It is important to follow all the steps in the correct order when considering purchasing a house. Inventory is currently tight, which means the market is good for sellers, and a little bit more difficult for buyers. In this market buyers have to be on top of their game when choosing a house; if they wait to make an offer, chances are the house will be gone and under contract with someone else.
The proper steps to purchasing a house are to meet with the lender that you are comfortable with. If you don't have one, speak to a Realtor first and they can direct you to a trustworthy lender. I caution you to stay away from searching online for lenders — it is much better to meet in person with a lender who is local to your market and is knowledgeable about your area. Online lenders can have higher fees that are often not easily spotted from their websites. A local lender can help you get the right loan program, the right rate and can answer any questions that you have. Quickly turn in all the paperwork your lender asks for so they can fully pre-approve you on the loan amount, and then all you have to do is find the property and you're ready to go.
Once you meet with your agent and complete your paperwork, it's time to go out and look for houses because you are fully prepared. Ideally, you should only look at the houses you would possibly purchase — there is no point in looking at homes that you know you won't like or are in areas in which you don’t want to live. Your goal is to streamline the process, look at five or six homes that you are comfortable with, and make a decision on those homes.
After you find a house you like, it’s time to make an offer. You have already decided that you're going to buy a house, so why wait and risk losing it to another buyer? Your agent should then do a market analysis to find a fair market value on the home, and then begin putting together an offer that is favorable for you. Remember that our market is good, so there is a possibility that you will compete with other offers. I would encourage you to go in with a strong offer and a reasonable earnest money amount. If you choose to ask for personal items, a home warranty, or closing costs, your asking price needs to be as close to list price as possible, typically. The seller may choose to not accept your initial offer and make a counter offer. This is still a rejection of your offer. At that time, another offer may come in and beat your offer. I encourage you to respond to any counter offers as quickly as possible and get signatures as soon as possible. There is no contract until all parties have signed the contract. This is extremely important and your agent should discuss this with you during the buyer consultation. You should be prepared at all times to make an offer, counter offer, and know exactly what you're willing to pay and concede on each property that you look at. If you are properly prepared the process will go smoother and less stressful.
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