Step - 1 Make the Decision to Buy
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. Then determine how long you plan to live in the new house. Then ask yourself the question does buying 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 including property taxes and insurance should not exceed 1/3 of your net monthly income.

Step 2 - Seek Professional Guidance
Once you have made a decision to take the next step, a realtor can schedule a time to meet with you to review your plans to buy a house and your plans for the future. The realtor 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 this time, a realtor can also help you get pre-qualified for a mortgage loan. 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. The fact that you are pre-qualified will help us when we are negotiating the deal.

Step 3 - Begin the Hunt
After our initial meeting, a realtor should search all our resources for homes on the market that fit your criteria. We'll preview these homes to eliminate the duds. Then, a realtor should schedule appointments to tour the houses at times convenient to you.

Step 4 - Know the Market
A realtor's knowledge of the local market is an essential factor in the house search. A realtor lets you know when the market in a particular neighborhood is "hot" and requires immediate action or when the market is "cool" and allows for more thoughtful and reflective consideration. As we tour homes, a realtor lets you know when the asking price likely has negotiating room and when the house is "priced to sell". Our 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
A realtor should confident he/she will find your dream home. When he/she does, a realtor should 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 a home seller to secure an offer to buy the property. The amount is applied to closing costs. If the seller accepts the offer, generally closing is held 30 to 60 days from the offer date (generally dependent on the turn around time of your mortgage financing).

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.

Market conditions will play a role in how aggressively a realtorshould negotiate the deal. A realtor will also work within your limits. Emotions can lead to buyer's remorse. It is better to set limits prior to negotiating an offer and stick to these limits.

Step 7 - Get a Loan
During the closing period, 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. We'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 at the time 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. We will be glad to review the "Good Faith Estimate," answering questions and highlighting missing costs and estimates we believe to be low.

Step 9 - Move In
Congratulations! It's time to move into your new house and make it your home. Enjoy this exciting time. We'll give you a checklist to help you remember the numerous details that will make your moving day a pleasure.

Source: Staff Writer