5 Simple Steps to Buying a Home
The Buying Process
Buying a home is an important milestone, an asset that rarely loses value. With our expertise in the market, rest assured we can make this process stress-free.
From figuring out what you can afford, to choosing your home, making an offer, going under contract and preparing for closing day,
here are 5 steps to the home-buying process.
Loan Pre-Approval (1-2 Days)
Start the process with an idea of what you could potentially be approved for with a pre-approved letter from a mortgage bank/lender. Although it is not needed to search for a home, it is a quick 5 – 10 minute application that can give us an idea of where to start and have ready for when we do find a home to write an offer on.
Need help with the application? Want suggestions on what lenders to use? We can help here.
Home Search (1-3 Months)
Depending on what is available in the market, this can take as little as one day, to a couple months. There are many factors that make a home special. Take your time and enjoy the process of finding the right home. Our team would happily give suggestions based on your wants and needs as well as give you a tour of the house you are potentially looking at.
Make an Offer (1-3 Days)
Once you’ve found a home, the next step is to make an offer. We will ensure the house is priced correctly by conducting a Comparative Market Analysis (CMA) of relevant properties and proceed with writing a winning offer.
Under Contract (30-45 Days)
When both parties agree and sign the offer, you are officially under contract. A detailed list of steps can be found here, but the most important items to know are:
Executed Date:
The date that all parties agree and sign the contract. When executed, you will have 3 days to deposit earnest money to the title company (~ 1% of purchase price), signifying your intent to buy the house. An option fee (~.1% of purchase price) is also paid to the seller for the opportunity to terminate the contract if needed.
Option Period (5-10 Days):
Negotiated between the buyer and seller, this 5 -10 day period is used to determine whether the house is the right fit and allow you to terminate the contract. Use the option period to have the property inspected (usually costs ~450) to find deficiencies in the house. You may either accept the house as-is, renegotiate the contract, or terminate the contract and get your earnest money back if there are too many repairs necessary to move forward.
Appraisal (2-3 Weeks):
Once the option period ends we will instruct the lender to order an appraisal ( ~$500 and can be paid at closing), verifying whether the property is worth what you are paying for. If the property doesn’t meet value, you may terminate the contract (and get your earnest money back) or further negotiate with the seller.
Underwriting (3-4 Weeks):
The underwriting process requires the lender’s underwriter to review all loan documents. Started before the appraisal process and completed once the house appraises, this step may require additional documents to be sent in so that we can receive the official loan approval.
Homeowner’s Insurance & Utilities (5-10 Days Before Closing):
As we get closer to the closing date, plan to have utilities scheduled and Homeowner’s Insurance in place so that things run smoothly.
Review Settlement Statement (2-3 Days Before Closing):
2-3 days before the closing, your lender will provide a required disclosure, and the title company will provide the Settlement Statement that describes how much money you need to bring to the table and an itemization of what you are paying for.
Closing Day (30-45 Days After Contract):
The day is finally here to sign for your home! Bring a government issued ID and make sure proceeds are ready to be wired. If you are not able to be in town and would like to sign remotely, we can arrange a mobile notary to come to you.
