The Home Buying Process

1. Find and hire a Realtor

Make sure you find someone who really listens to your needs and concerns about buying a home. Once you select a Realtor, they will ask you to sign a contract with them. They will be spending a lot of time helping you find a home, so they want to make sure that you’re committed to working with them. They will also explain their responsibilities to you as your agent.

2. Meet with a loan officer

Your loan officer will look at your financial information and credit history and establish how much you quality for or can afford to pay for a home. She or he will help determine your estimated monthly payments and closing costs and will prepare an approval letter that shows sellers you are a qualified buyer. You will need a copy of this letter when you make an offer on a home.

3. Meet with your Realtor to create a home search plan

After you know what you can afford, talk with your Realtor about the kind of home and neighborhood you’re looking for, the amount you feel comfortable spending, and your ideal move-in date.

4. Look for homes

Now you’re ready to look at homes! Your Realtor will do customized home searches based on your wants and needs and will schedule property showings. Don’t be surprised if your idea of what you want changes after you see some homes.

5. Write up an offer

Once you find the home you want, you and your agent will write up an offer (called a Purchase Agreement). Your agent will present your offer to the seller and the seller’s agent. Sometimes the seller will respond with a counter-offer.

6. Possible counter-offers

Sometimes the seller will counter your offer based on price, closing date, personal property to be included with the sale, or other issues. Your Realtor will talk with you about how you might respond.

7. Do an inspection on the home

It’s a good idea to do your own independent professional inspection, which costs around $300. Your realtor can recommend good inspectors. Generally three things happen after an inspection: 1) The home looks great – move ahead! 2) There are some problems with the house, but you still want to proceed. You can try to negotiate a price reduction or ask the seller to fix the problems. 3) There are major problems and you want to cancel your offer.

8. Final acceptance of your offer after the inspection

If all goes well with the inspection, you and the seller will agree to and sign all terms of the offer. Your offer is now a legally binding contract.

9. Home appraisal

Your mortgage lender will require an appraisal of the property, which costs the buyer around $275.

10. Purchase homeowners insurance

Buyers are required to purchase homeowners insurance.  Don’t be surprised to find that you have to pre-pay the first year of your policy.

12. Final walk-through

Just prior to closing you and your Realtor will do a final walk-through of the property to make sure everything is in order.

13. Closing

The closing meeting usually takes about one hour. The buyer and the seller and their agents are all present. The final paperwork for the home is completed and signed, and the keys are handed over to you. Congratulations – you’re a homeowner!