Home Buyer's 10 Step Process
Buying a new home can be a very enjoyable experience, provided you use the right real estate professional and you understand the 10 step process.

Step 1 – Define Needs for Your New Property
The first step toward buying your new property will be to analyze your needs. This step is of particular importance to us and we take the time to help you determine exactly what you want out of your property, and the lifestyle changes that the right move can bring. It is important to us to partner with you in this process, but you can get started on your own.

First, 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. 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 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. We make sure to continue to communicate with you about your needs and desires while looking for the right home. 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 the 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 pre approval for a mortgage. Either way, you will need to contact a mortgage company.

Unlike most agents, we are ready to be very involved in the mortgage process. We think our clients deserve to have their agent looking out for their best interest in every facet of the home buying process. We will help you find a reliable professional to help you find the best mortgage product to fit your needs. Our extra effort does not end there; we will work side by side with your mortgage provider through the entire process and hold them accountable to giving you the best possible service.

There are some key differences between pre-qualification and pre-approval for a loan of which you should be aware. Loan pre-qualification 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 pre-qualified amount is based solely on the information you provide. In most markets, pre-qualified buyers usually hold little clout compared to pre-approved buyers due to the fact that the information given during the pre-qualification process is not thoroughly investigated and therefore may be unreliable. While a pre-approved buyer is actually approved for a loan of a certain amount, a pre-qualified 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 pre-approved lets the seller know that you have gone through an extensive financial background check and that there will be no unexpected obstacles to buying the home. You can see how being pre-approved would be more attractive to a seller than just being pre-qualified.

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 for the 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.

We will 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. Our experience in many 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. As a client of ours, we will create a customized search for you that will keep you up to date with all the new listings daily. We can screen properties for you, but we prefer to show you the properties that you want to see. When you find a property that interests you, we will 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
Once that we have found the property for you to purchase, it's time to make an offer. We make sure that you will have all of the information you need to make an educated offer. We do a comparative market analysis on your prospective property to determine exactly how it measures up to the competition in the area. With this information you will be ready to determine what you are willing to pay for the property. We will consult with you and advise you on how to create an offer that will have the best chance of being accepted.

After we consult with you regarding all aspects of your offer, we put your offer in a written contract that meets all the legal requirements according to local and national guidelines and details what needs to be done by both parties to execute the transaction We use the tried and tested contracts created by the Pennsylvania Association or Realtors. The PAR contract is comprehensive in nature and protects the best interests of all parties involved. This contract is then presented to the seller. The PROs will also ensure your financial position as the buyer by including any necessary contingencies, which would protect you if a particular requirement is not met. It may be too late to make any changes once the seller accepts the offer. That is why we make sure to cover every aspect thoroughly before we present it to the seller.

• 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. We make sure to educate you on every part of the contract so you know exactly to what you are committing.

Step 6 – Negotiate the Offer
Once your offer is made, we 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. We 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:

• 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 – Inspections, Appraisals, and Insurance
After your offer has been accepted, we will supervise the coordination of all necessary vendors and serve as your advocate when working with each vendor. We 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. Your lender will most likely always require you to have a formal appraisal done on the property before they will guarantee the loan. A property inspection, a foundation inspection, and a mold inspection may also need to be completed to make sure that the property is up to the standards that we 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 contract. You will be very happy to have our negotiating expertise on your side as we will be ready to enter another round of negotiations. We will make sure all of your concerns are addressed and remedied.

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 and you can count on us to deliver. We have a vast network of reliable and reputable vendors to point you towards. Our experience in this area will be invaluable.

Step 8 – Pre-Close Preparation
As the closing date draws near, we contact the title company and your lender to make sure that all the necessary documents are being prepared, and that they are complete, accurate, and delivered on time. Keeping every member of your team accountable is one way we go the extra mile.

At this point, we will review the preliminary charges detailed on the settlement sheet and make sure all the numbers add up. We will let you know exactly how much you need to bring to closing and the type of payment it should be.

Ensuring that each closing document is ready and available will enable you to have a quick, easy closing.

Step 9 – Closing on a Home "Settlement"
"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 from the title company coordinates the document signing and the collection and disbursement of funds. We will be by your side at closing to go over the paperwork with you, answer any questions, or help 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 3 to 5 percent of the total property value, not including down payment.

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. Our knowledge and experience working with lenders will assure that you are able to receive all of the credits that we have negotiated for you.

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. It’s a good thing that we already will have helped you coordinate the set-up of these local services so that your transition will be as seamless as possible.