The 9 Steps to Home Ownership

Next, we'll find time to meet so I can hear the reasons you want to buy a house and your plans for the future.  I'll have more questions for you to help me better understand your underlying needs.  Sometimes I even manage to ask about things you haven't thought about yet...but are still important to the process to finding the right home.  

We'll talk about towns, neighborhoods, schools, your commute, economic factors liable to affect the market today and tomorrow, as well as how you would like your house and neighborhood to grow with you.  We'll also talk about styles of homes you prefer, square footage needs, acreage, traffic, proximity to shopping, character of the towns and more.  All intended to help determine what will be right for you.

At this time, I will also get a sense of your financial needs so I can refer you to the appropriate financial expert for your situation.  They will help you get pre-qualified for a mortgage loan. Pre-qualification is a written statement from a loan officer indicating his or her opinion that you will be approved for a mortgage loan up to a certain amount.  The fact that you are pre-qualified will help us when we are negotiating the deal (although at that time we'll ask for a new pre-qual letter that identifies the buying address but not how much you can afford).

Our first step is to figure out the right town and setting for you.  Although you might just love pictures of a particular house, if it is not in the right location...that's the one thing we can't reasonably change.  If we focus on a town first and then look for the right house within that town, we can concentrate our energies and be ready when the right one comes along.

I'll give you a map of the towns you're considering so you can find your way easily.  It is also a good idea to pick up the local town paper, visit the town hall (or website) and even hang out in a local donut shop to get a sense of what the residents are like.

I also have a copy of Connecticut magazine's town comparisons from 2006 ranking them on many dimensions (e.g., population, schools, recreation, crime, etc.).  Hopefully, an updated version will come out soon.  There are websites that you may find helpful as well like those that compare towns based on Connecticut Mastery Test (CMT) scores where the tests are taken in school at several different grade levels.

Once you decide on your #1 town choice, I'll search all my resources for houses on the market that fit your criteria.  And ideally, you'll have marked the areas of the most interest on the map.  If you have email, I'll offer to send them to you for your input and then we can schedule appointments to tour the houses at times convenient.  General rule of thumb is to look at no more than 4 in a day so I'll often check them out beforehand to make sure we make the most of your time.  Sometimes I'll suggest you "drive by" some before setting up appointments.  (Usually if a house doesn't appeal to you when driving by, it is unlikely to win you over once you go inside.)

As we tour houses, I'll be listening carefully to your reactions.  What do you like best about it?  Are the things you don't like easily fixed (maybe by rearranging furniture or with fresh paint)?  Sometimes you won't be able to point to any specifics, but it just doesn't work for you and that's okay.  Just let me know and we'll move on.  Most often the seller is not there so it is easy to cut the tour short.  That'll give us extra time to spend in a home you love...so you can see if you can imagine yourself actually living there.  And that's the question you want to keep in the back of your mind throughout touring -- can I see myself living here?

As we're looking at houses, we'll probably amend your "wish list."  Some things will become more important and other less so.  With this new information, I'll refine our search criteria to narrow in on the house of your dreams.

As we tour houses, I'll let you know when the asking price should have negotiating room and when the house is "priced to sell" (based on my own market analysis of the house).  In other words, I'll let you know how it is priced against its competition in the market.  My unique market knowledge will keep you a step ahead of the "house hunting competition."

In a "seller's market," it is not unusual to see multiple offers on a property, full-price offers and even above-price offers.  On the flip side, during a "buyer's market" there are more houses for sale than buyers.  This gives us more negotiating room as houses are taking longer to sell.  It all depends on the market saturation for the kind of home you want.

I'm confident we'll find your dream house. When we do, we'll work together to write a purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.).  Generally speaking, the less complicated the offer is, the easier it is to get the deal together.  Remember, there's quite a lot more to it than just the purchase price.

The offer is normally presented with "earnest money."  This is a cash deposit made to a home seller to secure an offer to buy the property.  The amount is applied to closing costs.  If the seller accepts the offer, the check is usually deposited into the listing agency's escrow account.  Generally closing is held 30 to 60 days from the offer date (generally dependent on the turn around time of your mortgage financing and the seller's timing needs).

Market conditions will play a role in how aggressively we negotiate the deal.  We will also work within your limits.  Emotions can lead to buyer's remorse.  It is best to set limits prior to negotiating an offer and stick to these limits.

When we do have an accepted offer, I'll highlight each of the due dates for you...but don't wait!  You'll want to get through each contingency as quickly as possible for a couple reasons:  1) in case something takes a little longer than we anticipate and 2) if for some reason it isn't going to work out, the sooner we know that and can move on the easier it is for everyone.

During the closing period, you will be working with your mortgage lender to close the loan.  Because you pre-qualified for the loan before starting your home search, you will be that much closer to the end.  I'll gather some of the necessary property information your lender will need to close the loan.  He/she will obtain the remainder for you (e.g., an appraisal, etc.) and get the necessary information to your attorney.

You will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender.  The estimate is based on the loan officer's past experience and may not include all the closing costs.  Be sure to ask your loan officer to review the "Good Faith Estimate" with you and that you understand it so you can plan ahead accordingly.

About a week before the closing, we'll want a list from the seller's of things that'll help make for a smooth move (e.g., utilities switchover, when's garbage pickup, etc.).  We'll also ask for the list of current service providers (e.g., oil delivery and furnace service, etc.)