For a lot of people, purchasing a home can be an intimidating event. However, with a bit of up-front planning, it isn't that complex.
So you'll understand exactly what to expect, I like to give my buyers an overview of the whole deal.
Here are my nine steps to purchasing a home.
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When you're ready to get started, you can contact me here or send e-mail to tccohen@boulderco.com. I'm happy to answer any questions you have regarding this information.
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Step 1 – Prepare to purchase
There are plenty of things you should contemplate before starting your home search.
When you begin your search, you'll want to make a list of items you need, get a feeling for what neighborhoods you'd like to live in, and start planning your budget.
Ensuring your mortgage payment is around 1/3 of your net monthly income is a good rule of thumb to go by.
Step 2 – Communicate with a real estate agent in Boulder
This is where RE/MAX of Boulder, Inc. comes in.
I'd be happy to arrange a time to get together with you and speak with you regarding your real estate needs and get an idea of your future plans.
We'll discuss neighborhoods, schools in the Boulder 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 begin the loan process.
I partner with some of the best mortgage professionals in Boulder, so you'll be in great hands.
They will assist you in deciding which kind of loan is best for you and help you get qualified.
Step 3 – Start house hunting
After our initial meeting, I'll begin looking for houses on the market that are a great fit for you.
I'll get a sneak peek of most of the houses and eliminate the duds, and then we'll schedule appointments to view the homes when it's most convenient for you.
When we tour the houses, I'll call attention to positive features and negative ones. I'll also ask you about things you like and don't like.
It's widely common for buyers to revise their list of must-haves as we view homes and some items become more substantial than others.
If that's the case, I'll look through the listings one more time and narrow it down to the home you've been waiting for.
Step 4 – Get a grasp of the market
An agent's knowledge of the Boulder home market is an imperative component in your house search. And I can assure you I'm mindful of all the neighborhoods and schools, and I'll let you know some districts are "hot" and require prompt action and others that are "cold" and allow for careful consideration.
As we tour houses, I'll be sure to tell you when the seller's list price has room for bargaining and also when I think the home is "priced to sell."
When working with an agent, be mindful and be sure to ask a lot of questions, as every real estate agent in Boulder will tell you they understand the housing market.
If things don't add up, just call me at 303-441-5623 or e-mail me at tccohen@boulderco.com, and I'd be happy to answer your questions. My market knowledge will keep you a step above the rest throughout the entire process.
Step 5 – Find the house of your dreams
I'm confident we'll find your dream house in the Boulder area. When that happens, I'll meticulously develop your real estate purchase offer. The offer will be tailored keeping your needs in mind, including many contingencies. A few examples are getting financing, finishing the home inspection, and a clean title.
When we turn in your offer, you'll likely need to present "earnest money." This is a cash deposit given to a home seller to secure the offer to purchase the property. The amount is usually applied to the cost of closing. If the offer is accepted by the seller, we should close on the home within 30 to 60 days afterward. This allows enough time for your mortgage financing.
Step 6 – Negotiate
A lot of deals don't close on the first offer, and it's very common to receive a counter offer. But don't let it discourage you. We'll consider whether or not to consent to the counter offer, present our own counter offer, or decline the seller's offer and go on.
Market conditions will play a big part in how aggressively we negotiate the contract.
We'll also work within your budget. And at the end of the day, we'll assemble a deal that works well for you.
Step 7 – Obtain a loan
After the contract is complete, you'll begin working with your lender to close the loan.
If you're already pre-approved, this shouldn't take long at all. However, you need to keep in close contact with your lender.
And I'll take care of all the property information your lender needs to close the loan.
Step 8 – Close the deal
Your mortgage lender will furnish you with a Good Faith Estimate (GFE) outlining your closing costs within three days of accepting your application. You'll get a Good Faith Estimate (GFE) detailing your closing costs from your mortgage lender within three days of taking your application.
The estimate depends on the loan amount. RESPA requirements dictate that it has to involve all closing costs and be within a narrow range of accuracy, and I'll review the estimate and let you know if everything looks okay.
Then we'll close on your house. This will likely happen at a title company or escrow office and will probably be a smooth and hassle-free occurrence.
Step 9 – Move in
Success! Now you can move into your new house. Enjoy it. And if you need anything, make sure you call me at 303-441-5623 or send me an e-mail.