The Buying Process
Buying a home shouldn't be intimidating. As your local expert and advocate, I will ensure you are equipped with the information you need to feel both confident and comfortable every step of the way.
Consult with a Realtor®
Choose a Realtor® who is both knowledgeable and trustworthy. Your realtor should sit down with you to discuss your needs and wants in a home before the home search begins. Complete my Buyer Questionnaire and let’s discuss to evaluate what you truly need (and want!) in your new home.
Select Your Lender
Contact at least two lenders, which I can provide to you. Avoid online mortgage loan inquiries because they may continue to pull your credit report more often than needed, which could affect your credit score.
Submit financial paperwork to your lender, based on what he/she requests. Your lender is your partner, so call directly with questions.
Get pre-approved for a loan to ensure you know how much you can borrow to purchase your new home. Sellers need to know you are financially ready to buy. A pre-approval letter must accompany any offer you make. For pre-approval, you may need the following...
- Your social security # for a credit check
- Last year’s tax returns
- Last year’s W2
- 2 most recent pay stubs
- 2 most recent bank statements
Begin Touring Homes
This is the fun part for most home buyers! Take time touring different homes and make sure to consider the neighborhood and surrounding areas to assess how they serve your lifestyle.
I will set up showings, explore your potential new home with you, and point out the pros and cons from a professional perspective, based on the needs and wants you have shared.
Submit Offer & Get Your Home Under Contract
Once you have found a home that you want to purchase, it’s time to make an offer! I will be there every step of the way to make sure you get the best deal possible. I will also help you develop the terms of your offer. You will need to consider purchase price, closing date, home inspection, financing contingencies and more. If the offer is accepted by the seller, the contract is ratified and you are in a binding contract with the seller.
Often, we will negotiate. There are many negotiation points in a contract. The most obvious is price, but other factors come into play. Terms are as important as price. Does your closing date line up with the sellers needs? Are you well qualified with a reputable lender? Can you move through the contingencies in a timely manner? Do you have the cash for you own closing costs or do you need to negotiate those with the seller?
Time is of the essence. Respond to counteroffers in a timely manner. Sellers are looking at how you will be to work with during the contract to close process.
Know what you’re dealing with. The side with the most information will do better. Is the seller motivated to close quickly? Have they transferred jobs and need to move? Have they rejected previous offers? I do the background research to help you craft an informed offer and counter offer.
Review Documentation
If you purchase a home with a Homeowner’s Association (HOA), you will receive documents about the HOA to review. The buyer has 3 days from the date of receipt to review the documents and terminate the contract without fault if there is anything about the HOA that makes the buyer not want to proceed. These documents should be reviewed carefully.
Complete the Loan Application
Loan processing usually takes 30-45 days.
Your Loan Obligation
Within 3 days...
- Provide seller with name and contact info for your lender
- Make application for the loan and pay for the credit report
Within 14 days..
- Request that the appraisal be ordered and pay for it (lender will order this)
- Secure home owners insurance
- Notify lender of intent to proceed and have available funds to close per loan estimate
We must notify the seller of the lender’s name and contact info and confirmation of these actions in a timely manner or be in default of the contract.
Home Inspections
A home inspection allows a licensed home inspector to identify and assess any problems, needed repairs, and provide the buyer with home maintenance tips. A home inspection contingency means an inspection is required before closing.
The general home inspection is paid for by the buyer and typically costs $400-$600, depending on the size of the home, and inspections requested. You can add a radon inspection for around $175. I always recommend a termite inspection as well which is around $35. If high levels of radon or termites are found, a buyer will ask the seller to remedy the situation before purchasing the home.
Steps:
- Hire a licensed home inspector. Meet the inspector at the end of the inspection if possible to review and discuss the inspection while in the home.
- Discuss the inspection results with the inspector. This is a critical step. As a licensed REALTOR®, I do NOT interpret home inspection reports. Don’t be afraid to ask your inspector for clarification or further information.
- Get the inspector’s advice on what to request to be repaired. You create a list of repair request items and the home inspector’s input is valuable.
- Provide a list of items to ask the seller to repair.
- The Seller either a) accepts, b) counters, or c) rejects and terminates the contract.
- Once you and the seller have agreed upon a list of repairs, we transfer the list to a Repair Amendment and both parties sign.
Home Appraisal
The buyer is not part of the home appraisal process. All you need to do is wait for the appraisal price to be reported to us by the lenders. Lenders require an appraisal to be conducted so they can receive an independent assessment of the home’s value before providing you a loan to purchase it. This safeguards you and the bank from paying more than the home is worth.
If the appraisal comes in at a higher value than the sales price, the seller is not privileged to this information. If the appraisal comes back at a lower value than the sales price, the “appraisal addendum” will simply ask the seller to reduce the sales price down to the appraised value. If the seller doesn’t agree, you can terminate the contract at no fault and receive an earnest money refund in full.
Confirm the Mortgage
At this point, your loan will go through underwriting and final approval of the loan will result in the release of the financing contingency. You may be asked again for appropriate documentation. The lender will notify you if this is the case.
The final loan approval will result in documentation detailing loan amount, monthly payments, and insurance. In-turn the settlement company will produce an ALTA statement detailing your loan and the amount of money you are expected to bring to the settlement table. This statement will need to be reviewed and signed 3 days before closing.
Final Walkthrough and Closing
This step occurs during the final week of the process and should take about an hour. After your mortgage is approved, I will confirm your closing date and time with the title company. Before closing, you and I will do a final walk-through of the home to make sure all agreed upon repairs have been made. At the closing, the settlement attorney will explain each line item on your Closing Disclosure / Alta Statement you were given a few days in advance of closing to review. You will also sign documents to complete the purchase of your new home.
CLOSING STEPS:
- Provide additional docs requested by lender
- Arrange in advance for utilities to be turned on in your name on day of closing (i.e., gas, water, electric, cable/wifi, alarm system, USPS mail forwarding)
- Review & Sign Closing Disclosure 3 days before closing
- Schedule wire transfer for closing funds (you may need to go to your bank in person to arrange)
- Do final walk-through
- Sign documents with the Title Company
- YOU BOUGHT A HOUSE!