Buying a home usually represents your single biggest investment – Read our Home Buyers Guide First so you know how to prepare.
The home buying process is one of the most exciting, and frequently stressful, experiences you’ll ever go through. This holds true whether you’ve bought many homes or you’re looking to buy your first, whether you’re in the market for a new primary residence, an investment property or that perfect vacation getaway. Click here to download the entire Buyer’s Guide. Today’s Phoenix area real estate market can offer more opportunities, yet can be filled with more risks than ever before. There are a multitude of factors to consider and decisions to make. When buying, it’s crucial to have all the available resources necessary to make a well-informed decision, together with the time required to make use of them. It’s important to enlist the help of a trusted real estate professional who’ll be able to provide expert guidance at each step of the buying process. Finding and purchasing a home includes the following steps, which we’ll examine in more detail throughout this booklet:
1.) Define your goals, research your options, make your plans
Given that buying a home is such a big step, it’s very important to educate and prepare yourself as much as possible. This means clearly determining the reasons you’re buying and what kind of home you’re looking for. Since buying and financing a home are so closely related, it also means examining your current financial situation and projecting how much you can afford. Once you’ve answered these questions, even tentatively, you’ll be in a better position to research housing and mortgage options, and create an action plan and timelines for moving forward. Although it is possible to do this yourself, you may benefit by consulting an experienced real estate professional right from the start.
2.) Contact a real estate professional
Buying real estate is a complex matter with many factors to consider since no two homes or transactions are alike. With all the unique opportunities and potential pitfalls of the current market, it’s more important than ever to contact a real estate professional once you’ve decided to buy. Our team at Orange Sky boutique real estate will guide you every step of the way from setting you up on a custom property search with a custom portal that lets you mark your favorite homes to the financing process to writing and negotiating the purchase contract. We have the local market knowledge, experience, and track record of getting our buyers to the closing table successfully. The Team at Orange Sky has years of experience and all of us grew up in the Valley of the Sun, so we can best direct you when searching for your home!
3.) Get pre-approved for a loan
We recommend that you get pre-approved for a loan before you start viewing homes with the serious intention of buying. The pre-approval process involves meeting with a lender and authorizing them to examine your current financial situation and credit history. On the basis of this examination, the lender may provide you with a document detailing the amount you can borrow to buy a home. Consider looking online to see what different lenders offer, or contacting your local bank or credit union.
The benefits of pre-approval include:
You’ll know what you are eligible to receive and be able to plan accordingly. As a qualified, motivated buyer you’ll be taken more seriously when you make an offer Lenders can tell you if you qualify for special programs that will help you afford a better home (particularly if you’re a first-time buyer). Real estate financing is available from many sources, and an experienced real estate professional will be able to suggest lenders with a history of offering excellent mortgage products and services.
4.) View homes and select THE ONE
Simply put, the key to the home search process is knowing what you’re looking for. Among other things, that means distinguishing between “must-haves” and “like-to-haves”. To help you to target your search and define your home preference priorities, this guide includes a Home Search Worksheet. The typical buyer searches for 12 weeks on their own and that 97% of buyers who used a real estate agent found they saved time and money when buying a home. There are many benefits to starting the search process at a real estate website like realtor.com®. You can view many homes and their details, take video tours and access neighborhood info. However, it’s also important to view homes in person. While the property details may seem similar online, homes can be very different in terms of layout, design, workmanship and other aspects. Ideally, you should view homes with the help of an experienced real estate professional who’ll notice things you might miss, provide expert analysis, and act as an impartial sounding board.
5.) Make an offer and negotiate with the seller
Once you’ve found the home you’d like to buy, it’s time to make an offer. Our team will guide you through the purchase contract from choosing the right price to the inclusion of clauses specifying various terms of purchase, such as the closing and possession dates, your deposit amount, and other conditions. In addition to drawing up the contract, our team of real estate agents will be happy to address all of your questions about the offer process.* Once you’ve written the offer, your real estate professional will present it to the seller and/or the seller’s representative. At that point, the process will vary somewhat depending on the market you’re in. Generally speaking, the seller can accept your offer, reject it, or counter it to initiate the negotiation process. Successive counter-offers, with deadlines for responding and meeting conditions, may be exchanged between you and the seller until a mutual pending agreement is reached or the negotiations breakdown. Negotiations involve many factors specifically relating to different market conditions, homes and sellers.
6.) Secure your financing
Once you have a pending agreement, it’s time to return to your chosen lender to finalize mortgage details in order to close the deal. This means finalizing your down payment, interest rate, regular payment schedule and all other financial conditions associated with the closing. As the saying goes, ‘let the buyer beware’. Unfortunately, too many buyers suffer negative consequences from not fully understanding their financing decisions. Thus, it’s crucial for you to work with people you trust. In this regard, a good real estate professional can become a true friend for life.For more information on the loan process, see – The Loan Process – Financing Your Home Purchase in our Home Buyers Guide. If you’ve efficiently taken care of everything connected with purchasing your new home, taking ownership should be a positive joy with no surprises and soon enough the keys to your new home will be in your hands.