#1 Identify your needs for your new home.

Congratulations on your decision to buy a home! Your first step toward buying you new home will be to analyze exactly what your needs are. Once you have established your needs, we can create a clear picture of exactly what your home should look like and how you want it to function for you and your family. The first part will be to list the reasons why you are looking for a new home. For example, are you currently renting and would like to begin building equity? Maybe you have recently married or had an addition to your family which has outgrown your current residence. These factors will all play an important role on how you approach your home search.

Second, establish a time frame that you would like to stay within for buying your new home. Depending on your reasons for wanting a new home and the current market conditions in the area you are looking to buy, you should be able to come up with a rough timeline, which you can adjust as may be necessary.

Lastly, you more than likely have a mental picture of what you would like your home to look like and what features it should have. It is very important to write these ideas down to avoid any ambiguity later in your home search. You should make two lists: one should be a list describing your dream home and the other should list the features of the home that the home needs to have in order for you to buy it. It is then our job to blend both lists and find a home that you are 100% satisfied with.

#2 Get Pre-Qualified and Pre-Approved.

Once you have combined your lists into one “perfect” list, you can start looking. Or can you? Well, not just yet. As a buyer you will have to figure out what price range you will be comfortable with.

Prequalification 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. In Las Cruces, as in most markets, pre-qualified buyers usually hold little clout compared to pre-approved buyers.

Pre-approval is a very thorough and complete process. The lender takes into account all information regarding your finances, credit history and time on the job. By getting yourself pre-approved for a mortgage loan, you will know what you can afford and then base your decisions on a number and payment you are comfortable with. Being pre-approved lets the seller know that you are serious about buying. Therefore, being pre-approved is more attractive to a seller than just being pre-qualified.

#3 Get Local Area Information

Now that you have your lists of needs and wants and you know how much you can afford to spend, it’s time to look at some homes. Well maybe not just yet. You must stop for a moment to consider that people don’t just buy a house; they buy the community the house is in. Think about it . . . if you found the house of your dreams, but it was located in a less desirable neighborhood that wasn’t to your liking, the odds are great that you wouldn’t make an offer on it.

Again, you will need to list the areas you are comfortable living in. Depending on your lifestyle, you will want to consider things such as views, covenants, drive time to and from work, school districts (if you have children), and what amenities are offered (tennis courts, golf course, swimming pool, parks and trails, etc.).

#4 Now, You’re Ready To View Home Listings.

Search for properties in your area or browse our new listings area. You can even define your search based on specific criteria. Then together you and your agent can “re-fine” your search profile to narrow down, or expand if necessary, property selections to fit the home you desire.

Next, we set an appointment to arrange with the various property owners a time to see their homes. But before we visit the seller’s homes, you must decide how you want your Realtor working with you to show you those homes and to negotiate a purchase for you.

New Mexico law requires that real estate brokers disclose the various broker relationships available to you. Be sure to ask your Realtor to explain the various methods of these working relationships to you and then decide which works best for you.

#5 Make An Offer On The Home.

After we have found the home you would like to purchase, it’s time to make an offer. At this time we sit down and take into account the recent sales of homes in that neighborhood which are similar in size, quality, conveniences, and amenities. Then, you decide what are you willing to pay for the home? Our agents will consult with you and advise you on how to create and present an offer that has the greatest opportunity of being accepted.

Once you’re ready, your agent will put your offer in writing and present it to the seller in a written document detailing what needs to be done by both parties to execute the transaction. The contract should protect the interests of all parties involved and should be comprehensive in nature. 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 (earnest money)
• Inspection rights and possible repair allowances
• The method of conveying the title and who will handle the closing
• A list of appliances and furnishings which will stay with the home
• The settlement and closing 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. After all, no one has ever said at their closing, “I wish I had asked fewer questions.”

#6 Negotiate The Offer On The Home.

Once your offer is made, you and your agent may need to negotiate certain items in order to reach an agreement. Keep in mind that almost everything is negotiable when you are buying a house. 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 should have the market knowledge and negotiating experience necessary to make sure that your offer is accepted at the best price and terms possible for you.

The key to successful negotiating is keeping in mind that the end result must make both parties happy. Otherwise, negative feelings will persist throughout the remainder of the process and someone may walk away feeing that they were not treated fairly.

#7 Finding The Vendors You Need

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 one. They 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.

Homeowner insurance is another very 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 home. Unless you have insurance coverage on the home, the closing can not proceed. Title insurance is another “must have” in order to complete the real estate transaction. The commitment issued by the title company must be thoroughly reviewed for any conditions that need addressing prior to closing. Having these procedures done in a timely and professional manner is an absolute necessity. Investigate each vendor to make sure that they are reputable and have a clean operational history.

Your agent’s experience in this area will be invaluable in making sure that everything is completed on time and in a professional and legal manner.

#8 Pre-Close Preparation.

As the closing date draws near, your agent will 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 in a timely manner. They will also confirm that the documents will be delivered to the correct locations 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. Generally, these fees will appear on the settlement statement and the title company will see to it that they are paid in full.
Ensuring that each closing document is ready and available will enable you to have a quick and easy closing.

#9 Closing On The Home.

“ Closing” refers to the meeting where ownership of the property is legally transferred to the buyer. It is a formal meeting in which both parties involved in the buying and selling process will attend. Closing, procedures are usually held at the title company’s office or the broker’s office. Your closing officer coordinates the document signing and the collection and disbursement of funds. One of our agents 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 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 (unless it is an approved “Cash Assistance” program) or any of the buyer’s recurring costs, such as expenses for homeowners insurance premiums, mortgage insurance, or property taxes. As always, there are some exceptions to this trend.

#10 Post-Closing 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, gas, cable, and phone set up. Your agent can help you coordinate the set-up of these local services and will even 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. Some of these expenses may already be a part of your monthly mortgage payment. Be sure to ask your agent to identify these for you.