How to Buy a House
If you did a Google search on how to buy a home, the results would be in the millions. The internet can be a great source for information; however the amount of information can be overwhelming. We hope that our website will help break down the home buying process so everyone can understand exactly what is involved.
When buying a home there is a basic timeline or set of processes that will remain the same from buyer to buyer:
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Sounds simple, doesn’t it? Far from it. Although there are some similarities, every home sale has slight differences that can make or break a deal. Items like the type of mortgage a buyer obtains to the contingencies associated with the sale need to be negotiated between both parties.
Once you have made the decision to buy a home, where do you start?
Step1 – Speak to your local bank and mortgage brokers to evaluate your finances so that you know how much home you can afford. Why torture yourself looking at homes you cannot afford. Be realistic. Getting pre-approved for a mortgage is more than having a good credit score. Start the process off knowing where you stand.
Step 2 – View properties available in your price range. Put together a list of wants and needs to pre-evaluate which homes are worth viewing. Narrow down your search by identifying the type of properties you like, features you desire and neighborhoods you would consider.
Step 3 – Make an offer. Even in a down market, quality properties will not last long on the market. If you find a property you like and want to buy, write up a solid offer to purchase. The offer is accompanied by a good faith deposit, which is refundable should the buyer decide not to move forward with the purchase.
Step 4 – Conduct a home inspection. The home inspection will evaluate the property in and out to help uncover any defects in the property.
Step 5 – Sign the purchase and sales contract. The terms and contingency associated with the offer are elaborated in the purchase and sales. An additional good faith deposit is required by the buyer at the signing of the purchase and sales. All deposits will be held in escrow and will be returned to the buyer at time of closing.
Step 6 – Final mortgage commitment. Once all the necessary paperwork has been submitted to the mortgage lender and the property’s title has been examined and cleared by the bank, the mortgage lender will issue a final loan commitment. This typically occurs 7-10 days prior to closing.
Step 7 – Closing and transfer of ownership. You are now officially a home owner!
The home buying process can take anywhere from 30 – 60 days, depending on the buyers and/or sellers as well as the loan conditions. Let Red Door Real Estate guide you through the home buying process. Start your home search today!
