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I’m sure you’ve heard it a thousand times: Buying a home is one of the most stressful yet rewarding things you’ll experience. But what does it actually look like? In this blog post, I’ve broken down the process into nine simplified steps.
1. Find an Agent: A good agent will be right by your side during the whole buying process, from the home search to closing and everywhere in between. I encourage buyers to interview a few agents. Ultimately you want to work with someone who is knowledgeable about the market, someone you trust to advocate on your behalf, and someone that is going to support you every step of the way. The truth is every agent isn’t a right fit for everyone, find one that is best fitting for you.
2. Pre-Approval: Loan pre-approvals, typically lasting 90 days, get you prepared to make an offer. I always encourage my buyers to shop around when it comes to lenders. Just like grocery stores, different lenders offer different options that may be more beneficial to you than another. You have typically 45 days to shop after your first mortgage credit pull without it affecting your credit. I advise my buyers to make sure their lender is reachable and responsive, this is critical. Not being able to get ahold of your lender can definitely cost us a deal. Ultimately a pre-approval shows the seller that you can indeed afford the home before accepting your offer.
3. The Search: When searching for a home, it’s just as important to think about how a home can accommodate you and your family’s happiness and needs, as its number of bedrooms and bathrooms. I like to have my buyers create a list, on one side list the nonnegotiable items and the other side list your wants, but not a complete necessity. Some things I like to get my buyers thinking about is:
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- Location; is being in close proximity to work or shopping important to you?
- Schools; is there a desired school district you want to be in?
- Working from home? Thinking about space for an office.
- Yard space; Do you like to host? Or looking for something more low maintenance?
From there I will create a customized search with the select filters that you have communicated to me. When a listing goes on the market that potentially matches your needs I will be notified immediately and will send it over to you if it is truly a fit. We can also communicate and you can send me properties you like via the Windermere app.
4. The Offer: You’ve found the home you want to put in an offer on. Your agent will work with you to craft the best and attractive offer. I highly encourage having your agent go over different potential terms and contingencies, and read over documents that will most likely be included in your offer, during your consultation. My negotiation skills will also help give you an edge.
5. The Counteroffer: The seller may come back with a counteroffer. In that case the back-and-forth continues until both parties come to an agreement.
6. The Loan Application: Once both parties have agreed on the terms of an offer, your lender can begin the underwriting process. During this process, you and I will be in constant communication with your lender and title and escrow to make sure we are on track. Your lender will also most likely be requesting documents and information from you as needed.
7. The Appraisal: Lenders want to ensure that the home is worth at least the amount they are lending you. This protects you from overpaying for the home. In the event that the appraisal does come in lower than your purchase price, you can either negotiate with the seller to meet at a price point, or come out of your pocket to pay the difference. This will depend on what was included in your offer.
8. Closing: Once your loan is approved, it’s time to deliver your down payment and any other closing costs. After signing the mortgage paperwork, the deed will be in your name and you’ll get your keys on the closing date after we have received recording numbers.
If you were counting, that was eight steps. The ninth is to reach out to me, so I can help make your real estate dreams a reality. Don’t wait to buy real estate, buy real estate and wait!
