Buy Your Home in 8 Steps

For most, home ownership is part of the American Dream. Home ownership is a long-term investment and yields many benefits such as potential appreciation. However, some may never take the steps to becoming a homeowner due to the notion that the process is too complicated.

We have compiled the most important steps in the home buying process and hope that this explanation will put future homeowners at ease.

1)   Financing
A.    Determine a budget: Conduct a rough analysis of your present-day monthly expenses and identify a monthly mortgage payment you are comfortable with.

B.    Save for down payment and closing costs: Down payment and closing costs are normally 7% to 7.5% of the total purchase price. Example: $200,000 (purchase price) x 7.5% (closing costs & down payment) = $15,000.
  Note: This is a rough estimate and your mortgage lender will be able to confirm specific costs.

C.    Get pre-approved: Research multiple lenders. Choose the lender that best meets your financial needs in terms of interest rates and lender fees. Your chosen lender will check your credit and request certain financial documents such as tax returns, bank statements, paycheck stubs, etc.

2)   Find the Right Real Estate Agent – Contact Us
Choosing the right real estate agent is critical. Good agents possess many positive qualities but most importantly use an agent that you feel will represent your best interest. Our professional and experienced staff is here to help!

 3)   Tour Homes
Your real estate agent will set up a search based on desired criteria including price range, neighborhood, home size, bedrooms, etc. Your agent will coordinate with you and create appointments based on your availability. Feel free to browse your own online resources and notify your agent when you come across a home that meets your criteria.

4)   Submit an Offer
When you find the right home, we will give you a recommendation on how much to offer based on recent comparable sales in the neighborhood. Your agent will also discuss other contract specifics and potential concessions based on the scenario.
 

5)   Deliver Earnest Money and Option Fee
Your real estate agent should deliver these to the appropriate party on your behalf:

A)   The Option fee is money paid by a Buyer to a Seller for the option. The option period allows the Buyer to terminate a real estate contract for any reason within the time frame specified in the contract.

B)   Earnest money are the funds that the buyer deposits with the title company which indicates the buyer's good faith in a real estate contract.

6)   Conduct an Inspection

Once your contract is accepted, we recommend in all cases, that the buyer request an inspection be performed by a licensed inspector.  An inspection should be performed, and repairs should be negotiated within the option period outlined in the contract allowing the buyer an option to terminate the contract if the parties are not able to come to an agreement regarding repairs.

7)   Appraisal
Once you come to an agreement on repairs/terms, your lender will order an appraisal. A home appraisal is conducted by a licensed appraiser and is an opinion of value.  All lenders request appraisals to ensure that the amount of money they are lending meets the value of the home.

8)   Closing
If the value of the home meets the amount of the loan, additional negotiations are unnecessary and you will proceed to closing.  Closing is the process where title transfers from the seller to the buyer. Congratulations! You are a homeowner!

Fill out the form below to Pre-qualify