Step By Step Guide On Buying A Home
In my previous blog posts I have talked about the costs associated with purchasing a home, what to prepare for, and other steps along the way. I have covered the steps of buying a home, what happens after you put an offer in and the steps that follow. This chart is a flow chart of the home buying process. This shows you the steps in order. I use this chart at my buyer consultations. It helps to have the whole picture in front of you. If you a visual learner, like I tend to be. This may be more helpful for you. Here are a brief description of the steps in the flow chart.
- Pick a realtor — That was easy, since you are reading my blog, give me a call (ha). Seriously though, you will be spending a lot of time with your Realtor, so pick someone you would like to work with and you are most comfortable with. Make sure you trust them, that is important.
- Pre Approval — This step is very important, can’t go any further without this. Having a pre approval ready to go before you go out searching for homes really puts you in a position to win. With inventory tight right now, and the market heating up, you don’t want to waste any time in the field. Once you find the house, let’s put in an offer ASAP. Without the pre approval letter, the sellers may not except your offer and by the time you area able to get a pre approval letter the house may have already sold. That is really how fast homes are selling for in some areas here in Richmond, Virginia.
- Needs Anayslils — This should be done at the 1–1 Buyer’s Consultation. You and your Realtor will discuss what exactly you are looking for and determine your NEEDS and WANTS. This helps to not waste your time. Once your Realtor has a good vision of what you want, they can send you only the properties that fit that.
- Select Properties — Your Realtor will normally set you up on a search or look at some properties for you. They will typically email them to you and then you can decide which ones you want to go check out in person
- View Properties — You have the list, now you and your Realtor will go view homes and determine the one you would like to put an offer on. This may take a few homes. Some fall in love with the first one, other people take a little more time deciding. All depends on your search criteria and what is on the market.
- Write an offer — Once you and your Realtor find the property you want to purchase, you guys will sit down and determine the price, closing date, etc. And then send the offer over to the seller.
- Negotiate Terms — This is the part we will negotiate their counter. It may be negotiating the price, closing costs, closing date, etc.
- Accept the contract — Once all is negotiated on, then we have a ratified contract. Remember, you haven’t bought the home yet, you have agreed to purchase the property. There are other steps to take now.
- Conduct home inspection — This is the part when you and your Realtor schedule a home inspection. You have the home inspected, get the report and decide what you would like the home owner to repair. Remember, the home inspection isn’t for cosmetic issues, such as paint color. It is for defects in the home and safety issues.
Now, the rest of the steps happen at the same time or one right after the other. You were pre approved and now you go through underwriting to get a final loan approval. They will have a survey if you wish, and your mortgage company will have the home appraised. Whomever you decided to close with will be doing the title search on the property to make sure there are no leans or encumbrances on the property. If title issues do come up, then the seller is responsible for clearing the title. Obtaining title insurance is completely up to you. I recommended you get title insurance because the cost really isn’t that much, but it is your choice. After all the funds have cleared and you signed off, you will officially be closed on your new home. CONGRATS! This process normally will take between 30–45 days.
Not every scenario step can be wrote in a blog post. I’m still learning everyday. Different situations can come up, and every transaction, something different comes up and I learn a little bit more. Your Realtor should explain these steps before you start the process and then explain them to you again as you go through them. Your Realtor should be making you feel comfortable with what is going on at every single step along the way. Constant and clear communication should be their goal to you.