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 based on your family size and lifestyle...singles can probably afford a higher percentage.
Step 2 - Seek Professional Guidance
I'd like to schedule a time to meet with you to hear the reasons 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 ReMax Unlimited, we have access to ALL the properties listed by any member of Metrolist as well as nearly all new home builder properties, foreclosures, short sales, FHA-VA and HUD properties, and most For Sale by Owners. This is a great place to start (you'll save on gas and your time as well!)
At this time, I can also refer you to 1 or 2 excellent mortgage brokers who can "pre-qualify" you for your loan. As with Realtors, there is a huge variety of quality and ethics of mortgage brokers, and selecting the right one can sometimes mean the difference between closing or having the transaction crash, costing you thousands of dollars. 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. Without being pre-qualified to buy, your negotiating opportunities are limited as sellers won't take you or your offer seriously.
Step 3 - Begin the Hunt
After our initial meeting, I'll search all my resources for houses on the market that fit your criteria. Then, I'll schedule appointments to tour the houses at times convenient to you. We can look at new home construction, existing re-sale homes, HUD and VA foreclosures, bank reposessions and if you'd like, fixer-uppers and investment properties.
As we tour houses, I may point out positive features and negative features. I'll ask you to tell me what you like and what you don't like. You'll probably amend your "wish list" as we tour houses, some things will become more important and others less important. With this new information, I'll refine our search criteria to narrow in on the house of your dreams. Be patient! It may take several trips out to find your perfect home!
Step 4 - Know the Market
My knowledge of the metro Denver CO market is an essential factor in the house search. I'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. I can help you with nearly all areas is metro Denver but if an area is out of my area of expertise, I'll refer you to another experienced agent who can better serve you.
As we tour houses, I'll let you know when data suggests the asking price has negotiating room and when the house is "priced to sell". My 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
I'm confident we'll find your dream house. When we do, I'll put together the 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 the listing brokers escrow account or Title Company to secure an offer to buy the property. The amount is applied to closing costs and/or your down payment. If the seller accepts the offer, generally closing is held 45 to 60 days from the offer date.
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. Remember though, until everyone signs "on the dotted line" that home you like can go to someone else, or conversely, you can recind the offer if you find a home you like better.
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. If you're feeling that malady, go back to your wish list and see how the home you've selected "stacks up".
Step 7 - Get a Loan
During the period between contract and closing, 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. I'll gather the necessary property information your lender will need to close the loan.
Step 8 - Close the Deal
You will receive a "Good Faith Estimate" of closing costs shortly after the loan application is submitted to the lender. The estimate is based on the loan officer's past experience and may not include all the closing costs. I will be glad to review the "Good Faith Estimate," answering questions and highlighting missing costs and estimates I believe to be low or closing costs I feel are not competitive.
Step 9 - Move In
Congratulations! It's time to move into your new house and make it your home. Enjoy this exciting time. I'll give you a checklist to help you remember the numerous details that will make your moving day a pleasure.
ReMax Unlimited @ Cherry Creek Reservoir 3300 S Parker Road Suite 100 Aurora, CO 80014
