With some planning ahead of time, purchasing a home isn't that complex, but the event can be stressful for a lot of people.
I like to furnish buyers with an overview of the entire deal so they'll know exactly what to expect.
These are my nine steps to purchasing a home.
Step 1 – Get ready to purchase a home
There are many things you should contemplate before starting your home search.
When you start your search, you'll want to make a list of features you need, get a feeling for what neighborhoods you'd like to live in, and start planning around your budget.
A good rule of thumb to adhere to is that your mortgage payment should be close to 1/3 of your monthly income.
Step 2 – Contact a real estate agent
This is where I come in.
We can schedule a time to meet so we can talk about why you want to buy a home and get an idea of your future plans.
We'll discuss neighborhoods, school districts in the Knoxville area, the mortgage and housing industries, and any other economic factors that could potentially affect your buying decision today or in the future.
I'll also help you get started on your loan.
Lands End Real Estate & Auction works with some of Knoxville's finest mortgage professionals, so you can rest assured that you're in great hands.
They'll help you decide which type of loan is best for you, as well as help you get qualified.
Step 3 – Begin your search
After we meet, I'll start finding houses on the market that are good for you.
I'll research most of the houses and ignore the bad ones, and then we'll set up appointments to tour the homes whenever it's convenient for you.
As we tour the houses, I'll call attention to positive features and bad ones. I'll also ask you to point out what things you like and don't like.
It's widely common for buyers to change their wish list as we view houses and some items become more essential than others.
If that's the situation, I'll go back through all the listings another time and trim it down to the home of your dreams.
Step 4 – Get a feel for the housing market
My awareness of the Knoxville market is a valuable advantage in your home search. I'm acquainted with all the neighborhoods and schools, and I can let you know which neighborhoods are "hot" and call for immediate action and some that are "cool" and allow for more analysis.
As we view homes, I'll be sure to tell you when the seller's list price has room for negotiation and also when I think the home is "priced to sell."
When working with an agent, be on guard and be sure to ask a lot of questions, as every real estate agent in Knoxville will claim to understand the housing market.
If it seems like they don't know everything, contact me at 865.673.3007 or e-mail me at hopeking@comcast.net, and I'll be happy to answer any questions you might have. My understanding of the market will help you stay a step above the rest through the entire deal.
Step 5 – Find the home of your dreams
I'm sure we'll find your dream home in the Knoxville area, and when that happens, I'll thoroughly create your purchase offer. The offer will be tailored exactly to your needs. Whenever necessary, I never forget to make contracts contingent upon items like obtaining financing and the results of the home inspection.
When we send in your offer, you'll need to present "earnest money." This is a cash deposit submitted to a home seller to secure the offer to purchase the property and is often put towards the closing costs. If the offer is accepted by the seller, we should close about 30 to 60 days after. This allows sufficient time for your mortgage financing.
Step 6 – Negotiate
Unfortunately most deals aren't closed on the first offer, and it's very common to receive a counter offer. But don't let this alarm you. We'll consider whether or not to agree to the counter offer, submit our own counter offer, or refuse the seller's offer and move on.
Market circumstances will play a vital role in how aggressively we negotiate the contract.
In addition, we'll work within your budget. And at the end of the day, we'll compose a deal that is best for you.
Step 7 – Get your loan
Upon completing the deal, you'll begin working with your mortgage lender to close the loan.
If you're already pre-approved, it won't take long at all. However, you need to keep in close contact with your lender.
And I'll deal with all the property information your mortgage lender will need to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) of closing costs from your mortgage lender within three days of accepting your loan application.
This estimate is formed from the loan amount, and RESPA requirements order that it has to involve all closing costs and fall within a strict range of accuracy. I'll examine the estimate and let you know if it all looks all right.
Then it's time to close on your home. This will probably happen at a title company or escrow office and is often a smooth and hassle-free event.
Step 9 – Move in
Success! Now you can move into your new house. Enjoy it. And if you need anything, simply call me at 865.673.3007 or send me an e-mail.
