Buying a home is intimidating for most people. However, with a little up-front planning, it isn't that difficult. I like to supply buyers with an outline of the entire deal so they understand exactly what they can expect. These are my nine steps to buying a home.
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When you're ready to get started, you can contact me here or send e-mail to joe@joepadilla.com. I'm glad to address questions you have about this information. |
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Step 1 – Prepare to buy a home
There are plenty of things you need to take into account prior to commencing your home search. When you begin your search, you'll want to create a check list of items you need to have, get a plan of what neighborhoods and school districts you'd like to live in, and begin planning around your budget. Ensuring your mortgage payment is less than or close to a third of your net monthly income is a good rule of thumb to adhere to.
Step 2 – Speak with a real estate agent
This is where I come in. We can book a time to get together so we can talk about why you want to buy a home and get an idea of your plans for the future. We'll talk about the mortgage industry, other economic factors that could potentially affect your purchase today or in the future, as well as neighborhoods and schools in the Albuquerque area.
I can also assist you with getting started on your loan. There are some great mortgage professionals in Albuquerque, and I partner with a lot of them, so you're in great hands. They can help you figure out which kind of loan is best for you, as well as help you get qualified.
Step 3 – Begin looking
After our initial meeting, I'll begin finding homes on the market that are a great fit for you. I'll get a sneak peek of many of the houses and ignore the duds, and then we'll book appointments to view the homes whenever it's convenient for you.
As we view the houses, I'll point out positive features, as well as negative ones. I'll also ask you what things you like and don't like. It's common for buyers to update their must-have list as we view houses and some features become far more crucial than others. If that's the case, I'll go back through the listings once more and trim it down to the house you've been waiting for.
Step 4 – Understand the market
My knowledge of the Albuquerque market is a crucial benefit in your house search. I'm conscious of all the neighborhoods and school districts, and I will let you know which districts are "hot" and call for prompt action and the ones that are "cool" and allow for cautiousness.
As we tour homes, I'll make sure to communicate when the asking price has room for negotiation and when I trust the house is "priced to sell." When working with an agent, trust your instincts and make sure you ask a lot of questions. Any real estate agent in Albuquerque will tell you they understand the housing market. If things don't add up, contact me at 505-259-6004 or e-mail me at joe@joepadilla.com, and I'd be happy to answer any questions you may have. My knowledge of the market will keep you a step ahead throughout the entire process.
Step 5 – Find the house of your dreams
I know we'll find your dream home in Albuquerque. When we do, I'll precisely create your home purchase offer. The offer will be tailored to suit your needs, including a lot of contingencies, such as obtaining financing, completing the home inspection, and a clean title.
When we send in your offer, you'll want to present "earnest money." This is a cash deposit submitted to a seller to secure an offer to buy the property, and it's most often applied to the closing costs. If the offer is accepted, we should close on the home within 30 to 60 days after. This allows ample time for your mortgage financing.
Step 6 – Negotiate the deal
A lot of contracts don't close on the beginning offer. It's really common to receive a counter offer. Don't let it alarm you. We'll discuss whether or not to agree to the counter offer, propose our own counter offer, or decline the seller's offer and go on.
Market conditions will play a part in how aggressively we negotiate the deal. We'll also work within your budget. And at the end of the day, we'll compose a contract that works well for you.
Step 7 – Secure your loan
Upon completing the contract, you'll begin working with your mortgage lender to close the loan. It won't take long at all if you've been pre-approved, but you need to keep in close contact with your mortgage lender. And I'll care for all the property information your lender needs to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) outlining closing costs from your lender within three days of accepting your application. The estimate is formed from the loan amount, and RESPA requirements order that it has to contain all closing costs and be within a strict range of accuracy. I'll examine the estimate and let you know if everything looks all right.
Then it's time to close on your home. This will likely occur at a title company or escrow office and will most often be a smooth and comfortable event.
Step 9 – Move in
Success! It's time to move into your new house. Enjoy it. And if you have any questions, simply contact me at 505-259-6004 or send me an e-mail.
