The Home Buying Process Explained
When it comes to buying a home there's a lot that needs to get done.
It can be overwhelming and if it's your first time you might not even know where to start.
Many different professionals are involved in the home buying process: real estate agents, lenders, inspectors, and escrow.
All of these will play a role in your home purchase.
You will find out what each of their roles is in the steps that follow.
The Home Buying Roadmap:
1. MEET WITH A REAL ESTATE PROFESSIONAL
Discuss the type of home you're looking for, including style, price, and location.
2. THE BUYER'S ADVANTAGE
As the home buyer, your agent's commission is paid by the seller of the home in almost all circumstances.
This means your representation costs you nothing!
3. GET PRE-APPROVED
You will need pay stubs, W2s, and bank statements. Knowing what you can afford is critical to a successful home shopping experience.
4. SEARCH FOR HOMES
The fun part! Your agent will schedule showings and help you find the perfect home.
5. ADVANCED SEARCH
Not all real estate websites are the same.
Your real estate professional has tools and systems to ensure you see every available home that meets your criteria.
6. ATTEND HOME SHOWINGS
Go prepared and be ready to keep track of likes and dislikes during your showing.
7. MAKE AN OFFER
Your agent will prepare your offer based on the price and terms you choose.
8. NEGOTIATION & CONTRACT
It may take a few tries to get it just right, but hang in there. You're on your way!
9. THE CONTRACT
The contract provides you with a timeline to obtain financing as well as time to inspect the physical condition of the home.
Your real estate professional will inform you of all your rights and responsibilities related to the contract.
10. UNDER CONTRACT OR IN ESCROW
You and the seller have agreed to the price and terms.
The home is effectively held for you until closing.
11. FINAL DETAILS
Perform due diligence, order the appraisal, conduct an inspection, and review terms with the lender.
12. PREPARING FOR CLOSING
You will be finalizing your loan, reviewing documents, and discussing the findings from the inspection.
Your agent will manage this entire process for you.
13. CLOSING
This is the transfer of funds and ownership.
A title company or an attorney typically acts as an independent third party to facilitate the closing.
Conclusion
Buying a home is a long process with plenty of steps and many different key players.
To keep you from feeling overwhelmed or lost, it is good to familiarize your self with all the different checkpoints you will reach on your way to buying your home.
It might help to refer back to this article every time you reach a new milestone to jog your memory.
