With some planning ahead of time, buying a home isn't too complicated, but the event intimidates many people.
So you'll know exactly what to expect, I like to supply my buyers with an outline of the whole deal.
These are my nine steps to buying a home.
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If you have questions about this information or if you're ready to get started, just contact me here or e-mail me at info@investinknoxville.com.
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Step 1 – Prepare to purchase
Before you begin your home search, there are several things you should consider.
When you begin your search, you'll want to put together an outline of features you need, get an idea of what school districts and neighborhoods you'd like to live in, and start planning around your budget.
Ensuring your mortgage payment is less than 30 percent of your monthly income is a good guideline to adhere to.
Step 2 – Talk to a real estate agent
This is where I can help.
We'll set up a time to get together so we can talk about why you want to buy a home and get an idea of your future plans.
We'll discuss the mortgage and housing industries, other economic factors that may potentially affect your buying decision today or in the future, as well as neighborhoods and school districts in the Knoxville area.
I'll also assist you in getting started on your loan.
There are some great mortgage professionals in Knoxville, and I partner with a lot of them, so you'll be in great hands.
They will assist you in determining which kind of loan is best for you and help you get qualified.
Step 3 – Start your home search
Following our initial meeting, I'll start searching for available homes on the market that are a great fit for you.
I'll research many of the homes and throw out the bad ones, and then we'll book appointments to view the homes at a time that's convenient for you.
When we view the houses, I'll identify positive features, as well as negative ones. I'll even ask you to talk about things you like and dislike.
For the most part, buyers update their wish list as we view homes and some things become far more substantial than others.
If that happens, I'll search all the listings again and narrow it down to the home you've been dreaming about.
Step 4 – Understand the market
Your agent's understanding of the Knoxville housing market is an imperative agent in your house search. And I assure you I'm familiar with all the schools and neighborhoods, and I'll let you know some areas are "hot" and require immediate action and some that are "cool" and allow for more examination.
When we view houses, I'll make sure to communicate if the asking price has room for negotiation or if I believe the house is "priced to sell."
When working with an agent, be careful and be sure to ask a lot of questions. Any real estate agent will tell you they truly understand the home market.
If it seems like they don't know everything, call me at (865) 688-9988 or e-mail me at info@investinknoxville.com, and I'll be more than happy to answer any questions you might have. My market expertise will keep you a step ahead through the entire deal.
Step 5 – Find the home of your dreams
I'm confident we'll find the home of your dreams in the Knoxville area. When we do, I'll carefully create your purchase offer. The offer will be tailored keeping your needs in mind, including some contingencies. A few examples are getting financing, completing the inspection, and a clear title.
When submitting your offer, you'll want to present "earnest money." This is a cash deposit made to the seller to secure the offer to purchase the property. The amount is typically applied to the closing costs. If the offer is accepted, we should close on the home about 30 to 60 days after. This allows plenty of time for your mortgage financing.
Step 6 – Negotiate the deal
Unfortunately most deals don't close on the first offer – it's pretty common to receive a counter offer. Don't let this alarm you. We'll figure out whether or not to accept the counter offer, present our own counter offer, or refuse the seller's offer and move on.
Market circumstances determine how aggressively we negotiate the deal.
In addition, we'll work within your financing budget. And when it's all said and done, we'll compose a deal that works well for you.
Step 7 – Get your loan
Once the deal is signed, you'll begin working with your lender to close the loan.
If you're pre-qualified, it shouldn't take much time at all, but you'll want to stay in close contact with your mortgage lender.
And I'll sort out all the property information your mortgage lender needs to close the loan.
Step 8 – Close the deal
Your lender will furnish you with a Good Faith Estimate (GFE) of your closing costs within three days of getting your loan application. You'll get a Good Faith Estimate (GFE) detailing your closing costs from your lender within three days of getting your application.
The estimate rests on the loan amount. RESPA requirements require that it has to contain all closing costs and fall within a precise range of accuracy, and I'll analyze the estimate and let you know if everything looks good.
Then it's time to close on your house. This will most likely take place at a title company or escrow office and will most likely be a smooth and comfortable affair.
Step 9 – Move in
Congratulations! It's time to move into your new house. Enjoy it. And if you have any questions, be sure to contact me at (865) 688-9988 or send me an e-mail.