The Buying Process - Part One

I was asked yesterday to explain the process of buying a home.  I thought I'd write it as simply as I could here, then personalize for the actual buyer.  I don't like to just hand out paperwork because it's rarely a fit for the circumstances.  Everyone is unique, everyone's process will therefore be different.  We also are blessed with a multitude of houses of varying ages, in varying areas.  Add mortgage issues to that and a simple see - like - buy process becomes quite complex.

Start here:  Why do you want to buy a house?  Figuring this out before you engage in the process will save you headaches and lost time.  You need to have a goal in mind - simple and direct - that you can pull out when you are standing in 10 degree weather in an unheated house.  "I am here because...."  For everyone it's different:  "I can't rent because I have pets whom I love dearly and the 5 huskies need a home."  "I want a place to help me save $$, not just give it to my landlord every month."  "I just got a job here, I am living in rental housing, and my 6 kids and wife started the trek across country..."  "My grandmother said I should buy a house and this will make her happy."  Whatever the foremost reason - decipher it now.

Go there:  How much of a house can you afford?  Even if it's cash, know what you want and can spend.  I want everyone who works with me and plans to finance to have gone through the pre-approval process for a mortgage.  Carol Alger from Paragon Home Loans has been with me from the beginning of my real estate career.  I say "with me" - I receive nothing except good service and a quick response time for my clients from her.  She will look at your credit rating, income, etc. and let you know what type of mortgage to use and how much you can afford. It's like going to the bank and getting money in hand when you go shopping.  CarolAlger@ParagonHomeLoans.com.  (Of course you can choose your own lender!)
                With cash you will need proof of funds - something from a bank or financial adviser.  You may know you can do it, but the agent and attorneys on the listing side want proof.  In writing.  At the time of the offer.  Get it before you shop.

Shop:  Think of it as going to the mall....there are many places to buy things, but it's helpful to know what you want to buy.  Keep it simple, as with clothes - what size, what cost, what style.  This is early on, so see what's out there.  There may be a "must have" - room for those huskies, handicapped accessible, a certain school district.  Too many of those criteria limit your search.
          If there were a mall with many house stores it would be easier.  I send my clients from the MLS (multiple listing service) listings that fit their initial criteria.  Realtor.com is also available as a good source because it is up-to-date with availability.  When I send listings I see what is called "private remarks."  I can also see the history of the house and do further research.  I try not to limit choices, but give additional information.

Really shop:  Choose 6 or 7 possibilities and drive by them.  You can't really tell what's inside - don't pre-judge - but you can see the area.  Would you and the 5 huskies be comfortable there?  Can the kids walk to school safely (if that's important).  Then call, text or e-mail me (if you are working with me) these homes and let me look more carefully at them, most likely calling the listing agent too.  Make an appointment and see them!  More than five homes gets confusing, but in a space of about two-three hours you can see them all.

Repeat shopping:  It can take one trip out or several, or years(!) to find the right home.  I've always bought the first home I've seen and it's worked out in each case.  I knew what I wanted, it happened to be there, and I did it.  In 99% of all searches, it's not the first house you see that you buy.

Once you've settled on the home then the real work begins.  Stay tuned for another blog - Part Two!