Buying a Home – Tips and Steps

Whether you are buying a luxury custom home in Scottsdale, a high-rise loft in Phoenix, or a home in Chandler, when you are just starting to consider purchasing a home, here are some tips to help you get an idea as to what you can get qualified for, what you can afford, and how to go about looking for a home. I wrote this up for a client this past week and thought I would share it here as it can be useful for many home buyers out there.

Understand What You Can Afford

Talk to a mortgage professional. Understand what the different loan types are and what probably will work best for you. Find out what you have to do to be approved for a loan and if there is anything you can do to improve the terms of a mortgage further or what you need to work on and have ready for later. Click Great Questions to Ask Your Mortgage Professional to see recommended questions I have put togther.
Once you have the answers you need from the mortgage professional, consider what the monthly cost is going to be for a home and estimate the payment you really want to afford. In other words, try to think about what payment you are actually comfortable having given your budget. How much you can borrow is one thing. How much you can spend monthly on a home and still enjoy the other aspects of your life is another.

Start the Home Search Process

I create a home search portal based on your requirements and desires for a home. We have an extensive talk based on the characteristics of a home you are looking for, location, drive times, and other information that helps me to understand what might work well for you.
Watch the home portal for properties and mark ones that are interesting to you. Also, mark ones that are not of interest at all as this helps me to understand more of what would be interesting to you. Buying a home is actually a process of elimination. People tend to see a lot of homes and then eliminate many from consideration until they find the right one.
Take time to drive around areas. Taking some of the homes you are wondering about and driving by the areas and communities can give you an idea as to where you are comfortable and not comfortable with, commute times, and allow you to eliminate properties from consideration.
Go out and see the favorites that you and I have come up with. I will educate you further on items about the homes to think about and the positives and negatives to each property. I will also be watching and listening to see and hear what you like and don’t like.

Write an Offer and Contract Negotiation

Once you find a home you like and you want to write an offer, we can do that easily. I will work up a pricing analysis at that point and walk you through the offer and my professional recommendations.

Contract Acceptance and Opening of Escrow

Escrow is opened through a third party intermediary – a title company – whose function is to ensure that all terms and conditions of the contract are met by both sides to get to a successful close of escrow.

During the Escrow Period

Once we have a contract in place and escrow is opened, then we move into a 10-day inspection period. This period allows the buyer to inspect the home and perform due diligence to determine the condition of the property and help you decide if this is the right home and if you want to proceed on the purchase without penalty.

The remaining part of escrow involves making sure lender financing comes together and any other items and issues get addressed. Scheduling utilities toward the end is another part of this process for the home buyer.

Close of Escrow

Once all terms and conditions have been met by both sides and on the specified date, monies transact and the new deed is recorded. In other words, you bought your new home!

Post Close of Escrow

I like to stay in touch and see if there is anything else I can help with and address any items that may come up to make sure your transition to the new home is as smooth as possible.

That’s a quick summary of the process and things to keep in mind. I just thought some might find it helpful.

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