Home Buying Guide - Step by Step
1. BUYER AGENT - Hire a Buyer's Agent to assist you and oversee all of the tasks below:
2. THE MORTGAGE LOAN - If you are getting a loan to buy your new home, it is imperative that you PRE-QUALIFY with a Mortgage Company BEFORE you look for a home. Some seller and some markets require that a buyer have a pre-qualification or a pre-approval letter from a reputable mortgage company. Being pre-qualified or pre-approved also gives YOU an estimate of how much money you will be required to pay at closing. Once you make an offer on a home, you may pay an option fee, deposit earnest money, and start paying for your inspections. You may risk losing your option fee and inspection fees if you do not get your loan. PRE-QUALIFY before you BUY! Your Buyer's Agent should assist you in finding a lender and obtaining a home loan.
3. FIND YOUR HOME!! Get with your Buyer Agent and house-hunt!! Your Buyer Agent should be available to show you homes, advise you as to market values & trends, locations, and making an offer to purchase.
4. YOU'VE FOUND YOUR NEW HOME - it is time to make on offer to purchase. Your Buyer Agent should write the contractual offer to purchase, in accordance with the terms you and your lender set. Your Buyer Agent should present your contract and help negotiate your purchase. Once the contract is negotiated and signed by all parties, you are on your way!
5. EXECUTED CONTRACT - Your Buyer Agent will take a copy of the Executed Contract, and your Earnest Money Check to the Title & Abstract Company where your home purchase will close. Your Buyer Agent should maintain close contact with the title co to ensure that your home purchase goes smoothly and closes on time.
6. TAKE CONTRACT TO LENDER - Your Buyer Agent will take a copy of your executed contract to your lender immediately so that they may start processing your loan. Both you and your Buyer Agent should maintain close contact with the lender to ensure that your home purchase goes smoothly and closes on time.
7. APPRAISAL/SURVEY - Typically, your lender will order the appraisal and the survey. Your Buyer Agent should verify that this is done in a timely manner and no issues are found.
8. INSPECTIONS - Inspections need to be ordered IMMEDIATELY. Your Buyer Agent will assist you in locating and choosing inspectors and ordering your inspections. Inspection reports will be delivered to you and your Buyer Agent for you to review once the inspections are completed. If applicable, your Buyer Agent should negotiate any necessary repairs.
9. INSURANCE - You will need to get insurance quotes and choose your Homeowners' Insurance Company. Your Buyer Agent should provide you a list of insurers and assist you in reviewing and understanding the insurance quotes and help overcome any insurability issues.
10. PRIOR TO CLOSING - You should begin scheduling the transfer/connection of your utilities and schedule movers 1-2 weeks prior to closing. Your Buyer Agent should provide you with a list of local providers and assist you with scheduling.
11. CLOSING - Closing is the actual date and time that you go to a Title Company and sign your closing documents for the loan and the purchase of the home. Your Buyer Agent should accompany you to your closing.
12. OCCUPANCY - Your Buyer Agent will notify you of "funding" and give you the keys to your new home.
13. QUESTIONS?? ASK, ASK, ASK and remember that the only DUMB question is the one you did NOT ask! Your Buyer Agent should be able to answer all of your questions or refer you to someone who can. Your Buyer Agent should be your teacher, your ally, your mentor, your friend.
**Note that the above information is written by a TEXAS Realtor. Law and customary procedure across the US will vary state to state. This above Blog is written as an informations GUIDE only. Please consult with your buyer agent in your area as to customary procedure in home purchase.
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