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Step - 1 Make the Decision to Buy |
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It seems obvious, but it's good to note that the first step to buying a second home is making the decision to buy. Consider the reasons you want a cottage at the beach and write them down. Determine how long you want to own a second home - does buying still make good financial sense?
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Step 2 - Seek Professional Guidance |
| I'm available in person, by phone or email to discuss with you the reasons you want to buy a cottage and your plans for the future. We'll talk about island life, property management, insurance, economic factors liable to affect the market today and tomorrow, as well as how you would like your second home grow with you.
At this time, I will also help you get pre-qualified for a mortgage loan. Pre-qualification is a written statement from a loan officer indicating his or her opinion that you will be approved for a mortgage loan up to a certain amount. The fact that you are pre-qualified will help us when we are negotiating the deal.
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Step 3 - Begin the Hunt |
| After our initial contact, I'll search all my resources for cottages on the market that fit your criteria. I'll forward the information to you through our Mutiple Listing Service. See anything that looks interesting? More information can be gathered or appointments to view the cottages can be made.
As we tour cottages, I'll point out positive features and negative features. I'll ask you to tell me what you like and what you don't like. You'll probably amend your "wish list" as we tour the beach houses, some things will become more important and others less important. With this new information, we can refine your search criteria to narrow in on the beach house of your dreams.
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Step 4 - Know the Market |
| My knowledge of the local market is an essential factor in the cottage search. I'll let you know when the market in a particular village is "hot" and requires immediate action or when the market is "cool" and allows for thoughtful consideration.
In a "seller's market". It is not unusual to see multiple offers on a property, full-price offers and even above-price offers. On the flip side, during a "buyer's market" there are more houses for sale than buyers. This gives us more negotiating room as beach cottages are taking longer to sell.
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Step 5 - Find Your Castle in the Sand |
| I'm confident we'll find your dream cottage. When you do, I'll put together the purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.).
The offer is normally presented with "earnest money". This is a cash deposit made to a home seller to secure an offer to buy the property. The amount is applied to closing costs. If the seller accepts the offer, generally closing is held 30 to 60 days from the offer date (generally dependent on the turn around time of your mortgage financing).
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Step 6 - Negotiate the Deal |
| It is not uncommon to receive a counter offer when the initial purchase offer is submitted. Don't let this discourage you. We will discuss the counter offer and decide whether or not to accept the counter offer, submit our own counter offer, or reject the counter offer and move on.
Market conditions will play a role in how aggressively we negotiate the deal. We will also work within your limits. Emotions can lead to buyer's remorse. It is better to set limits prior to negotiating an offer and stick to these limits.
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Step 7 - Get a Loan |
During the closing period, you will be working with your mortgage lender to close the loan. Since you pre-qualified for the loan before starting your home search, you will be that much closer to the end. I'll gather the necessary property information your lender will need to close the loan.
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Step 8 - Close the Deal |
You will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer's past experience and may not include all the closing costs. I will be glad to review the "Good Faith Estimate," answering questions and highlighting missing costs and estimates I believe to be low.
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Step 9 - Move In |
| Congratulations! It's time to enjoy your cottage at the beach and make it your vacation destination! Enjoy this exciting time. |
