Buyer Resources
SEARCH FOR HOMES
The Home Buying Process
01
Consultation
Talk to a Real Estate Agent. It's important to discuss your situation, wants, and needs with a Real Estate Agent first so that you can be guided in the right direction to start your home buying process.
02
Get Pre-approved
If you need financing, get pre-approved by a mortgage lender. Take the advice from your Real Estate Agent and apply with a preferred lender. Yes, you are allowed to apply with any company that you choose. However, know that the one who controls the money, controls the deal. That's the lender! It is wise to use a trusted lender from your Real Estate Agent.
03
Home Search
The fun part! Once you are pre-approved AND are comfortable with your numbers... max sales price, estimated monthly payment, down payment requirement, and estimated closing costs, then and only then are you ready to start house shopping. With your pre-approval in hand, it's time to start house shopping! Make notes of the pros and cons of each property to help narrow down your options.
04
Make an Offer
Once you SAY YES TO THE ADDRESS, make an offer to make it official. Rely on the expertise of your Real Estate Agent to guide you through making a strong offer that the seller will gladly accept. Once your offer is accepted by the seller, you are officially UNDER CONTRACT!
05
Pay Earnest Money
Similar to paying a security deposit when you rent a property, you also pay a deposit when buying a home. This depost is called earnest money. It's a good faith deposit to show the seller that you are serious about purchasing the property. The earnest money amount is typically 1% of the sales price, but could be more or less.
06
Underwriting
Up until this point, you have been pre-approved for the home loan. However, you need a full approval in order to purchase the home. The lender will begin underwriting to get you fully approved. This process requires an in depth review of your mortgage application and finances.
07
Inspections
Home Inspection: Don't skip getting a home inspection! It's extremely important to know as much as possible about the condition of a home before purchasing it. This is probably the biggest purchase of your life. You need to know exactly what you are purchasing. You can request that the seller handle any repair issues.
Appraisal Inspection: An appraiser will complete an inspection to determine the value of the home. The goal is for the value of the home to be at least the sales price. If there are any issues with the value, this is one area where having a knowledgeable agent will benefit you!
Wood Destroying Organisms Inspection: It is wise to have the home inspected for wood destroying organisms such as termites. If there is activity found, you can request that the seller have the infestation treated. Some loans require this inspection.
08
Title Search & Homeowner's Insurance
The closing attorney or title agent will complete title work to make sure the title is clean with no liens and ensures that the person who is selling the property is actually the owner and that there are no other people with ownership.
You will select a homeowner's insurance company and policy. Homeowner's insurance is required for all home loans.
09
Closing
CLEAR TO CLOSE...
Once all steps are complete, it's time to pop the bubbly! You have to sign a lot of documents too, but closing day is celebration day! You made it to the end. The deed will be trasnfered from the seller to you. Get your keys and enjoy your new home!
