Have you ever considered buying a house but didn’t know where to start? This post is for you! Check out this graphic to see the flow of buying a home.
This a very simple breakdown of the home buying steps. There are many more steps besides these listed in the graphic. The steps above are the major milestones in the home buying journey and the most important to a home buyer. Now, let’s break down these steps!
Step 1- Meeting with your Realtor! This is the most important step in the process. Once you meet with your Realtor, they can guide you through all the other steps. If you don’t have a Realtor, give me a call. I can help! Meeting with a Realtor will set the expectation and inform you of what to expect for the rest of the process.
Step 2 – Meeting with a lender and get a pre-approval. This step will be the largest step in guiding your home search. During this meeting, you will establish your budget and estimated down payment. These are two of the biggest factors when searching for a home. A lender can inform you of what to expect with the financing process. If a lender is unable to get you approved, they will guide you on what to do so you can purchase a home in the future. Sometimes it can take just a few months of hard work and saving to get you ready to purchase a home.
Step 3 – Starting your home search online. This is a great time for buyers to realize the type of home they can expect for their budget. Buyers will also learn the difference between active listings, pre-foreclosure listings, and contingent properties. It’s a little frustrating for buyers when they realize there are hundreds of properties listed on the web but only a fraction of them are active MLS listings. Your Realtor can guide you to the best home searching apps and websites. This way no one is wasting their time researching properties that aren’t actively for sale.
Step 4 – Seeing homes in person. Once you start to figure out the homes you like and don’t like online, we can start to schedule in-person showings. Some buyers fall in love with the first home they see and others see 20 homes before they find the perfect one. In today’s market, we are not in a position to think about a home for several days. Once you find the one you love, you need to move fast.
Step 5 – Making an Offer. This is where it gets real! You found the home you love and now you move forward with making an offer. I often hear from buyers “what do you think the sellers will take?” There is no secret formula to know exactly how much a seller will take. Your Realtor will analyze market data and comparables for that specific property. Your Realtor will make a recommendation on a good offer price but that doesn’t mean the seller is guaranteed to accept your offer. For your best chance at getting your dream home, make your strongest offer first.
Step 6 – Agreeing to terms with the seller. Once the seller has received your offer, they have three ways to respond: accepting your offer as-is, making changes to your offer (a counteroffer), or rejecting your offer. If your seller decides to make changes to your offer, it is then your job to review the changes and either agree or counter offer again. Once you both agree to every item on the contract, you have a fully executed contract. This means your new home is officially under contract.
Step 7 – Appraisals and Inspections. Now that we have secured your home, we move forward with your inspections. Common inspections for home buyers are a home inspection, well/septic inspection, and termite inspection. Once you performed your inspections you can either chose to live with any defects in the home, ask the sellers to fix it, or ask for a credit in lieu of repairs. Once all the inspections issues have been addressed, your lender will order an appraisal. The purpose of an appraisal is to verify the home you are purchasing is worth what you are paying for it. If you are a USDA, VA, or FHA home buyer, your appraisal is a bit more detailed. In addition to confirming value, the appraiser will look for safety risks in the home.
Step 8 – Closing Time! All your hard work and sleepless nights have paid off! You’ve made it to the closing. This is when the property is legal conveyed to the seller to the buyer. You will walk out of closing with the keys to your home.
Thanks for stopping by and reading this post!
Xo
Dana Hathorn, Realtor, PSA, CB Mentor, Pre-License and CE Instructor
Coldwell Banker Real Estate Group
Be Sure to follow me on Instagram @dealwithdana
