Whether you are a first-time homebuyer or you've bought many homes over the years, a home is a huge investment - possibly one of the most significant financial decisions you’ll make in your lifetime. It’s an exciting journey that requires careful planning, research, and consideration so starting with knowledge of the process will not only improve your buying experience but will also allow you to make more informed decisions.
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Step 1
Lender Pre-Approval
This is a critical step when starting the buying process. Your lender will determine the best mortgage type for your situation, as well as how much house you will be able to afford. We all know there's nothing worse than looking at something, falling in love with it, and then realizing you can't afford to buy it. Pre-approval will help alleviate the disappointment that comes along with this frequently-made mistake. Not only is this a great way to get off on the right foot for your own experience but pre-approval letters enhance an offer package as well. It shows the seller you are a serious buyer and makes them feel more confident in your offer.
Need help with finding a lender? No worries, I can help with that!
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Step 2
Meet with a REALTOR®
Now that you have an idea for the price range you should be looking in, it's time to find a REALTOR® that will help you navigate this journey. Make sure this is not only someone that is knowledgeable of real estate and the area but an agent who is readily available and willing to meet your real estate goals.
If I'm lucky enough to be your REALTOR®, we will start with discussing the specifics such as... What are your wants and needs for the property? Is there a certain location you prefer? What are your must-have features? Deal-breakers? How can I help to make this process a positive experience for you?
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Step 3
Search and Showings
Based on our discussions, we will start searching and viewing properties that may be of interest to you!
In today's world, there are so many resources to use when it comes to searching for real estate. Zillow. Realtor.com. Homes.com. Facebook. Realtor websites. The list goes on and on... I'm willing to bet, if you are reading this blog, you have already done a Google search to see what's out there!
In addition to the internet, your agent will be able to provide insight that can refine your search with details pulled from the MLS listing, county records, personal knowledge, and other pertinent documents. The more information you have up front, the better chance you have at viewing homes that are truly potential fits for you. The last thing you want to do is become overwhelmed because of viewing homes that could have been easily crossed from the list from the start.
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Step 4
Make an Offer
Based on the list price and your budget, make your BEST offer. Your REALTOR® will make suggestions and discuss strategies that can help make your offer the most appealing to the seller. Keep in mind, other offers can be made on the property so be competitive if you LOVE it! If you have any uncertainties, include them as contingencies in the offer and research those once your under contract.
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Step 5
Negotiation
The sellers will either accept, decline, or “counter” your offer. Once both parties have agreed on the purchase price and other terms, the contract is ratified (under contract)! Your agent will help you understand terms of the contract so you are able to secure your home on terms that work for you.
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Step 6
Inspection Period
The agreed upon earnest money deposit will be submitted and inspections will be scheduled. As studies and inspections are completed, you will negotiate any needed repair requests. TOP PRIORITY... the inspection results are satisfactory to you!
Typical inspections include a home inspection, septic inspection, water test, and wood destroying insects/wood destroying organisms inspections.
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Step 7
Final Details
The lender will order an appraisal to determine the value of the property. All documents and disclosures will be submitted to your settlement agent or lawyer and a title search will be completed to ensure clear title.
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Step 8
The Closing
Your lender will provide the “clear to close” once your loan has completed the underwriting process. Lastly, the closing documents will be reviewed. Once needed documents are signed and the deed is recorded, the property is yours.
