Eight Steps to Buying a Home

Just making the decision that you’re committed to buying a new home is exhilarating. It is a time brimming with possibility and the potential to find not just a new place to dwell, but a new quality of life. Buying a new home can mean new possibilities for your family, new rooms to decorate the way you like, and new scenery to enjoy.

The decision is just the beginning of an adventure that can be filled with discovery. However, it also can be frustrating, especially if you don’t know what to expect from the actual process of purchasing a new home.

How do you decide what type of home you prefer ­­– a Dutch Colonial, a Cotswold Tudor, something contemporary? And, how much can you afford? Should you get pre-approved for a mortgage? What’s involved in closing the deal?

Here’s an eight-step guide to the process, adapted from our new Houlihan & O’Malley Home Buyer’s Guide, which can help you refine your choices and navigate the process.

Step 1: Define your goals. Take stock. Determine what type of home you want and where you want it to be. Make a wish list of items that you would like in your “dream home,” including square footage, number of bedrooms and bathrooms, style and age of house, and lot size (a helpful worksheet is included in our Buyer’s Guide.)

Step 2: Go over your finances. Figure out what you can afford and how big a mortgage you can take on (a mortgage worksheet is in our Buyer’s Guide).

Step 3: Contact a real estate professional. Our Realtors® at Houlihan & O’Malley Real Estate understand the local market and have an in-depth knowledge of the area’s communities. A member of our expert team can help guide you through the property search, financing, negotiations, and transaction process. We can help you from the very beginning of your search through the day you close.

Step 4: Get pre-approved. The pre-approval process involves meeting with a lender and authorizing them to examine your current financial situation and credit history. On the basis of these findings, the lender will provide you with a document that details how much you need to borrow in order to buy your home. The mortgage pre-approval not only helps you plan, it also tells sellers that you’re serious about buying when you make an offer.

Step 5: Do the search. It pays to start the search on a real estate website such as houlihanomalley.com, where you can view as many homes as you like and zero in on what is of interest to you. You can also count on your Houlihan & O’Malley Realtor® to save you time by diligently searching the market for homes that meet your criteria.

Step 6: Make an offer and negotiate. When you’ve found the home you want to buy, your Realtor® will make an offer on your behalf to the seller’s Realtor®. Expect a counter-offer. You’ll go back and forth until you and the seller agree upon the price, terms, and timing of the sale. After this is settled between you and the seller, you’ll have an “accepted offer.” It is at this point that you have inspections done – before you sign the Contract of Sale. Once the inspection items have been resolved, you’ll meet with your attorney to sign the contract and provide a check for the contract deposit (usually 10 percent of the purchase price).

Step 7: Secure your financing. Once you have a fully executed Contract of Sale, you will have all the details you need to formally apply for a mortgage. Generally, there are two ways to go: a fixed-rate mortgage with an interest rate that remains the same for the life of the loan, or an adjustable-rate mortgage (ARM) with a rate that adjusts up or down, depending on economic trends. Your Houlihan & O’Malley Realtor® can refer you to some excellent mortgage professionals so you can make the best financial decision.

Step 8: Close the deal! Leading up to the closing, your attorney will order a title search. You will need to obtain a homeowner’s insurance policy. On the closing date, you, your attorney, and your Realtor® will meet at the lender’s lawyer’s office to pay the rest of the cash portion of the purchase price, sign all the mortgage documents, and pay the various closing costs. The sellers and their attorney will also attend. One last tip: Don’t forget to get the keys. It’s your home now.

You can find more information on these steps and a wealth of other information in Houlihan & O’Malley’s latest Home Buyer’s Guide, available on our website or at our office. Stop by 133 Parkway Road in Bronxville, NY, and pick up a copy or give us a call at 914-337-7888 and we’d be happy to put one in the mail. And when you’re ready to buy, we’re ready to help you find a home that’s ideal for the next phase of your life.

About Houlihan & O’Malley

The Residential Sales Group at Houlihan & O’Malley is a boutique agency dedicated to offering clients inspired service, unwavering focus, and a commitment to real estate excellence. At Houlihan & O’Malley, agents who are knowledgeable, involved, and dedicated treat clients to an exceptional level of service. The Residential Sales Group appreciates the needs and time constraints of its clients and constantly strives to embody the company’s motto of “Excellence on Your Side.”

There are currently nine agents working in the Residential Real Estate Sales Group. Together they represent the best combination of dedicated service and real estate skill. Individually, the agents have received numerous awards from the Hudson Gateway Association of Realtors (HGAR) for outstanding sales. All Houlihan & O’Malley salespersons are members HGAR, the New York State Association of Realtors, and the National Association of Realtors. Managing Partner Joe Houlihan is proud to be a member of the Board of Directors of the Hudson Gateway Multiple Listing Service.

For more information about Houlihan & O’Malley, call (914) 337-7888 or visit www.houlihanomalley.com.