The handy infographic below does a great job explaining the basics of the home buying process.
I know many of the readers out there are tired of paying high rent and having that money go to someone else’s pocket, rather than their own investment. For whatever reason, you have been nervous about going into a bank to see what sort of loan you qualify for or reaching out to a real estate agent to see what options you might have. That’s totally understandable! After all, buying a home is one of the most important financial decisions you will ever make.
It pays to come into the home-buying process armed with as much information as possible.
Here are the basics:
- Meet with a real estate professional: Discuss the type of home you’re looking for, including style, price, and location.
- The Buyer’s Advantage: As the home buyer, your agent’s commission is paid by the seller of the home in almost all circumstances. This means your representation costs you nothing!
- Get Pre-Approved: You will need pay stubs, W2s, and bank statements. Knowing what you can afford is critical to a successful home shopping experience
- Search for Homes: The fun part! Your agent will schedule showings and help you find the perfect home.
- Advanced Search: Not all real estate websites are the same. Your real estate professional has tools and systems to ensure you see every available home that meets your criteria.
- Make an Offer: Your agent will prepare your offer based on the price and terms you choose.
- Negotiation and Contract: It may take a few tries to get it just right, but hang in there. You’re on your way!
- The Contract: In most cases the contract provides you with a timeline to obtain financing as well as time to inspect the physical condition of the home. Your real estate professional will inform you of all your rights and responsibilities related to the contract.
- Under Contract or In Escrow: You and the seller have agreed to the price and terms. The home is effectively held for you until closing.
- Final Details: Perform due diligence, order the appraisal, conduct an inspection, and review terms with the lender.
- Preparing for Closing: You will be finalizing your loan, reviewing documents, and discussing the findings from the inspection. Your agent will manage this entire process for you.
- Closing: This is the transfer of funds and ownership. A title company or an attorney typically acts as an independent third party to facilitate the closing.
I know it sounds intimidating, but that is what we are here for! Let our team take away the confusion, handle the headache, and make this the year that you celebrate the holidays in your own home!