The Larry King Team
The Larry King Team takes purchasing homes for our clients very seriously. A lot of time and research is conducted to make sure our clients are getting the best deal on the purchase of their new home. With Larry being the top negotiator at a fortune 500 company you can assure you are getting the best value on the purchase of your new home. In today's market the buyer has a variety of inventory to choose from with our tech savvy business structure we can assure you will find you the home of your dreams.
Step 1: Preapproval
The Larry King Team will get you in touch with our Loan Officer to find out how much you can borrow, which has a lot to do with how much house you can buy. Our Loan Officer will make sure you have a monthly payment that you feel comfortable with. There are no "rules" here - only you know how much you can comfortably handle.
It's okay to be a little stretched, at least at first. Most people "grow into" their mortgage payments. But it's also very easy to get in over your head. Stay away from "alternative" loans - like interest only mortgages. If the value of the house goes down after you buy it (not unreasonable in today's market) you'll end up owing the bank more than the house is worth.
Shopping for a mortgage will also help if you can get "pre-approved" for the amount you'd like to borrow. This means the lender has looked over your credit and financial statement and agreed to lend you the money. Sellers like pre-approved buyers because there's less risk the deal won't go through.
Step 2: Attorney
The Larry King Team will get you in touch with a good lawyer. If looking for someone who is honest, direct and takes the time to explain things the lawyer the Larry King Team works with will do just that.
Step 3: Research
Find out what houses are selling for in your area - and how much you'll have to pay for what you're looking. Look at selling prices - not asking prices. The Larry King Team will provide you with "comparables" - recent sales of houses that are roughly your target house. Our research is based on fact and we will show you the research we have conducted.
Step 4: Down Payment
Come up with a down payment - usually 15-20 percent of that price. (This is the hard part.) You may not have to put that much down (see preapproval) - some lenders will go for 10 percent or even zero. But these loans are riskier and usually more expensive. Besides, without a down payment, you don't own even a piece of the house. The bank owns the whole thing.
Step 5: Negotiation
The Larry King Team can now search for your new home. When the time comes, don't fall in love with the house. You may not get it. Based on the other houses you've seen and recent sales of comparables make a reasonable offer. You don't have to offer asking price, but if you "lowball," the seller may tell you take a hike. Find out, if you can, what the seller's circumstances are. If they've been waiting for years and are holding out for the best price, you may not have much room to negotiate. On the other hand, if they've already bought another house, they may be more "flexible." Tailor your offer accordingly.
Step 6: Wait For Reply
If you've bid lower than the asking price, expect a "counter offer" higher than your bid. This can go a few rounds until you settle on a price.
Step 7: Offer Acceptance
Once your offer is accepted (congratulations, by the way), you may be asked to put down a "binder" (a deposit of, say, one percent) until the contract is signed; some states give you a grace period of a few days to change your mind and walk away from the deal. Or you may go straight to contract. This process varies from state to state, something you want to ask your lawyer about before you get started.
Step 8: Closing
Call your lawyer. The seller's lawyer will send the contract to your lawyer for review. Read it carefully yourself. There are "standard" clauses, but there's no such thing as a "standard" real estate contract. (You may hear many people try to tell you this.) Understand what each clause says even if you don't follow the language in it. This is why you want an attorney who takes the time to explain things. If he can't or won't, that's not a good sign.