For a lot of people, purchasing a home is a stressful event. But with a bit of planning ahead of time, it isn't that confusing.
So you'll understand exactly what to expect, I like to give my buyers an overview of the whole deal.
Below are my nine steps to purchasing a home.
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When you're ready to get started, simply contact me here or send e-mail to judybraund@kw.com. I'm happy to answer questions you have about this information.
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Step 1 – Get ready to purchase
There are many things you'll want to consider before beginning your home search.
It's likely that you'll want to make a check list of features you want to have, get a feel for what school districts you want to live in, and begin working on your budget.
Ensuring your mortgage payment is less than or close to a third of your monthly income is a good principle to go by.
Step 2 – Contact a real estate agent
This is where I can help.
I'd be more than happy to plan a time to meet with you and communicate with you regarding why you want to buy a home and get an idea of your plans for the future.
We'll talk about neighborhoods, school districts in the Madison area, the mortgage and housing industries, and any additional economic factors that could 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 Madison's best mortgage professionals, so you're in great hands.
They'll assist you in choosing which type of loan is best for you and help you get approved.
Step 3 – Begin your search
After our initial meeting, I'll start looking for houses on the market that are good for you.
I'll get a sneak peek of many of the homes and exclude the duds, and then we'll book appointments to view the homes whenever it's convenient for you.
When we view the houses, I'll call attention to positive features and negative ones. I'll even ask you to point out what things you like and dislike.
As a rule, buyers update their wish list as we view homes and some items become more important than others.
If such is the case, I'll look through the listings another time and narrow it down to the house you've been waiting for.
Step 4 – Get a feel for the housing market
An agent's knowledge of the Madison market is an imperative element in your home search. And I assure you I'm familiar with all the neighborhoods and schools, and I will communicate what neighborhoods are "hot" and warrant immediate action and some that are "cold" and allow for careful examination.
When we tour homes, I'll make sure to communicate if the seller's asking price has room for negotiation or if I believe the home is "priced to sell."
Every REALTOR® in Madison will convince you they know the housing market, but take note, and be sure to ask your agent plenty of questions.
If it appears they don't know everything, just call me at 608-661-7007 or e-mail me at judybraund@kw.com, and I'll be happy to answer any questions you have. My market knowledge will help you stay a step above the rest throughout the entire process.
Step 5 – Find the house of your dreams
I'm confident we'll find the house of your dreams in Madison. When that happens, I'll precisely develop your real estate purchase offer. The offer will be tailored exactly to your needs, including several contingencies, such as obtaining financing, carrying out the home inspection, and a clear title.
When presenting your offer, you'll likely want to submit "earnest money." This is a cash deposit submitted to the home seller to secure an offer to purchase the property, and it's typically applied to the cost of closing. If the seller accepts your offer, we should close on the property within 30 to 60 days afterward. This allows plenty of time for your mortgage financing.
Step 6 – Negotiate the deal
Most deals aren't closed on the beginning offer, and it's extremely common to receive a counter offer. But don't let it alarm you. We'll consider whether or not to accept the counter offer, submit our own counter offer, or decline the seller's offer and go on.
How aggressively we negotiate the contract depends on market circumstances.
In addition, we'll work within your financing budget. And when it's all said and done, we'll create a deal that is best for you.
Step 7 – Secure financing
After we sign the final contract, you'll begin working with your mortgage lender to close the loan.
If you're already pre-approved, this won't take very long at all. However, you should to stay in close contact with your mortgage lender.
And I'll manage all the property information your lender will need to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) of your closing costs from your lender within three days of receiving your loan application.
The estimate depends on the loan amount. RESPA requirements dictate that it has to involve all closing costs and fall within a precise range of accuracy, and I'll analyze the estimate and let you know if everything looks all right.
Then we'll close on your home. This will most likely happen at a title company or escrow office and will likely be a smooth and relaxing occurrence.
Step 9 – Move in
Congratulations! It's time to move into your new house. Enjoy it. And if you need anything or have any questions, be sure to call me at 608-661-7007 or send me an e-mail.