STEP 1:

DEFINE YOUR NEEDS FOR A NEW HOME

The first step towards purchasing a new home will be to analyze your needs. Real estate professionals like Greg Gorman & David Burke can help you analyze your needs so that you will be able to get a clear picture of exactly what you want in your home and how it should function for you and your family.

Next, write down the main reasons why you are looking for a new home. For example, are you through with renting and decided to buy a home where you can begin building equity? Maybe you recently married or had a child and have outgrown your current home. Or, have just gotten a promotion, which requires you to relocate to a new area. All these factors will all have a bearing on how you go about finding a new home.

Second, work on a time line for buying your home. Depending on your reasons to buy, you should be able to come up with a guideline, which you can adjust at a later time. 

Lastly, you most likely have a pretty strong idea of what you would like your house to look like and what features it should have. It's important to share these ideas with your Realtor to avoid any ambiguity later in your home search. Make at least two lists. One list should describe your dream home and the other should list the "absolutely must have" features in order to buy. In a perfect world, your new home would have 100%; however, it is more likely that you will end up compromising prioritized items as you progress through the buying process. This is a natural and evolutionary process as you get clearer about what you want and what is available. Again, trust your Realtor to help you through each step of the way.

STEP 2:

MORTGAGE PRE-APPROVAL / PRE-QUALIFY

Before you begin looking for a home, you and your Realtor are going to need to know in what price range to look. There are two ways to go about this. You can get prequalified or preapproved for a mortgage. To shorten the process, we recommend going through with getting preapproved so when you find the perfect home, you can move quickly with a solid offer and a shorter closing window.

Either way, you will need to contact a mortgage company. There are key differences between getting prequalified and preapproved for a loan that you need. Getting a loan prequalification is a simple process. It takes into account very basic information regarding your financial status and gives you an amount for which you may qualify. Most lenders can get this done strictly on a verbal level or electronically over the Internet with basic financial information. The prequalified amount is based solely on the information and the accuracy of what you provide. In most area, prequalified buyers usually hold little value as compared to getting preapproved due to the fact the data given for prequalification is not thoroughly investigated and may therefore be unreliable. Where a buyer is actually pre-approved for a loan of a certain amount, he or she is only told that they might be approved for a certain amount.

 Getting pre-approval is a much more involved process. A lender will ask all pertinent information regarding your finance history and perform an extensive check on your current financial status. This will give you a specific amount that you will be able to borrow assuming no changes in your employment and financial once you apply for the loan. Being preapproved demonstrates to the seller that you have gone through an extensive credit check and there should be no unexpected obstacles to buying the home. You can see how being preapproved would be more attractive to a seller than just being prequalified.

STEP 3:

NEIGHBORHOOD INFORMATION

Now it's time to look at some houses! Not just yet. Although you have your list of needs and wants and you know how much you can can mortgage, step back for a moment and consider the larger picture. People don't just buy a house; they buy the lifestyle and amenities neighborhood is know for. Your want to make sure that if you found the perfect house but it was in a neighborhood that wasn't what you were look for, would you make an offer on it? Most likely the answer would be, "No." 

So, you will need to make another list of what type of neighborhood you want to live in. You will most likely want to consider things like how living in the neighborhood will affect your drive time to and from work, what amenities are offered (swimming pool, tennis courts, park, etc.), and, if you have children who are attending school or soon will be, what school district you will be in and how close the schools are. You may even want to make two lists just as you did with your home criteria.

Greg, David & The Team can help you consolidate the information from your list of needs and wants for your home, your preapproval, and your list of needs and wants for the neighborhood. From this, you can incorporate this information into a broad search profile, which will then be narrowed down to specific areas dictated by the market in which you will be looking. The Team's experience in local markets will be an invaluable resource during this step.

STEP 4:

HOME SEARCH

After all your pre-buying homework, you have a solid idea of what you can afford and what type of neighborhood you will want to live in. If you don't know much about the area that you are moving to, your Realtor will help you get familiarized with the neighborhoods that meet your criteria and can then narrow your search to particular homes matching the priorities on your list.

There are a few ways to go about finding homes, but the best is to allow your Realtor to keep you up-to-date on available properties that may meet your criteria. When your agent presents you with a property that interests you, he or she can arrange for you to tour the property when it is convenient for you. 

You can also access the internet or local publications highlighting homes and condos in the area. You can even drive through neighborhoods that you feel would meet your needs. Driving around looking for a home that is for sale is good because you can actually see the house, but it can also be very time consuming and very "hit or miss option."

STEP 5:

MAKING THE OFFER

Now that you have decided on the home you would like to buy, it's time to make an offer. To formulate what you should offer, review the recent sales in that neighborhood which are similar in size, quality and amenities. Also consult with your Realtor who will advise you on how to create an offer that will have the best chance of being accepted.  

