Buyer Tips... because your home may be the largest investment of your life.

The Home-Buying Process

Step 1 – Agent Interview

The Real Estate agent you choose to work with is the most important element in determining the success and ease of your transaction. You will want an agent that will work for you full time, is experienced, and maintains good communication.

Warning: Some agents may ask you to sign a commitment to use their services. Be sure there is an escape clause if you and the agent don't "click". Also make sure you are signing only for a short period of time - long enough to find your home.

Some agents may ask you to pay part of their commission, if they don't like the commission offered by the seller. (The seller is the one who usually pays the agent's commission.) You should be aware that our agents are satisfied with the commission offered, and don't require our buyer clients make them pay additional fees.

Ask & understand what you are signing, and make sure you retain a copy of all paperwork.

Step 2 – Arrange Mortgage Financing

Meet with a Loan Officer to determine your price range and monthly payments, and ask for a pre-approval. I can recommend several excellent lenders for you to choose from.

Step 3 – Begin Your Home Search

The pre-approval establishes your home buying price range. Next, we review your needs and desires: location, style, size, number of rooms, etc. Your agent will then screen all of the available properties and provide you a list of properties that fit your criteria, as well as provide useful information on the home, taxes, and so on.

Step 4 – Picking The Home For You

With your list in hand, drive by each of them to eliminate those that won’t work, then we will provide full information sheets on those you have picked. Next step is to arrange to view the inside of the ones that interest you most. From these, we will see which home comes closest to fulfilling you needs.

Step 5 – Make The Offer and Negotiate For The Best Price & Terms

Once you have made your decision, we will research comparable homes that have sold in the area to help you determine a fair market value and offering price. Next we write a purchase contract with contingencies for your protection. Your offer is now submitted, along with earnest money, to the sellers. If they counter our initial offer, we can negotiate back and forth until both parties reach agreement.

Step 6 – Coordination Of Paperwork & Inspections

Once the contract is accepted and signed, we begin the process of working with your lender on financing, scheduling any needed inspections, scheduling the closing time and date, and start the legal work. Your lender will arrange the for an appraiser and a title company will search the title history, while you secure your home owner’s insurance. Your agent should coordinate with all parties and you should begin your packing.

Step 7 – Inspections & Home Warranties

I strongly recommend that every buyer conduct a home inspection. Inspectors may detect possible hidden problems and defects, and can tell us the condition of the home.  We can negotiate with the sellers for any material defects that are found. You should also consider a home warranty, if one was not offered by the seller. The home inspector's report and a home warranty will help provide you peace of mind.

Step 8 – Your Final Walk Through

Usually the day of closing, we do what's called the final walk through.  It is important to review the home one last time to confirm everything is in the same condition as when you wrote your offer, and appliances and personal property agreed to be left is still on the premises. By now, the sellers have already packed and vacated the property, so we can see what may have been previously hidden by furniture.

Step 9 – The Closing

A day or two before closing, you will receive a preliminary settlement statement to review, which outlines all the expenses involved. At the closing, your lender will secure your financing with the mortgage note and the seller  will transfer the deed to the property. You will need to bring a valid picture I.D. and money for the closing costs, down payment, and any other required fees. You review a final closing statement, and then sign your approval. The deed then passes ownership of the property from seller to buyer. The deed to the property and the mortgage will be recorded at the County Recorder's Office to become official.

Step 10 – Congratulations! You Get To Move In

If we have diligently, and successfully completely each of these steps outlined above, all that remains is for you to move your family into your new home.

 

This is a broad outline of the major steps in purchasing a home. There are many other details, deadlines, and commitments that must be done in a timely manner for your transaction to be smooth, and worry-free. That is our job. We will guide you comfortably through each step and advise you along the way. Our responsibility is to handle your transaction details, so you can focus on other priorities in your life.  We hope that you are so satisfied with our service that you will provide us with the greatest reward... the referral of your friends and acquaintances.
Copyright 2006 RE/MAX Hometown Realty