The 8 Step Home Buying Process
From Start to Finish
Don’t let the home buying process stress you out or overwhelm you. By knowing what you expect, you can be assured that you are doing everything right every step of the way. Here is what you need to know.
Step 1: Get Your Pre-Approval or Proof of Funds
You want to know how much you can borrow, because that will tell you a lot about how much you can afford in a house! Do a little shopping and find a vendor that you’re comfortable with at a rate you’re comfortable with. I’ve worked with some fantastic lenders in the past, so please feel free to contact me for a few that may be able to help.
Step 2: Talk to Your Attorney and Real Estate Investment Advisor
If you’ll be holding your property in a trust or purchasing the property as an investment or through your business, you’ll want to talk to an attorney and/or an investment advisor who understands investing in individual properties. This is most likely NOT going to be the financial advisor who handles your stocks, bonds and mutual funds. You want someone who is experienced in real estate investment in individual properties (not REITs) and won’t mind explaining things
Step 3: Search for Homes
Once you’ve determined your “must haves” in a property, start searching around. You can use get started at our website at any time, and reach out for me to lend you my expertise in identifying properties that will be just right for you.
Step 4: Determine Your Offer Price
Once we’ve found the right home, it’s time to make an offer. I’ll review all of the available market information I have at my disposal to recommend a competitive, substantiated offer price. The negotiations will likely go back and forth a few times, and I’ll work hard to make sure we negotiate the best price possible.
Step 5: Make an Offer
An offer involves much more than the purchase price. You are offering to enter into a contract with the seller that is binding on both of you as to all of the terms in that contract. You will want to read through the terms on your own, and have your lawyer explain any terms that you don’t understand or want clarified. The contract will also likely contain contingencies, such as your ability to get financing, the home inspection results being acceptable, and perhaps your ability to sell your other home first. In addition, you will need to decide on the amount of your earnest money deposit. This amount can vary, but 1% is usually a good intention to the seller that you intend to proceed in good faith.
Step 6: Due Diligence Period
After both parties are happy with the contract and your offer is accepted, you’ll be “under contract.” Be prepared to cut some checks at this point. You don’t go to closing before you’ve taken care of a few issues, including your home inspection, and possibly other inspections. If the inspections uncover problems with the home, we can ask to have the seller correct them or negotiate the repairs into the purchase price.
Step 7: Closing
Make sure to bring everything to the closing that the title company has instructed, including a picture ID. If you’re making a down payment, you’ll probably need a certified check. It’s a good idea to bring a few blank checks along also in case there are any miscellaneous loose ends. At the end of the closing, you’ll be transferred ownership of the home. Congratulations!
Step 8: Spread the Word
A referral from you is the highest compliment I can receive!