Buying A home
Buying a home is nervewracking, scary, confusing... you get the idea. Scroll down to see how the home buying process works and take some of the scariness out of the process.
Buying a home is nervewracking, scary, confusing... you get the idea. Scroll down to see how the home buying process works and take some of the scariness out of the process.
The first step in the home buying process is to get pre-approved by meeting with a mortgage lender. This lets you know what you are qualified to purchase.
Find a LenderNext you will want to see available properties for sale based on what you are pre-approved to purchase. ListZero.com makes it easy. Just select an area you are interested in and then use the Advanced search to fine tune your search results.
You may also want to speak with a realtor. They take a lot of the hassle out of the home buying process, and as a buyer you typically don't have to pay them for their services. The sellers generally cover the realtor commissions.
Look for a home Find a realtorOnce you've found that perfect house, it's time to make an offer. Usually the sellers will require earnest money, or a good faith deposit, in order to confirm an accepted contract. You will need to contact a settlement or title company in order to keep that money on hold until you finalize the deal.
Find a title companyWithin the offer there are generally deadline dates. These are there to protect your earnest money, or good faith deposit. Some of the deadlines are the due diligence, or time allotted to investigate certain aspects of the property like the title commitment (are there any liens or ownership issues). This is typically done by a title company.
Another part of the due diligence investigation is the average cost of utilities which can be verified through the different utility companies. The condition of the home is a big part of the due diligence also, and is why you may want to have a home inspection in order to verify that the property is in good condition.
Find an inspectorThe financial deadline, or time granted to secure financing, is an important date to remember. The bank will have an appraisal done to verify that the property is worth what they are about to lend. Your mortgage lender will also have underwriters go through the appraisal and loan documents to make sure everything is in order.
The final walk-through is another date to remember. It is the last look to make sure the property is still in the condition it was when you first saw it, or to make sure required repairs have been done.
The last date to consider is the closing or settlement date, the day everything is finalized. Once again, the signing is usually done at a title company. In most cases you will not receive the keys until the loan has been funded and the property is recorded.
Rent those moving trucks and guilt your family into helping. It's time to begin the newest chapter of your life in a brand new home.