02/01/2022
What to Expect during the Home Buying Process
Step 1: Talk with your Realtor
Share with me your wants and needs in a home along with what your current living situation is so that we can come up with a game plan on how to get you into a home you love! Open communication is greatly appreciated so I can help you the best way possible.
Fun Fact about realtor payment - Fees typically come out of the sellers' proceeds, so buyers generally pay nothing to the agent who represents them.
Step 2: Talk with a Lender and Get Pre-Approved
Talk with multiple lenders and find one you want to stick with. Discuss mortgage options and ask them any questions you may have about financing. Your goal with a lender is to find one you like and trust then get pre-approved.Getting pre-approved will give you your budget and give you an opportunity to gain understanding of the financing. Your lender will help keep you informed along the way as well. I have trusted lenders that I can connect you with if you are looking for recommendations.
Step 3: House Hunt
When the time comes to start looking for a home, I’ll begin sending you homes daily that fit your criteria and you can tell me what you think and if you’d like a showing. Send me any homes you find that you’re interested in as well!
Step 4: Negotiate an Offer and Contingencies
Once we find a home you love and you’re wanting to put in an offer, we will discuss how to put in a competitive offer so that we can get it accepted!
Step 5: Earnest money
After you get your offer accepted, you’re now under contract with this home and your first out of pocket expensive is due-earnest money. Earnest money is a good faith deposit that is out of the buyer’s pocket within 2 or 3 days of getting your offer accepted. Earnest money is typically 1% of the home’s purchase price.
Step 6: Home inspection
I always recommend getting your home inspected. This allows you to confidently know what you’re getting into with the home you’re looking to buy and it’s an opportunity to negotiate any repairs or if the repairs are too big and the sellers are not willing to fix them, you can back out and get your earnest money back. This is your second out of pocket expense and is usually $300-$400 and is done within 10 days or so of your accepted offer.
Step 7: Appraisal
The lender will have the home appraised to ensure they're giving you a loan for the value of the home. The appraisal will either be due up front or tied into closing costs.
Step 8: Closing
After inspections and appraisals are done, we’ll coordinate with the other parties in the transaction and get a closing scheduled. This is usually about 40-45 days from the date of accepted offer. A title company, usually chosen by the seller, will gather everything necessary and you will bring any remaining money owed in a cashiers check to the closing. Sign a few documents and then the house is yours!!
