So you're ready to purchase a home! Whether it's your first house, or you've done this before,
Prequalification / Preapporval
Contact a lender to see how much you qualify for and help you determine a reasonable monthly mortgage payment
Contact a REALTOR
As a buyer, you don’t pay my commission! This is typically paid by the seller so you can usually be represented without any commission fees. With
Write Your “Must Haves” on Paper
Try to be realistic based on your budget, etc. But this is a great opportunity for you to actually write down what’s important to you in your next home. If there’s more than one person purchasing (such as a spouse) this will be a great opportunity for you both to discuss what’s important to you.
Search & View Homes Online and With Your Agent
Whether you drive around looking for homes, set up an online search, or actually view homes with me, I have great tools to help you in your search. Some buyers don’t know what they want in a home before they start looking, but once they’ve seen a few, it becomes very clear. Sometimes, seeing what you don’t want helps you decide what you do want.
Find the Right House & Make an Offer
Once you’ve decided on something, I’ll write an offer with you and submit it to the seller or seller’s agent. At this time, you will write a check for the earnest money. This is your first out-of-pocket expense, although you typically get the money back at closing. It’s typically about 1% of the list price of the home.
Offer Negotiation
I’ll negotiate with the seller until they 1) sign the offer 2) counter the offer with different terms or 3) until either party decides to not continue (can't come to agreeable terms) and rejects the offer.
Under Contract
Once both parties have signed and agreed upon terms, the offer becomes the contract and we start the process of making sure this is the home you want.
Document Review
You will have a change to carefully read and investigate various documents pertaining to the property. This includes title paperwork, seller’s property disclosure, CIC (Common Interest Community) documents, and any unrecorded documents that affect the property.
Inspection
This is perhaps the most important step of the contract. You will hire an inspector to inspect the property and point out possible safety issues or major problems, but also to educate you about the home’s systems. After your inspection, we will again negotiate with the seller to determine if the issues with be taken care of before closing and who will take care of them. This is a crucial part of the contract period called “inspection resolution”
Appraisal
If you’re getting a loan, the lender will most likely require an appraisal. They want to make sure that if they are lending you XXX dollars for a home, the home is worth at least that amount. A low appraisal will send both sides back into negotiation, but the buyer often has the upper hand in this situation. Appraisal fees are typically added into your closing costs.
Underwriting
At this point, most of your work is done. Your lender may contact you for some additional paperwork (such as paystubs) but the file is now going through final approval. The lender’s underwriter will review all aspects, from your ability to purchase and make your payments, to the property itself (appraisal, etc.).
Closing
You final made it! Day of closing will mean bringing good funds to closing (meaning “immediate funds” money such as a cashiers check – no personal checks or business checks that would have to clear with your bank), bring your drivers license or ID, and a strong hand because you’re going to be signing lots of papers! In the end, it will be worth it – in
