STEP 1 - DEFINE NEEDS FOR YOUR NEW PROPERTY

Congratulations on your decision to purchase a new property! Your first step toward buying your new property will be to analyze your needs. Your real estate agent can help you determine exactly what you want your new property to look like and how it should function for you and your family.
 
First, you should write down why you are looking for a new property. For example, are you currently renting and would like to have a property where you can begin building equity? Maybe you recently married and have outgrown your current residence. Or, maybe you have just gotten a promotion, which requires you to move to a new city. These factors will all have a bearing on how you approach your property search. 

Second, establish a time frame for buying your property. Depending on your reasons for wanting a new property and the current state of the market in the area you are looking to buy, you should be able to come up with a rough guideline, which you can finalize at a later time.

Finally, you probably have a mental picture of what you would like your house to look like and the features it should have. It's very important to write these ideas down to avoid any ambiguity later in your property search. You should make at least two lists: one should be a list describing your dream property and the other should list the features of the property that are an absolute must have in order to buy it. In a perfect world, your new property would fulfill both lists 100 percent. It is more likely that you will end up blending the two lists into a schedule of prioritized items as you progress through the buying process. This is a natural, evolutionary process as you get clearer about what you want and what is available.

                                                        STEP 2 - MORTGAGE PRE-APPROVAL / PRE-QUALIFY

Now that you have your list of features you want in your new property, you are almost ready to start looking you need to know in what price range to look. There are two ways to go about this: prequalification or preapproval for a mortgage. Either way, you will need to contact a mortgage company.

There are some key differences between prequalification and preapproval for a loan that you need to be aware of. Loan prequalification is a simple process. It takes into account very basic information regarding your financial status and gives you an amount for which you may qualify. This can be done strictly on a verbal level or electronically over the Internet. The prequalified amount is based solely on the information you provide. In most markets, prequalified buyers usually hold little clout compared to preapproved buyers due to the fact that the information given during the prequalification process is not thoroughly investigated and therefore may be unreliable. While a preapproved buyer is actually approved for a loan of a certain amount, a prequalified buyer is only told that they might be approved for a certain amount.
 
Pre-approval is a much more involved process. The lender will take all pertinent information regarding your finances and perform an extensive check on your current financial status. This will ultimately give you the exact amount that you will be eligible for (depending on what type of loan you decide to go with). Being preapproved lets the seller know that you have gone through an extensive financial background check and there should be no unexpected obstacles to buying the home. You can see how being preapproved would be more attractive to a seller than just being prequalified.

                                                      STEP 3 - INVESTMENT AREA INFORMATION

Now that you have your list of needs and wants and you know how much you can afford to spend, it's time to step back for a moment and consider the larger picture. People don't just buy a property: they buy the area the property is in. Think about if you found the perfect property, but it was in an area that wasn't to your liking, would you make an offer on it? Probably not.

So, you will need to make another list of what type of area you want to invest in. You will most likely want to consider things like how being located in the area will affect your drive time to and from major destinations, what amenities are offered (swimming pool, tennis courts, parking, etc.), and, the demographics of the surrounding area. You may even want to make two lists, just as you did with your property criteria.

Your real estate agent can help you consolidate the information from your various lists and incorporate this information into a broad search profile. This can then be narrowed down to specific areas dictated by the market in which you will be looking. Your agent's experience in local markets will be an invaluable resource during this step.

                                                       STEP 4 - SEARCH PROPERTIES HERE

At this point you will have a good idea of what you can afford and the type of area you will want to invest in. Taking that information into consideration, you are ready to embark on your property search. If you don't know much about the city to which you are moving, you will most likely want to start your search by finding areas that meet your criteria and then narrowing your search to particular properties in the area.

There are a few ways to go about this. Possibly the most efficient way to find properties is to allow your real estate agent to keep you up-to-date on available properties that meet your criteria, and then allow your agent to screen these properties for you. When your agent presents you with a property that interests you, he or she can arrange for you to tour the property at your convenience.

You can also access local publications highlighting available real estate in the area; contact and visit the local Chamber of Commerce, look on the Internet; and even drive through areas that you feel would meet your needs. Driving around a particular area looking for properties for sale is good because you can actually see the property. However it can be very time consuming and it is a "hit or miss" process.

                                                                 STEP 5 - MAKE AN OFFER

Now that you and your real estate agent have found the property you to purchase, it's time to make an offer. Consider the recent sales of properties in that area, which are similar in size, quality, conveniences, and amenities, to determine what you are willing to pay for the property? Your real estate agent will consult with you and advise you on how to create an offer that will have the best chance of being accepted.

Your agent will ensure that you have everything down in written form. No verbal agreements. After consulting with your agent to put your offer in a written contract that meets all the legal requirements according to local and national guidelines, your agent will present the seller with a written document detailing what needs to be done by both parties to execute the transaction. The contract should protect the best interests of all parties involved and should be comprehensive in nature. Your agent will also ensure your financial position as the buyer by including any necessary contingencies, which would protect you if a particular requirement were not met. It may be too late to make any changes once the seller accepts the offer.

