How Does the Home Buying Process Go?

Are you a first time home buyer or maybe a buyer that purchased a home 10 - 15 years ago?  Do you know what the process is now for purchasing a home?  With all of the changes that have taken place over the last year, here is a guideline to help you understand what is involved and what will happen. 

Most people start off by looking for homes that are available in their area on the internet.  There are many different websites that have information available, but a real estate agent is going to have the most updated information from his or her Multiple Listing Service.  A Multiple Listing Service is a tool for the real estate agent to look up homes in your area that are currently for sale, are pending or have sold.  Although you can get a lot of the same information from the various websites available, the information will not be "real time" and when you call about a home, it might actually already have a contract on it or it may have been sold or taken off the market.  The real estate agent will be able to give you the most current information.

When you have determined that you are really ready to get out there and find yourself a new home, here is a guideline for you:

1. Have an interview with a Realtor (R) to let him or her know what you are looking for.
2. Get together with your loan officer for pre-approval, if you have not already done this prior to meeting with your agent.
3. Once you have pre-approval with your lender, you and your agent will begin to find homes.
4. Find a home that you want and make an offer.
5. Negotiate the offer.
6. Negotiations are complete and contract has been accepted.
7. Contract is taken to title company or attorney's office with the earnest money deposit and receipted by officer of company.
8. Copy of contract provided to your lender.
9. Buyer hires inspector for home inspection.
10. Lender orders appraisal, title work, survey, tax certification and flood certificate.
11. You begin to get your homeowner's information together.
12. Lender approval conditions come in and you provide any documentation needed for final approval.
13. File goes to underwriting (at financial institution).
14. After underwriting review additional verification and documentation may be needed.
15. Loan approval comes in and you are given the "ok" to close.
16. Closing instructions and papers are provided to title company.
17. Title company/attorney's office prepares final loan figures and the HUD - 1.
18. Realtor or loan officer will call with final figures and amount you need to bring to closing.  Funds must be in the form of a cashier's check.
19. Meet at the title company or attorney's office to sign loan documents.
20. Signing is complete, loan is funded, you get your keys and start to move in!!!

Although some people choose to look for a lender after they have found a home they want to make an offer on, this is not considered the best way to purchase.  You will be in a stronger negotiating position if you are able to present a pre-approval letter along with your offer.  This lets the seller know that you are very serious about the purchase of their home and that you have already started the process to purchase.

Buying a home is an exciting time in your life and we want to do what we can to make it go as smooth as possibly...sometimes you may hit a bump, but your agent will be there ready to help out!