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
We'd like to schedule a time to meet with you to discuss why you want to buy a house and your plans for the future. We'll talk about 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, we will also help you get pre-qualified for a mortgage loan. Pre-qualification is a written statement from a loan officer indicating his or her opinion that you will be approved for a mortgage loan up to a certain amount. The fact that you are pre-qualified will help us when we are negotiating your sale.
Step 3 - Begin the Hunt
After our initial meeting, we'll search all our resources for houses on the market that fit your criteria. We'll screen these houses to eliminate mismatches. Then, we'll schedule appointments for you to see the houses.
As we tour houses, we'll point out positive and negative features. We'll ask you to tell us what you like and what you don't like. You'll probably amend your "wish list" as you see a few houses, some things will become more important and others less important. With this new information, we'll refine our search criteria to narrow in on the house of your dreams.
Step 4 - Know the Market
Our knowledge of the local market is an essential factor in your house search. We'll let 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.
As we visit houses, we'll let you know when the asking price has negotiating room and when the house is "priced to sell". Our unique market knowledge will keep you a step ahead of the "house hunting competition".
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 gives us more negotiating room as houses are taking longer to sell.
Step 5 - Find Your Dream House
We're confident we'll find your dream house. When we do, we'll put together the purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable home inspection, closing date, clear title, etc.).
The offer is normally presented with "earnest money". Earnest money is to show your intentions to purchase the home. The check is generally made payable to the listing company, and will be deposited into their "escrow" account once your offer has been fully accepted and signed and agreed to by all parties. The amount is applied to your costs to buy at closing. If the seller accepts the offer, generally closing is held 30 to 45 days from the offer date. The actual closing date is determined by a number of factors, including the time needed to process your mortgage loan, Seller's plans and ability to move to a new home, your availability and plans to move.
Step 6 - Negotiate the Contract
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 offer. We will also work within your limits. Unless you have additional cash on hand, your top price will generally be determined by your mortgage prequalification you received from your lender.
Step 7 - Get a Loan
During the closing period, you will be working with your mortgage lender to close the loan. Since you pre-qualified for the loan before starting your home search, you will be that much closer to the end. We will work closely with you and your lender to ensure that all necessary documentation is provided. During this time, it is crucial that you DO NOT make any major purchases. Buying furniture, opening a new credit card, or buying a new car can cause your previously approved loan to be declined due to a change in your financial position.
Step 8 - Close the Contract
You will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. If you are working with one of our recommended lenders, the estimate should be a very close picture of what funds will be needed for closing. Our local lenders know the local market, and can give you a very close idea of what will be necessary for you to bring to the closing table. If you are using a lender from out of the area, proceed with diligence and caution, as we are not familiar with their lending practices, and cannot be assured of the accuracy of your loan estimate. Be sure to get all information in writing. The estimate is based on the loan officer's past experience and may not include all the closing costs. We will be glad to review the "Good Faith Estimate," answering questions and discussing any items with you and your lender which appear to be out of the ordinary.
Step 9 - Move In
Congratulations! It's time to move into your new house and make it your home. Even though buying is incredibly exciting, we never recommend moving in to your home prior to completing the closing. When you sign all your paperwork at the closing table, and the Seller signs the deed and hands you the keys, it is time to move in! Enjoy this exciting time. We'll give you a checklist to help you remember the numerous details that will make your moving day a pleasure. We'll provide you with a list of your utility companies in advance of the closing so you can be sure to contact all your utilities and have everything set for you when you move in.
Daley Real Estate 5730 Ogeechee Road Suite 160 Savannah, GA 31405
