My job is to make sure the deal happens, we stick to the deadlines in the contract, and this is as worry-free for you as possible.
So, what are the steps to buy a home?
THE MAIN STEPS OF PURCHASING A HOME
- PREAPPROVAL by a lending institution for a loan based upon your income, credit score, debts, and expenses. In order to better your chances of an offer being accepted, it is VERY important to have this done as early as possible.
- SEARCH for the perfect home. The more information you can provide (#bedrooms, #bathrooms, budget, etc), the easier the process
- SUBMIT YOUR OFFER to the agent representing the sellers. This process involves deciding on a price, date you would like to take possession, and other details about finalizing the purchase. An offer may be accepted, declined, or countered by the sellers.
- WAIT TO CLOSE on your home. During this time, your mortgage is being finalized and the home is being researched by a title company to verify ownership, liens, property taxes, etc.
- CLOSING on your home will involve a lot of document signing. The “escrow officer” at the title company is there to complete the transaction. You usually attend in person, the officer will go over each page of documents and answer any questions. Their job is to make sure everything is filed so that you are now legally the owner.
- RELAX and let the fun begin. Take a deep breath and enjoy your new home.
Let’s get more specific:
Get preapproved by your lending institution. This is crucial in today’s market
Begin your home search
SUBMITTING YOUR OFFER
Be sure to sign all paperwork ASAP. Time is of the essence!
Negotiate contract
ACCEPTED CONTRACT
I can not stress this enough, DO NOT open any new lines of credit, make any large purchases until closing, or change your job. All of this will change your credit score.
Provide earnest money as soon as the deal is accepted
Schedule inspection ASAP. Most contracts allow 10 days to get the final report. (This is a buyers expense)
If financing, banks will usually schedule an appraisal. Optional for cash offers
Paperwork will be sent to your lending institution. It is VERY important that you do not hesitate if additional paperwork is requested. If the bank does not complete financing, the deal can be lost if the closing day is not met.
CLEARED TO CLOSE
Contact utilities to schedule service as early as possible.
Contact your insurance provider for homeowners insurance. If financing, the bank will select an insurance company, of their choice, if you do not have one in place before closing. NOTE: This is NOT a good thing.
The title company takes over the closing for the most part. They will send a settlement statement a few days before the closing date with the final total due, after credits and debits.