With some planning ahead of time, buying a home isn't all that confusing, but the event is intimidating for a lot of people.
I like to provide buyers with a road map of the whole deal so they know exactly what to expect.
These are my nine steps to purchasing a home.
Step 1 – Get ready to purchase a home
There are a lot of things you need to take into account before you start looking for a home.
When you begin your search, you'll want to put together a checklist of features you need to have, get a feeling for what neighborhoods and school districts you'd like to live in, and begin planning your budget.
Keeping your mortgage payment less than or close to 1/3 of your monthly income is a good principle to go by.
Step 2 – Get with a real estate agent in Grand Forks
This is where I come in.
I'd be happy to schedule a time to meet with you and communicate with you regarding your real estate needs and get an idea of your plans for the future.
We'll discuss everything from neighborhoods, schools in the Grand Forks area, the mortgage and housing industries, to any other economic factors that could affect your buying decision today or in the future.
In addition, I'll help you begin the loan process.
I partner with some of Grand Forks's best mortgage professionals, so you're in great hands.
They'll assist you in deciding which kind of loan is best for you and help you get qualified.
Step 3 – Begin looking
After our first meeting, I'll begin finding houses on the market that are a good fit for you.
I'll research most of the houses and remove the bad ones, and then we'll book appointments to view the houses at a time that's convenient for you.
When we view houses, I'll identify positive features and negative ones. I'll even ask you to point out what things you like and don't like.
It's pretty common for buyers to update their list of must-haves as we tour homes and some items become more essential than others.
If such is the case, I'll go back through all the listings again and narrow it down to the house you've been waiting for.
Step 4 – Understand the market
Your agent's awareness of the Grand Forks home market is a crucial agent in your house search. And I can assure you I'm mindful of all the neighborhoods and school districts, and I can alert you to what districts are "hot" and demand prompt action and others that are "cool" and allow for thoughtful analysis.
As we tour homes, I'll be sure to tell you when the seller's asking price has room for negotiation and also when I trust the home is "priced to sell."
When working with an agent, be careful and make sure you ask lots of questions, as any real estate agent will convince you they know the market.
If things don't add up, contact me at (701) 356-5000 or e-mail me at msbunde@lindabunde.com, and I'd be more than happy to answer any questions you may have. My understanding of the market will keep you a step above the rest throughout the entire process.
Step 5 – Find the home you've been looking for
I'm sure we'll find your dream home in Grand Forks. When that happens, I'll carefully create your home purchase offer. The offer will be tailored to suit your needs, including some contingencies, such as acquiring financing, completing the inspection, and a clean title.
When presenting your purchase offer, you'll probably want to present "earnest money." This is a cash deposit given to a home seller to secure an offer to purchase the property and is often put towards the cost of closing. If the seller accepts your offer, we should close on the home about 30 to 60 days afterward. This allows plenty of time for your mortgage financing.
Step 6 – Negotiate
A lot of contracts aren't closed on the initial offer – it's extremely common to receive a counter offer. Don't let it intimidate you. We'll talk about whether or not to consent to the counter offer, propose our own counter offer, or reject the seller's offer and move on.
How aggressively we negotiate the deal depends on market circumstances.
In addition, we'll work within your budget. And when it's all said and done, we'll compose a contract that works well for you.
Step 7 – Secure a loan
Upon finishing the deal, you'll begin working with your mortgage lender to close the loan.
If you've been pre-qualified, it shouldn't take very long at all, but you need to stay in close contact with your mortgage lender.
And I'll look after all the property information your lender needs to close the loan.
Step 8 – Close the deal
Your mortgage lender will send you a Good Faith Estimate (GFE) outlining closing costs within three days of taking your loan application. You'll get a Good Faith Estimate (GFE) outlining closing costs from your mortgage lender within three days of accepting your loan application.
This estimate depends on the loan amount, and RESPA requirements require that it has to include all closing costs and fall within a narrow range of accuracy. I'll study the estimate and let you know if it all looks all right.
Then it's time to close on your house. This will probably happen at a title company or escrow office and should be a smooth and relaxed event.
Step 9 – Move in
You made it! It's time to move into your new house. Enjoy it. And if you have any questions, be sure to contact me at (701) 356-5000 or send me an e-mail.
