The Ultimate Buyer's Guide

The 7 Steps to Home Buying!

I know as a buyer (especially you first-timers) the process can seem really overwhelming and daunting. I wanted to take some of that uneasiness off your chest so you know exactly what the process will look like and what happens next.

1. Get Pre-Approved

In order to submit an offer, we will need the pre-approval letter from your lender. In addition, this will help us determine what you can afford based off your income/debt ratio and what range we should be looking in. If you need a lender, I have a FANTASTIC one that is great for first time homebuyers and he will walk you through the process and make it less stressful. Let me know if you would like to chat with him!

2. Start the Property Search

This is the fun part! We will get together and go over your wants, needs, must haves, and NOs. Then I will begin to pull properties and send them your way. Ones you like, we will schedule to go see and find your dream home. Be patient with this process. Pictures can be deceiving. Wide lens cameras and good lighting can make any house look great.

3. Make an Offer

Once you find “The One”, we will submit an offer on the house to the seller’s agent. Thus begins the negotiation process with the other side. All items are negotiable. Within 3 days of the contract being accepted, you will need to take the earnest money check (1% of offer price - goes towards closing costs) to the title company and the option period check ($100 - goes towards closing costs) to the listing agents office.

4. Option Period

Once the seller has accepted the offer, we move into the option period. This is typically 7-10 days. This time allows you to get the basic home inspection done, as well as any other inspections you may want (roof, foundation, termites, etc.). I have contacts for this if you do not have your own and I can do all the scheduling for you! After we get the inspection back, we will make a list of repairs you would like made and submit to the seller’s agent. This is a negotiation process. Once everyone comes to an agreement, we are good to move forward. If you would not like to move forward or not all parties can come to an agreement, you will only lose the $100 option period check you submitted with the offer and the deal will be terminated.

5. The Appraisal

After we have cleared the option period, the lender will order the appraisal. This will tell us what the house is worth. This will take about a week to get it scheduled and get the results back. If the appraisal comes back over offered price, all is good and we move forward to the waiting period. If it comes back under the offered price, we will ask the seller to come off the price and match the appraisal price. If they do not come off that price, we have two options. Either you, as the buyer, bring cash to the table to bridge the offered price from the appraisal price (this means essentially you are paying over the value of the house) or we terminate the contract. Usually the seller will come down to appraisal price. They do not want to start the process all over and even if they did, they would have to find a cash offer because they would run into the same problem.

6. Waiting Period

This is typically the last 2 weeks of waiting. This is when the lender will ask for last minute documents as the loan goes into underwriting. Other things that happen in this time period are as follows; we schedule a time for closing, myself or the title company will order your home warranty, the title company will order the survey (if there is not one already), you will need to finalize your homeowners insurance and send to the lender.

7. Closing

WE MADE IT! Closing will take about an hour to sign all the documents. Ideally, the seller will sign first and then the buyer after. After we sign, it takes about an hour or so for the loan to “fund” and then you get the keys to your new home!

Don't let this process stress you out, let me help! Regardless of if you're just browsing around and have some time or you're ready right now, I am happy to help find your new dream home!