Check Your Credit
|1) The first thing you will need
is to save your money for your down payment
and take stock of your credit scores
and clear up any discrepancies on your credit report.
|Pre-Approval||2) Next, contact a lender
to determine your buying power.
You will need to get a pre-approval from a lender.
This only takes 15 – 20 minutes with most lenders,
so don’t get overwhelmed.
|3) Then decide what you are willing to pay for a home
as the pre-approval amount may be more than you feel comfortable spending.
If you haven’t created a budget before,
this is an excellent time to start!
|Visit with Your Realtor|
Realtor Finds Homes
|4) Once you have completed these steps,
it’s time to get together with your agent
and talk about what you are looking for in a home.
Do you need a large fenced-in backyard so your kids can play?
Do you need a shop for your 4-wheeler?
Do you need the master bedroom on the main floor or you must have 4-bedrooms and 2.5 baths. (Etc.)
|5) Next, your agent will scour the MLS
to locate homes that match your price range and criteria.
You know the saying, “You have to kiss a lot of frogs to find your prince.”
So, it may take a while to find just the right home.
OR You might fall in love with the first home you view.
|Walk-Through Homes||6) Now is the fun part!
Your agent will set up appointments for you to walk through homes.
This can be an eye-opening experience that will help you
narrow down your likes and dislikes.
|Make an Offer||7) Once you find a home that meets your needs,
then you’re ready to make an offer.
Your agent will do research on similar homes that have recently sold or use her personal knowledge of the market
and give you input
to help you determine the price you are comfortable with.
|Negotiate & Agree||8) Next,
your agent will write a purchase and sale agreement
(also known as the offer) ,
then present it to the seller vie the seller’s agent
and negotiate on your behalf consulting with you along the way.
|Hire a Licensed Inspector||9) Once an offer is accepted,
you will select and hire a licensed inspector
to inspect the property
looking for any issues that could arise
and list repairs that may need to be made on the home.
Your agent will supply you
with several licensed & bonded inspector’s
to choose from.
|$300 - $450||10) You will need to be prepared to pay the inspector up front.
(Usually between $300 -$450 depending on the size and type of building.)
|Get Documents to Lender||11) In the meanwhile,
you will be working closely with your lender
supplying all the documentation
he/she will need to put your loan together.
Your lender will help you decide on the loan that is best for you.
(Conventional, FHA, VA, name a few).
|Lender Orders Appraisal|
Costs Between $600 - $900
|12) Once the inspection is completed
and you have supplied your lender with all he/she requires,
your lender will order an appraisal
which is the buyer’s responsibility to pay.
(This can be anywhere between $600 - $900
depending on the building.)
|Agent Tracks Deadlines||13) While you are working on your part,
your agent is coordinating all the steps
and keeping track of all the paperwork behind the scenes
making sure you don’t miss any deadlines.
For a list of all your realtor does on your behalf,
check out an article written by the National Association of Realtors, “Your Real Estate Professional Behind the Scenes” Click Here
|Choose a Title Company||14) You will choose the title & escrow company
you would like to use to administrate your closing documents.
Your agent will coordinate with you and the title company
to set up your closing date
and ensure your closing runs smoothly.
|Closing Statement Sent|
Know What to Bring to Close
|15) A few days before the closing date,
the title company will send you a closing statement
with the information of the amount of money
you are excepted to bring with you to the closing
and an itemized list of expenses and credits
negotiated previously with the seller
vie the purchase and sale agreement.
|Final Walk-thru Home||16) Your agent will go with you
to walk through the home
prior to your closing date
to make sure all repairs have been made
and everything is in order in the home as agreed upon.
|Sign Closing Documents|
Sale Recorded at Courthouse
|17) After you and the seller have signed all the necessary documents
and both have paid expenses,
the title company then takes the documentation to the court house
so that the transaction can be recorded.
Your loan is usually funded at this time.
after these steps,
you will be given the keys to your new home.
You may or may not be given the keys on the same day you sign the closing documents depending on the time of your closing appointment at the title company.
|Congratulations – You own a home!||19) It’s time to celebrate!!!
You have just bought a house! Now it’s time to move-in!
|20) Your agent will stay in contact with you
in case other issues arise
and just because a friendship has been formed. : )
Let’s Work Together!
I hope this has reminded you of the process of buying a home.
Please give me the opportunity to guide you through this process.
I am happy to serve you!