The Home Buying Roadmap
Start with an Agent and Loan Pre-Approval
The first step in the home buying process is to find an agent that you trust, someone who you are confident can guide you through the entire process with your best interest as their focus. Your agent can give you some recommendations on lenders and suggestions for getting approved, which is the next step. Being pre-approved has two primary purposes: 1) it gives you an idea of how much house you are able to purchase; and 2) it shows sellers that are you serious about buying.
Search, Offer and Negotiate
Once you and your agent have narrowed down the type of home you are looking for and you know how much you are able to afford, the next step is searching and viewing homes. For some, this part of the process is fun and exciting, while for others it feels cumbersome. The more you are able to communicate your needs and wants with your agent the more efficient your viewings will often be. Once you find a home that you can imagine living in and owning, it’s time to write an offer. Your agent will guide you to come up with an offer that is both in your best interest and is fair to the seller. There may be some back-and-fourth with an offer and a counter-offer, so this is where good negotiation skills come in to play.
Escrow and Pre-Closing
Once you and the seller have come to an agreement on terms of the sale, the escrow process begins. At this stage the house is is being held for you and is not available for purchase unless the deal falls apart. It’s during this stage that the title company will perform a background check on the home’s title and the lender will prepare the monies to be ready for closing. Also during this process is the buyer’s option to have a home inspection performed and the lender will have an appraisal done to make sure the home is worth the amount you are borrowing. If either of these come back with problems – the inspection finds material defects or the appraisal comes in below the sales amount – the buyer has the option to renegotiate with the seller or terminate the deal.
Closing
When all the above is finished, and any necessary repairs have been negotiated and completed and the financing is in place, you go to closing. This is where the lender transfer the money into the escrow account for disbursement and the ownership of the home is transferred. You get the keys to your new home!
Time is of the Essence
Throughout the buying process are many time sensitive deadlines that, if not met, could result in financial or legal ramifications. I advise all buyers to seek the assistant of a licensed real estate agent that has your best interests in mind, someone that can help guide you through process and help keep you protected.