West Houston and Katy Texas Buying Process
Buying a home can be a mind boggling process. Surviving in today's real estate
world requires experience and training in such fields as real estate financing,
negotiations, and making sure the deal gets to the closing table - the very skills and expertise available from the WestHouston.com Realm Realtors Team!
The home buying process typically starts several months before any properties are actually looked at. It is necessary to look at everything that is available on the market.
Outlined
below are the 9 simple steps to the buying process in West Houston and Katy, Texas.
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Step 1: Make the Decision to Buy
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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 this 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.
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Step 2: Seek Professional Guidance
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This is an easy step. Just contact us! Our contact info is at the bottom of the page, call either one of us.
When you contact us, we will also recommend lenders that can 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. This document makes sure that we are not wasting our time looking at homes that are out of a price range that suits you.
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Step 3: Begin the search for a home... |
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After our initial meeting, we will search all our resources for houses on the market that fit your criteria. We will sift through some of these houses to eliminate the duds. Then we schedule our appointments to tour the houses at times convenient to you. Not only can we show you resale homes, but if you look at our site, you will notice we have a good deal of knowledge on the new home market as well.
As we tour houses, we will point out both the positive and negative features. We might ask you to tell us 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, we can refine our search criteria to narrow in on the house of your dreams.
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Step 4: Know the Market
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Our knowledge of the local market is an essential factor in the house search. We'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.
As we tour houses, we will let you know when the asking price has negotiating room and when the house is "priced to sell". Our combined 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. As of 2009, we are in a "buyer's market" that may last for a couple more years.
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Step 5: Making an Offer on Your Dream House |
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Both of us are confident we'll find your dream house. When we do, we can put together the purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable option periods, 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, then generally the closing is held around 30 days from the executed contract date (dependent on the turn around time of your mortgage financing). If you default on the contract, your earnest money is lost to the seller. As your buyer representatives, will make sure that this does not happen.
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Step 6: Negotiate the Contract |
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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.
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Step 7: Obtaining Loan Approval |
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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. I'll gather the necessary property information your lender will need to close the loan.
The closing typically occurs at the title company that was chosen in the contract. The Sales Associates are usually present for both buyer and seller. Bring all keys and garage door openers to the closing. Typical costs due at closing are title insurance, mortgage liens, mortgage satisfaction recording fee, realty transfer tax (rate fixed by sales price of property), adjustments, either a credit or charge for tax, water, sewer, home owners associations, etc., and real estate commission. This is not a definitive list. Please see your Escrow Officer for specific details on closing costs.
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Step 8: Going to Closing |
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You will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. These costs will be estimated for what you will be responsible for at closing. Before we go to closing, we will have a "Buyer Final Walkthrough" to make sure that the Seller did not remove anything from the property that was supposed to stay, as well as making sure everything is in good shape.
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Step 9: Moving into your new home! |
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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.
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