                                 The contract, though not limited to this list, should include the following:
                        · A legal description of the property
                          · The offering price
                            · The down payment
                              · Financing arrangements
                                · A list of fees and who will pay them
                                  · Amount of the deposit
                                    · Inspection rights and possible repair allowances
                                      · The method of conveying the title and who will handle the closing 
                                         · A list of appliances and furnishings that will stay with the property
                                           · The settlement date
                                              · Any relevant contingencies

Remember that the legalities of this phase are very important. If you have any questions or concerns, they need to be addressed right away.
 
                                                  STEP 6 - NEGOTIATE THE OFFER

Once your offer is made, you and your real estate agent may need to enter into negotiations with the seller in order to reach an agreement. Keep in mind that almost everything is negotiable when you are buying a property. This can give you a great deal of leverage in the buying process -- that is, if you have adequate information. And you use it in an appropriate manner. Your agent will have the market knowledge and negotiating expertise necessary to make sure that your offer is accepted at the best price and terms possible for you.

                                                       Some of the things that you may have to negotiate are:
                                                · The price
                                                  · Financing
                                                    · Closing costs 
                                                       · Repairs that need to be done
                                                          · Appliances and fixtures
                                                            · Landscaping 
                                                                · Painting
                                                                  · Occupancy time frame

The key to successful negotiating is keeping in mind that the end result must make both you, the buyer, and the seller happy. Otherwise, negative feelings will persist throughout the remainder of the process, and one or both of you will walk away feeling that you were not treated fairly.

                                                       STEP 7 - FIND A VENDOR

After your offer has been accepted, your agent will supervise the coordination of all necessary vendors and serve as your advocate when working with each vendor. Your agent will make sure that the vendors have access to the property at the appropriate times to perform their procedures and oversee the execution of those procedures on your behalf.

One key example of this is the property examination. Working with your lender, you may need to have a formal appraisal and a survey doneon the property for the contract. A property inspection, a foundation inspection, and an environmental inspection may also need to be completed to make sure that the property is up to the standards set forth in your written agreement. If there are issues or inconsistencies brought to light during this time, it may delay or even nullify the contract depending on the contingencies set forth in the document.

Property owner insurance is another important item that will need to be taken care of at this point. Insurance experts recommend that you obtain insurance equal to the full replacement value of the property. Unless you have insurance coverage on the property, the closing can not proceed.

Having these procedures done in a timely and professional manner is a must. Investigate each vendor to make sure they are reputable and have a clean operational history. Your agent's experience in this area will be invaluable.

                                                       STEP 8 - PRE-CLOSE PREPARATION

As the closing date draws near, your real estate agent will contact the escrow company or closing attorney and your lender to make sure that all the necessary documents are being prepared, and that they are complete, accurate, and delivered in a timely manner. Your agent will also need to confirm that the documents will be delivered to the correct location so they can be reviewed and that they will be ready for the appropriate closing date. At this point, you and your agent should find out what form of payment you will need to bring to the closing for any unpaid fees. Make sure that your payment is made out to the appropriate party. Ensuring that each closing document is ready and available will enable you to have a quick, easy closing.

                                                             STEP 9 - CLOSING ON A HOME
 
"Closing" refers to the meeting where ownership of the property is legally transferred to the buyer. It is a formal meeting in which most parties involved in the buying/selling process will attend. Closing procedures are usually held at the title company's office or lawyer's office. Your closing officer coordinates the document signing and the collection and disbursement of funds. Your agent will be present at your closing to read the documents on your behalf, answer any questions, or help to resolve any last minute or unexpected details that may come up.

In order for the closing to go smoothly, each party involved should bring the necessary documentation and be prepared to pay any related fees (closing costs). There may be more than one form of acceptable payment for your closing costs, so ask the closing officer which form of payment will be required and to whom it should be made out. Closing costs will generally total an amount equal to 2 to 3 percent of the total loan value, not including down payment and the buyer's escrow account.
 
Sellers sometimes pay for a portion or all of the closing costs, depending on local market conditions, terms of the purchase contract, and the seller's cash and timing considerations. Any such concessions should be acknowledged in writing. Most lenders will allow a credit from the seller to the buyer for the non-recurring closing costs. However, they usually won't allow a credit that reduces the amount of the buyer's down payment or any of the buyer's recurring costs, such as expenses for fire insurance premiums, PMI, or property taxes.

                                                           STEP 10 - POST-CLOSE ACTIVITY
 
Congratulations on the purchase of your new home! Now that you have taken ownership of the property you will need to have your local services such as electricity, cable, and phone set up. Your real estate agent can help you coordinate the set-up of these local services. No doubt your agent already knows who the local vendors are for such services as water and electricity, as well as others, so he or she can help provide you with a list of contacts.
 
Also, you should already be aware of the expenses that are typically associated with owning a home. Neighborhood Association fees, landscaping costs, and annual taxes should be budgeted for throughout the year.
 
                                                                           Call John Sternberg at:
                                                                             cell: 941.286.5087
                                                                  Home/Office: 941.697.0446 today!
                                                                 E-MAIL  pgstern@aol.com