10 Steps to Buying a Home
As a an Accredited Buyer’s Representative (ABR), I wanted to define the 10 steps for buying a home. Buyers should understand the process so you can make an informed decision on buying real estate.
- Find a Qualified Buyers Representative
How often you you purchase Real Estate?
In most transactions, sellers are represented by a listing agent who manages
these details for them and acts in their best interests. As a buyer, don’t you also
want someone to provide complete and honest representation in your real estate
transaction?
- Assess your Credit and Finances
Talk to a Mortgage Broker or Bank
You need to get Pre-Qualified if your getting a Mortgage.
Sellers require a pre-qual letter with the submission of any offer.
If your purchasing with cash, then you would need a proof of funds letter for
your purchase.
- Assess your wants and needs in a home
Talk to your Real Estate Agent and define your wants and needs in a home.
What are your requirements? Number of Bedrooms/Baths? Price Range? Pool?
- Search for your home with your Realtor
This is the fun part. Search for homes that meet your needs with your Realtor
Pay attention to the area, traffic, schools, etc… to make sure this is where you want to be.
- Negotiate Terms
With your Realtor the offer on any home will be negotiated. In today’s market the least amount of
terms the better. Lower inspection periods, Higher Ernest money down, shorter closing dates help your
offer stand out more and have a better chance of being accepted by the seller.
- Obtain a Mortgage if required
You already received your per-qualification letter from your broker, now follow through with the
rest of the mortgage process. The mortgage broker will ask you for additional documents and proof of
income along with employment verification. This process can be time consuming, so start on this as soon as
your offer has been accepted by the seller.
- Prepare for the closing day
As part of the closing process there has to be a closing agent involved. This would be a Title Company or
Real Estate attorney. Your Real Estate Agent should have a list for you to choose from if you don’t know
anybody in the area. The closing agent will be asking you for additional information, assuring clear title of
the property and acquiring title insurance for you.
You should also contact the electric company, water company, cable, phone and internet service providers
to schedule the hook up dates. Your Realtor should have the phone numbers for these companies in your area.
You should also schedule a moving company if required.
- Close
The signing of all the mortgage documents and title documents is referred to as “the closing” or “close of escrow” .
The closing agent will handle the closing and insure all documents are signed correctly and submitted to the city
or county for transfer of ownership to the buyer. Before attending the closing, the buyer should have a walk through
of the property with their Realtor to insure the property is not damaged and items that were part of the contract
are still in the home (stove, refrigerator, etc… ). The property is required to be swept clean in most real estate contracts.
- Move
The move date is here. Ensure all utilities are hooked up and working.
- Celebrate
This is left up to the individuals, everyone celebrates in their own way. Enjoy your new home.