The Home Buying Process

Whether you are new to the home buying process or you are familiar with it, speaking to an agent who has helped many buy their first homes could be the difference between a frustrating experience and an enjoyable one.

You wouldn’t want to travel to a new country where they speak a language you don’t know without an interpreter, so for the same reason you’ll want a real estate agent to guide you through the home buying process. It is important to choose a real estate agent early in this process, one who has experience working with first time home buyers and one who completely understands your goals.

Your real estate agent will work with you, review your unique situation and help you decide if you can afford to buy a home.

If you will need a mortgage loan to purchase a property, you must first find the right lender.

Once you find the right lender, review your resources and find the right program for you.

All this means is that a lender has taken a preliminary look at you and decided that you will most likely be able to receive the loan you want.

Meet with a tax advisor to determine what your likely tax savings will be.

Knowing these details will give you an accurate picture of what size house you can afford and what price range you should look at.

Once you’ve decided that you can afford to buy a house, here are some valuable steps you should take:

• Think about what areas you want to live in and what type of house you’d like to buy.
• Prepare to go house hunting with your agent.
• To save time and money, review “23 Insider Tips – How To Avoid Costly Mistakes When Buying A Home”. Get your free copy here.
• Meet with your real estate agent to determine a proper strategy to use when searching for a home including the specific details you would like to see in your future home and neighborhood.
• Look at houses and find your dream home.

When you’ve found the house you want to purchase, the next step is to make an offer. Here’s what you should expect from this stage of the process:

Your real estate agent will meet with you, and based on your direction, will write up an offer on the house you’d like to purchase. This includes:

• Overall price
• Terms such as inspection time frames, the date when the property will change hands, possession date, etc.

Your real estate agent will present your offer to the seller’s agent who will then discuss the conditions with the seller.

From there, they will decide to accept the offer, reject it, or make a counter offer.

If there’s a counter offer, you can decide how you’d like to respond. Remember, your agent will listen to you and advise you on the best action to take.

Once you decide how to respond, your agent will respond to the counter offer. This is all part of the negotiation process.

When there is an agreement, and all parties have signed the contract, you will have what is called in the real estate business, a “fully executed contract.”

This is a very exciting step when purchasing your home.

Once you are ‘in contract’ you can proceed to get formally approved for your loan by your lender.

Before the house officially changes hands, or “closes escrow”, you will have the opportunity to have the home inspected.

It is wise to have a professional inspector see the house.

If there are any issues discovered at this time, you can either further negotiate the terms on the contract or, if no agreement can be made, cancel the contract.
Once you are “in contract,” your loan documents, contract, and other legal paperwork are delivered to what is called an escrow company.

Escrow companies deal with large transactions and act as a neutral middleman.

Once the escrow company receives the paperwork, they will contact you to arrange for you to come in, review and sign.

Your lender will then deposit the loan money with the escrow company to be transferred to the seller upon close of escrow.

On the close of escrow date, a deadline agreed on by both parties, the escrow company will file the necessary paperwork with the county in order to legally transfer the title of the house.

As soon as the title transfer is official, the escrow company will pay out the loan proceeds and down payment to the seller, effectively paying them for your house.

Then, all you have to do is move in! The house is yours!