Buying a home is a part of the American Dream. It should be a fun and exciting time in a person’s life. However, it can often be a stressful process. When I work with clients, I try to make each step of the home buying process as easy as possible. With doing that, I like to educate my clients so they fully understand the process. To help understand what happens from start to finish, I broke down the 10 major steps of buying a home. The exact order of the steps might vary from transaction to transaction but the steps themselves typically take place in every real estate transaction.
1. Get Pre-Approved – Visit a lender and determine how much you can afford. To get pre-approved, a lender will perform a credit check and review your financial information.
2. Find A Great REALTOR® – You want a great REALTOR® on your side who will have your best interest at heart and make the buying process go as smoothly as possible.
3. Go House Hunting – Star in your own House Hunters episode to find that ideal home.
4. Make An Offer – Make a strong competitive offer that includes your pre-approval letter. Your REALTOR® will examine the market and do a comparative market analysis to determine a strong and justified offer.
5. Accepted Contract – After any back and forth negotiation with the seller, you reach an agreement!
6. Handling the Contingencies – Since buying a home is such a large financial commitment, there will be several contingencies/hurdles that you have to overcome in order to reach settlement. Some common contingencies include the home inspection and home appraisal. To learn more about other contingencies, click here.
7. Home Inspection / Inspections – A licensed home inspector will inspect the home and reveal any mechanical/structural issues with the home. Other inspections will be performed such as a well and septic system inspection and a wood destroying insect inspection.
8. Home Appraisal – The mortgage lender will require a licensed appraiser to appraise the home to identify its market value and to verify the lender's investment.
9. Securing the Mortgage – After a successful appraisal, all the loan paperwork is completed and approved.
10. Settlement – Final documents are signed, money exchanges hands, and the house is yours!
To learn more about each step, visit the Buyer’s Guide page in the Live section of this website where I describe each step in further detail. Come back next Wednesday for another great Real Estate Tip of the Week!
*Picture from @homes_ Instagram account