Now that you’ve decided to buy a home, what happens next? The following steps are an overview of what you can expect during the home-buying process.
1. Representation
Finding the right agent. My job is to represent your best interests through every step of the purchase process.
2. Financing
It may seem like a no-brainer but it’s vitally important to find out how much house you can afford before you go house-hunting. If you will be purchasing the home with a loan, I can refer you to a mortgage specialist who can assist you with getting a loan. Once you have obtained a pre-approval letter from your lender, we can begin the home shopping process.
3. Define Your Priorities
While you are working on your pre-approval, begin making a list of everything you want in a home. Is a master suite important? How many bathrooms? What about storage space? Do you need a yard for kids or pets? What style of house do you prefer? Are schools or access to public transportation important? Identify the top three things from your list and prioritize the rest. We’ll go over your list together so we are clear on what you want and need in your home, and why.
4. The Search
The home search can be the most exciting part of the process and also the most stressful. In today’s market, you, the buyer, can be much more engaged in the process with all of the online home search websites. This is a great way to familiarize yourself with the inventory. When selecting a home, look beyond cosmetics. Make sure the home is in good physical condition and that you understand the cost of repairs. Look at additional homes, even if you love the first one you see. This will help solidify your decision.
5. Offer Submission
Once you’ve found the right home, I will work with you to put together an offer to submit to the seller. You may want to go over the sale agreement paperwork prior to submitting an offer; there is a lot of fine print and it’s important to fully understand the contract and contingencies. I will help guide you and answer any questions.
6. Mutual Acceptance
After both parties have negotiated to reach an agreement and a closing date, the clock starts ticking on contingencies. Now is when your team (agent, lender, escrow, inspector) get to work ensuring that everything is done properly and within the deadlines. Typically, if you are financing the property, the time it takes to close a transaction ranges from 30-45 days from mutual acceptance.
7. Inspection
There is time window, stipulated in your contract, during which all inspections have to take place. I always recommend buyers attend the inspection(s) so they can ask the inspector(s) questions directly. Once the inspections are complete, we may need to negotiate repairs with the sellers. The inspection period is usually the biggest hurdle of the purchasing process.
8. Appraisal + Financing
After the inspection period, your lender will order an appraisal. The appraisal is used by your lender to determine the value of the home, which also determines how much the bank will lend against the property. Once the appraisal is complete, your lender will work on finalizing the loan.
9. Closing
One-to-two weeks prior to your closing date there will be a flurry of activity involving you, your lender, agent and escrow officer. Everyone works together to ensure that all the pieces of the puzzle fit together in order to close on time. Typically, you will sign closing paperwork at the escrow office, but this can sometimes be done electronically. After both buyer and seller have signed the paperwork and the transaction has been funded and recorded, the property is yours!