Purchasing a home is a stressful event for most people, but it's not that difficult with some planning ahead of time.
So you understand exactly what to expect, I like to give my buyers a road map of the entire deal.
Here are my nine steps to purchasing a home.
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If you have questions about this information or if you're ready to get started, you can contact me here or e-mail me at matt@clarkforkrealty.com.
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Step 1 – Get ready to purchase
There are several things you need to contemplate before you look for a home.
When you start your search, you'll want to create a checklist of features you want, get a feel for what school districts you'd like to live in, and begin planning around your budget.
A good rule to go by is that your mortgage payment should be around 1/3 of your net monthly income.
Step 2 – Get with a real estate agent
This is where I come in.
We can book a time to get together so we can talk about your real estate needs and get an idea of your upcoming plans.
We'll discuss neighborhoods, schools in the Missoula area, the mortgage and housing industries, and any other economic factors that could potentially affect your purchase today or in the future.
In addition, I'll help you start the loan process.
I work with some of the best mortgage professionals in Missoula, so you can rest assured that you're in great hands.
They can assist you in determining which kind of loan is best for you and help you get qualified.
Step 3 – Begin looking for a house
After our first meeting, I'll start finding houses on the market that suit your needs.
I'll get a sneak peek of most of the houses and eliminate the duds, and then we'll schedule appointments to tour the houses whenever it's most convenient for you.
As we tour the houses, I'll identify positive features, as well as bad ones. I'll even ask you about things you like and dislike.
Generally, buyers update their wish list as we view houses and some things become more substantial than others.
If that's the situation, I'll look through all the listings one more time and narrow it down to the home you've been waiting for.
Step 4 – Get a grasp of the housing market
An agent's knowledge of the Missoula home market is a leading agent in your house search. And I can assure you I'm conscious of all the neighborhoods and schools, and I will communicate certain areas are "hot" and demand immediate action and the ones that are "cool" and allow for thoughtful consideration.
When we tour houses, I'll let you know if the seller's asking price has room for bargaining or if I believe the house is "priced to sell."
When working with an agent, trust your instincts and be sure to ask plenty of questions. Every real estate agent will claim to comprehend the home market.
If things don't add up, just call me at (406) 728-2621 or e-mail me at matt@clarkforkrealty.com, and I'll be more than happy to answer any questions you may have. My market knowledge will keep you a step ahead throughout the entire deal.
Step 5 – Find the house you've been looking for
I'm certain we'll find your dream home in the Missoula area, and when we do, I'll carefully create your real estate purchase offer. The offer will be made keeping your needs in mind. Whenever necessary, I never forget to make contracts contingent upon items like obtaining financing and the results of the home inspection.
When submitting your offer, you'll need to present "earnest money." This is a cash deposit made to a home seller to secure the offer to purchase the property. The amount is typically applied to the closing costs. If the seller accepts your offer, we should close on the property within 30 to 60 days afterward. This allows necessary time for your mortgage financing.
Step 6 – Negotiate
Unfortunately most contracts aren't closed on the first offer, and it's pretty common to receive a counter offer. Don't let this alarm you. We'll discuss whether or not to consent to 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 the state of the market.
In addition, we'll work within your financing constraints. And at the end of the day, we'll put together a contract that works well for you.
Step 7 – Obtain a loan
Once the deal is finished, you'll start working with your lender to close the loan.
If you're already pre-approved, it shouldn't be a long process at all, but you should to stay in close contact with your mortgage lender.
And I'll manage all the property information your mortgage lender needs to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) detailing closing costs from your mortgage lender within three days of receiving your loan application.
The estimate rests on the loan amount, and RESPA requirements mandate that it has to involve all closing costs and fall within a narrow range of accuracy. I'll analyze the estimate and let you know if it all looks permissible.
Then it's time to close on your home. This will likely occur at a title company or escrow office and should be a smooth and hassle-free occasion.
Step 9 – Move in
Congratulations! Now you can move into your new house. Enjoy it. And if you have any questions, just contact me at (406) 728-2621 or send me an e-mail.
