The 9 Steps to Home Ownership

The information contained in this website is for general information purposes only. This site is a duplication to Mike Morgans former website www.defective-homes.net. The information is provided by www.searchhutto.com and whilst we endeavour to keep the information up-to-date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of or in connection with the use of this website. Through this website you are able to link to other websites which are not under the control of www.searchhutto.com. We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.

Every effort is made to keep the website up and running smoothly. However, www.searchhutto.com takes no responsibility for and will not be liable for the website being temporarily unavailable due to technical issues beyond our control.

Step - 1 Make the Decision to Buy

It seems obvious, but it's good to note that the first step to buying a house is making the decision to buy. Consider the reasons you want a new house and write them down. Determine how long you want to live in the new house - does buying still make good financial sense? Can you afford a house that will meet your list of requirements? A good rule of thumb is your mortgage payment should not exceed 1/3 of your net monthly income.

Step 2 - Seek Professional Guidance

Schedule a time to meet with your agent so he/she can hear the reasons you want to buy a house and your plans for the future. You will talk about neighborhoods, schools, 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. Then you should 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 when you are negotiating the deal.

Step 3 - Begin the Hunt

After the initial meeting, your agent will search all resources for houses on the market that fit your criteria. The agent should preview these houses to eliminate the duds. Then, your agent will schedule appointments to tour the houses at times convenient to you. As you tour houses, the agent will point out positive features and negative features. The agent will ask you to tell her/him what you like and what you don't like. You'll probably amend your "wish list" as you tour houses, some things will become more important and others less important. With this new information, the agent will refine your search criteria to narrow in on the house of your dreams.

Step 4 - Know the Market

Your agent's knowledge of the local market is an essential factor in the house search. She/He will let you know when the market in a particular neighborhood is "hot" and requires immediate action or when the market is "cool" and allows for thoughtful consideration. As you tour houses, your agent will let you know when the asking price has negotiating room and when the house is "priced to sell". Your agent's 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 you more negotiating room as houses are taking longer to sell.

Step 5 - Find Your Dream House

When you find your dream house, your agent will put together the purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.). 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, generally closing is held 30 to 60 days from the offer date (generally dependent on the turn around time of your mortgage financing).

Step 6 - Negotiate the Deal

It is not uncommon to receive a counter offer when the initial purchase offer is submitted. Don't let this discourage you. Your agent will discuss the counter offer and decide whether or not to accept the counter offer, submit your own counter offer, or reject the counter offer and move on. Market conditions will play a role in how aggressively your agent negotiates the deal. Your agent will also work within your limits. Emotions can lead to buyer's remorse. It is better to set limits prior to negotiating an offer and stick to these limits.

Step 7 - Get a Loan

During the closing period, you will be working with your mortgage lender to close the loan. Since you pre-qualified for the loan before starting your home search, you will be that much closer to the end. Your agent will gather the necessary property information your lender will need to close the loan.

Step 8 - Close the Deal

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. Your agent will review the "Good Faith Estimate," answering questions and highlighting missing costs and estimates.

Step 9 - Move In

Congratulations! It's time to move into your new house and make it your home. Enjoy this exciting time. Your agent will give you a checklist to help you remember the numerous details that will make your moving day a pleasure.