STEPS FOR THE HOME BUYING PROCESS

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READY TO BUY A HOME 

You have saved money to cover your closing costs, down payment, inspections, and appraisal. Typically, 6-10% of the price of the home. For first time home buyers there may be grants available to help cover these costs.

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OBTAIN MORTGAGE PRE-APPROVAL 

Go to your bank, credit union or mortgage lender and complete a mortgage application. You will need your W2’s, paystubs, bank statements, etc. The mortgage pre-approval letter will show you how much house you can afford, the interest rate and terms of the loan. Ask your lender about programs to assist with closing costs. 

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FIND A REAL ESTATE AGENT 

Meet with your real estate agent to define the type of home you are looking for (style, price, neighborhood, school district, etc.) 

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SEARCH FOR HOMES 

Your RE agent will send you property listings that match the criteria you discussed. 

 

SCHEDULE SHOWINGS 

The fun part! Your RE agent will schedule showings for the properties you express interest in. You and your RE agent will visit those properties together. 

 

YOU’VE FOUND THE HOUSE 

Once you have found a house that you love, work with you RE agent to make an offer. Your RE agent will review comps to determine the best price to offer. 

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SUBMIT OFFER 

Your RE agent prepares the offer and submits it to seller’s agent. The offer includes the price, settlement date and contingencies. The offer should be presented with a earnest money deposit and proof of funds or a mortgage pre-approval letter. 

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NEGOTIATE 

If may take a few rounds to get an offer accepted. Stay encouraged and trust the process. 

 

OFFER ACCEPTED 

The property is now under contract! 

 

TRACK DATES 

You will receive important contract dates from your RE agent. It is important to meet all contract due dates to ensure the contract is not terminated. 

 

ORDER INSPECTIONS 

Your RE agent will order inspections (home, radon, termite, etc). The inspection is the time to find out as much as possible about the house. Buyers should attend inspections. 

 

ORDER APPRAISAL 

Mortgage lenders will order the appraisal. Appraisers will inspect the property and review the comps to determine the value of the house. The appraised value of the house should be equal to or more than the price the buyer has offered to pay for the house. 

 

REQUEST REPAIRS 

Review the inspection report with your RE agent. Ask the seller to fix items listed in the inspection report or appraisal report. The seller can decline to fix some or all the items. You can possibly re-negotiate with seller to reduce the sale price or ask for credits to cover the costs of some of the repairs. 

 

FINAL DEPOSIT 

Buyers will submit a final deposit after contingencies have been satisfied. 

 

ORDER LOAN DOCS 

The lender prepares and sends loan documents to the title company. 

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TITLE SEARCH 

The title company does a property title search to examine public records to confirm legal ownership of the property and to see if there are any liens or judgements against the property. If so, all liens and judgements will have to be cleared before the property can be sold and title insurance can be issued. 

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FINAL WALK THROUGH 

The day before or the day of settlement, the buyer and the buyer’s RE agent will do a final walk through of the property to ensure its condition is as agreed upon. 

 

SETTLEMENT 

On settlement day the transfer of funds and ownership will be facilitated by the title company. The buyer’s lender wires money to the title company for the purchase of the property. The buyer receives the house keys and the seller receives the proceed check. 

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CONGRATULATIONS!!! 

Welcome To The World Of Home Ownership!!

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