For many people, buying a home is a stressful event. However, with a bit of planning ahead of time, it isn't all that confusing. I like to provide buyers with an outline of the whole deal so they'll understand exactly what they can expect. These are my nine steps to purchasing a home.
 |
 |
 |
If you have any questions regarding any of this information or if you're prepared to get started, just contact me here or e-mail me at mike@mikehostetler.biz. |
|
|
|
|
Step 1 – Prepare to purchase
There are several things you should contemplate prior to commencing your home search. When you begin your search, you'll want to create a check list of features you want, get a plan of what school districts and neighborhoods you want to live in, and start planning around your budget. A good rule of thumb to follow is that your mortgage payment should be close to 30 percent of your monthly income.
Step 2 – Contact a real estate agent in Fort Wayne
That's where I can help. We'll plan a time to meet so we can talk about why you want to buy a home and get an idea of your plans for the future. We'll talk about neighborhoods, schools in the Fort Wayne area, the mortgage and housing industries, and any other economic factors that could potentially affect your purchase today or in the future.
I can also assist you with getting started on your loan. There are some very good mortgage professionals in Fort Wayne, and I partner with a lot of them, so you can rest assured that you're in great hands. They'll help you decide which kind of loan is best for you, as well as help you get qualified.
Step 3 – Begin looking for a home
After our first meeting, I'll start finding homes on the market that suit your needs. I'll get a sneak peek of many of the houses and reject the bad ones, and then we'll set up appointments to view the homes when it's most convenient for you.
As we view the houses, I'll show you the good features, as well as negative ones. I'll also ask you to talk about things you like and don't like. It's pretty common for buyers to change their list of must-haves as we tour houses and some features become more essential than others. If such is the case, I'll search all the listings again and narrow it down to the home you've been dreaming about.
Step 4 – Get a feel for the housing market
My awareness of the Fort Wayne housing market is an essential resource in your house search. I'm familiar with all the school districts and neighborhoods, and I can communicate certain areas are "hot" and call for prompt action and some that are "cool" and allow for more analysis.
When we view houses, I'll be sure to tell you when the seller's list price has room for bargaining and when I know the house is "priced to sell." Any REALTOR® will convince you they know the market, but be on guard, and be sure to ask your agent plenty of questions. If things don't add up, contact me at 260-489-7095x176 or e-mail me at mike@mikehostetler.biz, and I'd be happy to answer any questions you have. My understanding of the market will keep you a step ahead throughout the entire process.
Step 5 – Find the house you've been waiting for
I'm sure we'll find your dream home in Fort Wayne. When we do, I'll thoroughly develop your home purchase offer. The offer will be tailored exactly to your needs, including a lot of contingencies. A few examples are obtaining financing, finishing the inspection, and a clear title.
Upon turning in your purchase offer, you'll need to present "earnest money." This is a cash deposit submitted to the seller to secure the offer to buy the property and is often applied to the closing costs. If the seller accepts the offer, we should close within 30 to 60 days afterward. This allows sufficient time for your mortgage financing.
Step 6 – Negotiate the deal
Most contracts aren't closed on the beginning offer – it's pretty common to receive a counter offer. But don't let this alarm you. We'll talk over whether or not to take the counter offer, present our own counter offer, or decline the seller's offer and move on.
How aggressively we negotiate the deal depends on market circumstances. We'll also work within your financing constraints. And when it's all said and done, we'll compose a deal that is best for you.
Step 7 – Get a loan
After the deal is finished, you'll start working with your lender to close the loan. It won't take long at all if you're pre-approved, but you'll want to keep in close contact with your lender. And I'll handle all the property information your lender needs to close the loan.
Step 8 – Close the deal
Your mortgage lender will furnish you with a Good Faith Estimate (GFE) outlining your closing costs within three days of getting your application. You'll get a Good Faith Estimate (GFE) of your closing costs from your lender within three days of receiving your application. The estimate rests on the loan amount. RESPA requirements order that it has to include all closing costs and fall within a strict range of accuracy, and I'll review the estimate and let you know if it all looks okay.
Then we'll close on your house. This will likely occur at a title company or escrow office and should be a smooth and relaxing affair.
Step 9 – Move in
Success! It's time to move into your new home. Enjoy it. And if you need anything or have any questions, just call me at 260-489-7095x176 or send me an e-mail.
