Buying a home isn’t nearly as scary as it sounds!
We’ve outlined the steps of the home-buying process below, and included some frequently asked questions to help you gain a better understanding of real estate transactions.
Steps of the Home-Buying Process
1) Contact your Realtor
It is important to have your own representation throughout the home-buying process. Having your own Realtor will get you a better purchase price, save you from costly mistakes and give you peace of mind through the transaction – All for FREE!
2) Get Pre-Approved
You wouldn’t go on a shopping spree without knowing how much is in your bank account! We work with some awesome lenders that will help answer any financing questions and tell you how much you can afford to spend on your new home.
3) Create your ‘Wish List’
Now that you know how much you can spend, it’s important to sit down and decide what features you can’t live without, and which you could go without for the right price.
We’ve made it easy, and created an online wish list you can fill out Here!
4) Begin searching for homes with your Realtor
Now we get to the fun part! Once we know exactly what you’re looking for, we begin searching for anything that fits your criteria and then we’ll send you your options via email. After you pick your favorites, we get to all cruise around and see them in person!
5) Submit an offer
After you’ve decided on your favorite home, it’s time to submit an offer! We will analyze comparable, recently sold homes in the neighborhood to help you come up with a strong offer. Remember, list price is rarely the sale price.
6) Negotiate the price/terms
This part sounds scary, but we are here to help! Negotiations help both the buyer and seller come up with terms they will both be happy with. Negotiations do not just involve the sale price. It can involve having the seller help pay for closing costs, including furniture with the sale of the home and more!
7) Offer accepted
Once your offer is accepted, we will take care of the rest!
8) Schedule an inspection and view the report
After you are “under contract” you will have time to hire an inspector to take an in-depth look at your new home and provide you with a detailed inspection report. If any issues come up on the report, don’t worry! You will either be able to negotiate the cost of repairs or back out of the contract entirely.
9) Submit HOA Application (if applicable)
If you’re buying a home in a community with a Homeowner’s Association (HOA), you will need to fill out an application and be accepted by the HOA before moving in.
10) Wait for your loan to get approved
Now we sit back and wait for the mortgage company to get your loan approved. This process is more in-depth than the pre-approval process and can take about 30 days. The mortgage company will be in touch with you to collect documents needed for your loan.
11) Pick up your keys to your new home!
On the day of closing, we will come with you to the Title Company/Attorney (The company that handles the legal stuff). You will have to sign a few papers and then… You’re officially a homeowner!
12) Celebrate!
We will drop off your personalized closing gift as a way to thank you for working with us. All that’s left if for you to crack open a beer, pop a bottle of champagne or treat yourself to a nice dinner because YOU DID IT!
Frequently Asked Questions:
“How much do I have to pay out of pocket?”
When you finance a home, there are still some out of pocket costs you will have to pay. First is the down payment. The standard down payment used to be 20%, but thankfully, times have changed. Now, first-time home buyers can qualify for loans that require as little as 3-5% (of the purchase price) down! Some lenders also offer down payment assistance programs.
Closing costs are also something to consider. Closing costs are a bundle of various expenses such as mortgage processing, taxes and title processing fees. They usually come out to be about 1-3% of the purchase price. If coming up with the money for closing expenses is difficult, don’t worry! Sometimes sellers will agree to pay all or some of the closing cost balance.
Remember- in real estate almost EVERYTHING is negotiable!
“How do I get pre-approved?”
The pre-approval process is quick and easy. A mortgage lender can usually get you pre-approved over the phone within 48 hours. It is completely free and will only knock your credit score down about 3 points. During this time, you will be able to “shop around” with other lenders to get the best interest rate, without knocking your credit again!
“What is my pre-approval based on?”
The loan amount you’ll be pre-approved for is based on your income level, debt and creditworthiness. If you aren’t sure where you fall on this scale, it never hurts to speak with a lender. We can refer you to some of the best in the area! If you’re not ready to buy yet, our lenders will get you on track to buy in the future.
“Why buy when I can rent?”
Financing a home is essentially like a forced saving account. As a renter, the rent you pay every month goes straight into your landlord’s pocket. As a homeowner, however, your mortgage payment goes back into YOUR pocket in the form of equity. (Equity is how much of your home you’ve paid off.) When it comes time to sell, you regain that equity in the form of cash!
“Why should I use a Realtor to buy?”
Some first time home buyers make a huge big mistake when searching for homes. They see a home they like, and contact the agent who listed the home, or walk straight into a new construction sales office. The problem is, that Realtor was hired by the seller/builder to get them the biggest possible profit on their home. It is important to have your own Realtor to represent you during negotiations and throughout the entire process.
“How much do I have to pay to work with a Realtor?”
Zero. Zilch. Nada. Realtors are paid by the seller of the home which means you won’t owe us a penny!