Realtors like Greg Gorman & David Burke will ensure that you have everything down in written form... no verbal agreements. We recommend your offer be in a written contract that meets all the legal requirements according to local and national guidelines. Your agent will present the seller or seller's agent with a written offer detailing your offer and any contingencies. The contract should protect the best interests of all parties involved and should be comprehensive in nature. Your Realtor will help protect your financial position as the buyer by including any necessary contingencies, which would protect you if a particular requirement were not met because once the seller accepts it, it may be too late to make any changes.

The contract, though not limited to this list, should include the following:

• A legal description of the property
• The offering price
• The down payment
• Financing arrangements
• A list of fees and who will pay them
• Amount of the deposit and subsequent deposits
• Inspection rights and possible repair allowances
• The method of conveying the title and who will handle the closing
• A list of appliances and furnishings which will stay with the home
• The settlement date
• Any relevant contingencies

Remember that the legalities of this phase are very important. If you have any questions or concerns, they need to be addressed right away. After all, no one has ever said at their closing, "I wish I had asked fewer questions."

STEP 6:

NEGOTIATE THE OFFER

Once the offer is made, you and the seller will likely need to negotiate in order to reach a final agreement. When you are buying a house, keep in mind that almost everything is negotiable. This can give you a great deal of leverage in the buying process -- that is, if you have adequate information and you use it in an appropriate manner. Greg & The Team have the market knowledge and negotiating expertise necessary to make sure that your offer is accepted at the best price and terms possible for you.

Some of the things that you may have to negotiate are:

• The price
• Financing
• Closing costs
• Repairs that need to be done
• Appliances and fixtures
• Landscaping
• Painting
• Occupancy time frame

Successfully negotiating will mean the end result must make both you, the buyer, and the seller happy. Otherwise, negative feelings will persist throughout the remainder of the process and someone may walk away feeling that they were not treated fairly or make attempts to cancel the deal.

STEP 7:

HIRE THE PROFESSIONAL VENDORS (Attorney, Home Inspectors etc.)  

Once your offer is a valid sale, The Team will supervise the coordination of all necessary vendors and serve as your partner when working with each vendor. The Team will make sure that the vendors have access to the property so they can perform their procedures and oversee the execution of those procedures on your behalf. 

For example, the property will need a thorough inspection. Working with your lender, you will need to have an appraisal and a survey for the property. A property inspection, a foundation inspection, and an environmental inspection may also need to be completed to make sure that the property is up to the standards as set forth in the contract. If there are issues or inconsistencies discovered during inspections, it may delay or even nullify the contract depending on the contingencies set forth in the contract. 

Homeowner insurance, especially in Florida, is another very important item that will need to be taken care early. Your Realtor should recommend Insurance experts who will likely recommend you obtain insurance equal to the full replacement value of the property. Unless you have obtained an insurance binder on the property, the closing can not proceed. Having these procedures done in a timely manner is a must.

Greg, David & The Team's experience in this area will be invaluable in making sure that everything is completed on time and in a professional and legal manner.

STEP 8:

PRE-CLOSE PREPARATION

 Prior to closing, your attorney or escrow company will verify with you lender to make sure that all the necessary documents are being prepared, and that they are complete, accurate, and delivered as promised. Your agent will also review the closing documents to check for accuracy so that they will be ready for the closing date. 

At this point, you and your Realtor will be notified of the amount needed in certified funds to close the sale. Make sure that your payment is made out to the appropriate party. Checking each closing document will enable you to have a quick, easy closing.

STEP 9:

CLOSING THE PROPERTY  

"Closing" is a formal meeting in which most parties involved in the buying/selling process will attend, but attending the closing is not usually mandatory. The closing usually takes place at the title company's office or lawyer's office. The closing officer coordinates the document signing and the collection and disbursement of funds. A member of The Team will always be present at your closing to read the documents on your behalf, answer any questions, or help to resolve any last minute or unexpected details that may come up. 

Both the buyer and seller should bring the necessary documentation, such as identification, and be prepared to pay any related fees (closing costs). Certified bank funds are typically required, however, there may be more than one form of acceptable payment. Ask the closing officer which form of payment will be required and to whom it should be made out. If you are obtaining a mortgage, closing costs will generally equal to 2%-3% of the total loan value not including down payment . 

Sellers sometimes pay for a portion or all of the closing costs, depending on local customs and terms negotiated in the contract. Lenders often allow a credit from the seller to the buyer for the nonrecurring closing costs. However, they usually won't allow a credit that reduces the amount of the buyer's down payment or any of the buyer's recurring costs, such as expenses for fire insurance premiums, PMI, or property taxes.

STEP 10:

POST-CLOSING ACTIVITY 

Prior to taking possession of the property you will need to have your local services such as electricity, cable, phone, water and sewer services set up. Your agent can help you coordinate the set-up of these local services. Your agent will provide you with a list of contacts. 

Also, you should already be aware of the expenses that are typically associated with owning a home. Neighborhood Association fees, landscaping costs, and annual taxes should be budgeted for throughout the year.