BUYING A HOME
1. Get Ready for Home Ownership
What are your goals with this purchase?
How much can I afford and am willing to pay?
What is the ideal home within my budget?
2. Find an Agent
Any licensed agent can show a home listed by another. You are not required to contact the listing agent.
Who is the best fit for you? Do your research. It’s ok to meet with different agents to decide who’s the best fit for you.
Speak with your local friends, family and neighbors for recommendations.
3. Pre-Approval for Loan
“Pre-Approval” – a lender reviews your finances and credit to make an assumption of what you’re qualified to borrow.
The pre-approval process is very important to a buyer. Before making a serious offer on a home a buyer should have this process completed.
4. Find the Right Property
We all have different needs and wants when finding the right property. Once these are established with your agent the search becomes much easier. Things to consider:
Size and style
5. Make an Offer
Initial Offer: Discuss an offer with your agent while considering all details.
Negotiate/Accept Offer: The seller may accept your offer or present a counter-offer. Be prepared to negotiate or you always have the option to move on.
AFTER AN ACCEPTED OFFER
6. Loan Application
There are many loan options out there. It will be important to discuss what loan makes the most sense for you with your lender.
Completing the loan application will be require more specific documents to include tax returns, pay stubs, etc.
Your lender will walk you through the process and explain how your mortgage will work and any associated costs.
7. Inspections and Appraisal
It is strongly suggested to always perform a home inspection prior to a purchase. Different homes require different inspections a may include a general home inspection, well & septic, wood destroying pests, and radon gas.
Appraisals are used and required by all lenders to establish the market value of a home.
Homeowner’s Insurance – protects your home’s structure and your belongings in the event of destruction, such as a fire. Policies generally also include liability insurance which covers your legal responsibility for injuries and property damage to others caused by you or family members.
Flood Insurance – protects your home from damage incurred during a flood.
Home Warranty – an optional annual service contract that will cover the cost to repair or replace components of your home to include appliances and systems such as heating, cooling, electrical and plumbing.
This gives the buyer an opportunity to walk through the home prior to closing to make sure the home is in the same condition it was when they agreed to purchase.
You will need to contact all services providers to have utilities put in your name prior to possession.
Closing is the process of transferring ownership from the seller to the buyer and usually takes between 30 and 45 days to complete. This will depend on how smoothly all of the prior steps take place.
You will receive a Closing Disclosure a few days prior to closing which should be reviewed closely. This will show the final accounting of your loan to include interest rates, fees, mortgage closing costs, your monthly mortgage payment and the total of all payments and finance charges.
12. Deed & Mortgage Recorded
After the buyer and seller sign their closing documents and the mortgage has been funded the title office will have the deed and mortgage recorded with the auditor’s office.
Possession is when ownership is transferred from the seller to the buyer. This will happen after the deed has been recorded or per contract terms. Sometimes the seller will request some extra time in the home after the sale is completed in order to finish their move.