phone when touring homes to have an instant memory on each individual property, especially if you are viewing multiple homes.
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Bring a paper and pen to each property to take notes as you search.
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Location: Look at potential property as if you are the seller. Would a prospective buyer find it attractive based on school district, crime rate, proximity to positive (shopping, parks, freeway access) and negative (abandoned properties, garbage dump, source of noise) features of the area?
VISUALIZE THE HOME AS YOURS
Does the architecture of the home fit your needs? Is there enough natural lighting?
BE OBJECTIVE
Knowing your financial boundaries is indeed the initial stride, yet sellers tend to value rational considerations over emotional ones. Instead of being swayed by sentiment when selecting a home, employ a logical approach. Assess whether the property aligns with your specific requirements. With a multitude of housing options available, it's advisable to refrain from hasty decisions that could lead to future regrets.
BE THOROUGH
Investing a few additional dollars wisely at present could lead to substantial savings in the future. It is crucial not to overlook fundamental steps such as:
Incorporating inspection and mortgage contingencies in your formal offer.
Arranging for a thorough property inspection conducted by a certified professional.
Scheduling a final walk-through within 24 hours before the closing.
Verifying that no unauthorized alterations have been made, ensuring that agreed-upon fixtures remain in place.
These precautions are essential to safeguard your interests during the property acquisition process.
The array of tasks mentioned can appear daunting. Engaging a professional to manage and oversee these intricacies is strongly advised. For further discussion on any of these topics, please feel free to contact me via email or directly by phone.
