Buying a Home


Sometimes you just want the facts. Here are the basics to the home buying process step by step.

#1. Know what you want. 

Make a list of the pros, cons and tolerants you can live with in a home. Get detailed and be more specific than just number of bedrooms and bathrooms. Think lot size, yard, location, trees, landscape, layout, basic lifestyle and needs.

#2. Get pre-approved.

If you are obtaining a home loan do this before looking at homes. You don’t need to know the exact home you are purchasing which is why lenders can offer a pre-approval letter stating how much home you can actually afford, then you can look for homes in that price range.

Read more: How Much Home Can I Afford?

#3. Make an offer.

Once you find a home you love, make an offer. You will need to accompany the offer with the letter of pre-approval and a copy of your earnest money check. This check should be about 1-3% of the purchase price of the home but may actually be as little as $500. Sellers like to see how much  you are willing to risk on the home in order to determine how serious you are about buying a home.

#4. Wait for a response then negotiate.

Once you have submitted the offer, the sellers can either accept, counter offer or reject. From here you both find a price and terms you can live with and sign off on the initial offer.

#5. Inspection.

Once an offer has been accepted, the offer goes on to an inspection and your earnest money is deposited. You are free to use any home inspector you wish but may ask your agent for referrals. It’s best to be present during the inspection and ask questions so you know as much about your property as possible.

#6. Return the Inspection Contingency.

Return the contingency to the seller with any requests or repairs. If there is nothing requested, the inspection contingency is accepted and the deal moves on. If there are requests, there is a negotiation again. The seller can accept all requests, negotiate for something different or reject the report. IF so, it’s up to the buyer to continue the transaction or terminate at this point. If the seller agrees to correct issues, all parties sign off on the inspection and the deal moves on.

#7. Order title, appraisal and home owners insurance.

The escrow will order a title search and the lender will order the appraisal but it is up to you, the buyer, to order the homeowners insurance or transfer existing insurance to the new property. Escrow will require this information and addition information when necessary so it’s important to answer all questions when asked.

#8. Walk-Through

After all the inspection requirements have been met it’s best to conduct a final walk-through on the property to make sure everything has been taken care of and the property is left in livable conditions. If there is an issue at this point, don’t sign anything  until it’s handled.

#9. Escrow will call for final signing.

Sometime after the appraisal, all the documents will be gathered for final signing. The seller will sign first and then the buyer. You will need identification at signing and make sure you are ready to sign your name about 50+ times. There is a lot of paperwork and if  you read something you don’t understand be sure to ask. The escrow agent is there to help and answer any questions you may have. You may also be asked to bring your down payment and/or closing costs. The escrow agent or lender will inform your of all these documents ahead of time.

#10. Closing and Keys

Only after the documents have been recorded with the county and final monies have been disbursed can you receive your keys. Once this is done, your transaction is closed and you can move in! Congratulations!

If you’re ready to get started on this path feel free to browse our site or call us for more information. We would love to help you find exactly what you’re looking for in.