The 9 Steps to Home Ownership

Step - 1 Make the Decision to Buy

It seems obvious, but it's good to note that the first step to buying a house is making the decision to buy. Consider the reasons you want a new house and write them down. Determine how long you want to live in the new house - does buying still make good financial sense? Can you afford a house that will meet your list of requirements? A good rule of thumb is your mortgage payment should not exceed 1/3 of your net monthly income.

Step 2 - Seek Professional Guidance

Select one of our real estate professionals and schedule a time to meet for a Buyer Counseling Session. This is the most important first step there is and if skipped, can cost you hundreds (or sometimes thousands) of dollars. This information packed session is a personalized overview of the process and what can go right or wrong for you!

Our Realty3 professional will discuss with you the reasons you want to buy and your plans for the future. We'll talk about your budget, neighborhoods, schools, economic factors liable to affect the market today and tomorrow, as well as how you would like your house and neighborhood to grow with you.

At this time, our Realty3 professional will also help you get pre-qualified for a mortgage loan from a reputable mortgage company and loan officer. Not all loan originators are good. We know which ones can get the job done efficiently, effectively and correctly the first time without wasting your time or money. Pre-qualification is merely a first step to getting a true loan pre-approval which is what we recommend. The fact that you are pre-qualified for a ball-park loan amount and type of loan program can help us get you started but pre-approaval will be necessary to help us when we are negotiating the deal.

Step 3 - Begin the Hunt

After our initial meeting, our Realty3 professional will search all our resources for property on the market that fit your criteria and provide you with that information for you can determine what property locations would be suitable for you. You will select what you want to see and then appointments will be scheduled at times convenient to you.

Step 4 - Know the Market

Our knowledge of the local market is an essential factor in property searches. When you work with us you know when the market in a particular neighborhood is "hot" and requires immediate action or when the market is "cool" and allows for thoughtful consideration.

In a "seller's market". It is not unusual to see multiple offers on a property, full-price offers and even above-price offers. On the flip side, during a "buyer's market" there are more houses for sale than buyers. This may give us more negotiating room as houses are taking longer to sell.

Step 5 - Find Your Dream House

When you find the property that is right for you, our Realty3 professional will create a purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.).

The offer is normally presented with "earnest money". This is a cash deposit made to a home seller to secure an offer to buy the property. The amount is applied to closing costs. If the seller accepts the offer, generally closing is around 60 days from the offer date (generally dependent on the turn around time of your mortgage financing) although it could be sooner or later than that.

Step 6 - Negotiate the Deal

It is not uncommon to receive a counter offer when the initial purchase offer is submitted. Don't let this discourage you. We will discuss the counter offer and decide whether or not to accept the counter offer, submit our own counter offer, or reject the counter offer and move on.

Market conditions will play a role in how aggressively we negotiate the deal. We will also work within your limits. Emotions can lead to buyer's remorse. It is better to set limits prior to negotiating an offer and stick to these limits.

Step 7 - Get a Loan

During the closing period, you will be working with your mortgage lender to close the loan. Since you pre-approved for the loan before starting your home search, you will be that much closer to the end.

Step 8 - Inspection Phase

This is a critical step in purchasing. You will receive an opportunity (when you select that contingency in your offer process) to have a 3rd party independent assessment of the property's physical, structural and mechanical condition. A licensed home inspector is selected and scheduled so that you can hear first hand what their professional opinion is. If there are issues, we will help you ask for necessary repairs. This is a complex portion of the transaction and will be throroughly reviewed with you in your Buyer Counseling Session.

Step 9 - Move In

Congratulations! It's time to move into your new house and make it your home. Enjoy this exciting time.