The Home Buying Process

  1. Decide to buy. there are many good reasons for you to buy a home and wealth building ranks at the top of the list because of equity buildup, value appreciation, and tax benefits. There is never a wrong time to buy the right home. All you need to do in the short run is find a good buy and make sure you have the financial ability to hold it for the long run. The best way to get closer to buying your ultimate dream home is to buy your first home now.
  2. Hire your agent. The typical real estate transaction involves at least two dozen separate individuals – insurance assessors, mortgage brokers and underwriters, inspectors, appraisers, escrow officers, buyer’s agents, seller’s agents, bankers, title researchers, and a number of other individuals whose actions and decisions have to be orchestrated in order to perform in harmony and get a home sale closed. It is the responsibility of your real estate agent to expertly coordinate all the professionals involved in your home purchase and to act as the advocate for you and your interests throughout. A Buyer’s Real Estate Agent educates you about your market, analyzes your wants and needs, guides you to homes that fit your criteria, coordinates the work of other needed professionals, negotiates on your behalf, checks and double-checks paperwork and deadlines, and solves any problems that may arise.
  3. Secure financing. While you may find the thought of home ownership thrilling, the thought of taking on a mortgage may be downright chilling. Many first-time buyers start out confused about the process or nervous about making such a large financial commitment. From start to finish, you will follow a six-step, easy-to-understand process to securing the financing for your first home.
  4. Find your home. You may think that shopping for homes starts with jumping in the car and driving all over town. And it’s true that hopping in the car to go look is probably the most exciting part of the home-buying process. However, driving around is fun for only so long – if weeks go by without finding what you’re looking for, the fun can fade pretty fast. That’s why we say that looking for your home begins with carefully assessing your values, wants, and needs, both for the short and long terms. An initial consultation with your REALTOR® will make sure your answers to important questions are used to define your search.
  5. Make an offer. There are three basic components of an offer: price, terms, and contingencies. The right price to offer must fairly reflect the true market value of the home you want to buy. Your agent’s market research will guide this decision. Terms refer to other financial and timing factors that will be included in the offer. Contingencies are terms that must be satisfied within stated time frames.
  6. Perform due diligence. From the time your offer is accepted to closing, it is your responsibility to work with your agent and mortgage professional to meet all timelines regarding inspections, obtaining homeowners insurance, and providing any additional loan documents as requested. You must also stay in control of your finances and make sure your closing funds are available and delivered on time to the title agent. Failure to meet your obligations of the purchase agreement could result in the loss of your escrow deposit, so obeying the timelines is crucial.
  7. Close. Just before you can cross the finish line at closing your lender will order a survey, appraisal, and title search. They will also do a final check of your credit and finances to ensure you still meet the lender’s requirements. Your agent will keep you posted on how each step is progressing. On closing day, with the guidance of a settlement agent and your agent, you’ll sign all the necessary documents and become a new homeowner!
the Home Buying Process