Buying a home is intimidating for many people, but it isn't that confusing with some planning ahead of time.
I like to supply buyers with a road map of the entire deal so they'll understand exactly what to expect.
Below are my nine steps to buying a home.
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When you're ready to get started, just contact me here or send e-mail to terry@century21baja.com. I'm glad to answer questions you have about this information.
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Step 1 – Prepare to purchase
There are a lot of things you need to do before beginning your home search.
It's likely that you'll want to make a checklist of items you need to have, get a feeling for what neighborhoods and school districts you want to live in, and begin planning your budget.
Ensuring your mortgage payment is around a third of your net monthly income is a good guideline to adhere to.
Step 2 – Get in touch with a real estate agent
This is where CENTURY 21 Paradise Properties can help.
We'll plan a time to meet so we can talk about your real estate needs and get an idea of your upcoming plans.
We'll talk about everything from neighborhoods, school districts in the Cabo San Lucas area, the mortgage industry, to any other economic factors that may potentially affect your buying decision today or in the future.
In addition, I'll help you facilitate the loan process.
There are some excellent mortgage professionals in Cabo San Lucas, and I work with a lot of them, so you're in great hands.
They can help you determine which type of loan is best for you, as well as help you get approved.
Step 3 – Begin your search
After our first meeting, I'll begin looking for available houses on the market that are great for you.
I'll preview many of the homes and eliminate the duds, and then we'll book appointments to view the houses when it's convenient for you.
As we tour the homes, I'll identify good features and bad ones. I'll also ask you to tell us about things you like and dislike.
It's pretty common for buyers to change their wish list as we tour homes and some features become far more important than others.
If that happens, I'll look through the listings once again and narrow it down to the home of your dreams.
Step 4 – Understand the housing market
My understanding of the Cabo San Lucas home market is a crucial resource in your home search. I'm acquainted with all the schools and neighborhoods, and I can alert you to certain districts are "hot" and call for immediate action and some that are "cool" and allow for cautiousness.
When we view homes, I'll let you know when the asking price has room for negotiation and also when I think the house is "priced to sell."
When working with an agent, be careful and make sure you ask lots of questions. Every REALTOR® will claim to comprehend the market.
If it doesn't seem like they know everything, just call me at 310.691.5451 or e-mail me at terry@century21baja.com, and I'd be glad to answer any questions you might have. My knowledge of the market will keep you a step ahead throughout the entire deal.
Step 5 – Find the home you've been looking for
I know we'll find the home of your dreams in the Cabo San Lucas area. When we do, I'll meticulously develop your purchase offer. The offer will be tailored keeping your needs in mind, including a lot of contingencies, such as acquiring financing, finishing the inspection, and a clean title.
Upon presenting your purchase offer, you'll probably want to submit "earnest money." This is a cash deposit given to a seller to secure an offer to buy the property, and it's often put towards the closing costs. If the offer is accepted, we should close on the property about 30 to 60 days after. This allows enough time for your mortgage financing.
Step 6 – Negotiate
Unfortunately most deals aren't closed on the initial offer, and it's extremely common to receive a counter offer. But don't let this alarm you. We'll consider whether or not to consent to the counter offer, submit our own counter offer, or reject the seller's offer and move on.
The state of the market will play a part in how aggressively we negotiate the contract.
We'll also work within your financing constraints. And when it's all said and done, we'll put together a deal that is best for you.
Step 7 – Secure a loan
Once we sign the final sales contract, you'll begin working with your mortgage lender to close the loan.
If you've been pre-qualified, it won't take long at all, but you should to stay in close contact with your mortgage lender.
And I'll care for all the property information your mortgage lender needs to close the loan.
Step 8 – Close the deal
Your mortgage lender will provide you with a Good Faith Estimate (GFE) detailing closing costs within three days of receiving your loan application. You'll get a Good Faith Estimate (GFE) detailing your closing costs from your lender within three days of taking your application.
This estimate is based on the loan amount. RESPA requirements order that it has to contain all closing costs and be within a strict range of accuracy, and I'll review the estimate and let you know if everything looks adequate.
Then it's time to close on your home. This will likely happen at a title company or escrow office and will likely be a smooth and peaceful event.
Step 9 – Move in
You made it! Now you can move into your new house. Enjoy it. And if you need anything or have any questions, be sure to contact me at 310.691.5451 or send me an e-mail.
