The Home Buying Process
Congratulations on your decision to purchase a home. Purchasing a home can be one of the most exciting and rewarding times in a person’s life. The following information was designed to provide you with a basic understanding of the home buying process.
1.) Secure Your Finances
The first thing you want to do is determine how much you’re comfortable spending, and how much a lender will loan you. It’s possible to pre-qualify for a mortgage online, however contacting a loan officer locally is generally your best bet. They’ll be able to explain your options based on your particular circumstances, and provide you with a written preapproval. A breakdown of the most common types of financing can be found on our Finance Your Home section.
2.) Find an Agent
Once your finances are in order it’s time to start looking. Choosing the right agent may be the single most important factor in the entire process. You’re going to depend on your agent for their communication and negotiation skills, along with their ability to head off and solve any potential problems that may arise. An agent acting on your behalf as a buyers agent could prove invaluable in the home buying process. Buyer agency and other relationships in the real estate transaction can be found in our Agency Relationships section.
3.) Making an Offer
It’s only a matter of time until you find just the right home. It could very well be the first home you look at, or it may take some time. However, once you find that home and would like to make an offer, there’s a few things to consider. Your agent will be able to address all of your concerns. How much should I offer? What contingencies should we put in the offer? When should we close? Do I need to have the property inspected? These are all valid concerns. It’s important to be honest and open with your agent in order for them to best understand your concerns. Whether your agent is acting as a buyers agent, a sub agent, or a dual agent will determine their response to your questions. Please note that regardless of the agency relationship you have with the agent drafting your offer, they have a legal responsibility to treat you fair and honest, and to disclose any adverse facts that they have knowledge of.
4.) Satisfying Contingencies
Most offers will contain contingencies. The most common contingencies are… financing, a home inspection, an appraisal, a well inspection and safe water test, radon levels, a home sale and numerous others. There may be some issues that arise as a result of these contingencies. Your agent will assist you in working through the details to ultimately waive these specific concerns.
5.) The Waiting Game
After a whirlwind of activity it’s now time to sit back and catch your breath. Although it will seem as if nothings happening, there’s plenty going on behind the scenes regarding your financing, obtaining free and clear title of the property and preparing the necessary documents required to close. Take this time to start packing and choosing the paint colors for your new home.
6.) The Closing
The day you’ve been waiting for is drawing near. About a week or so prior to the closing your lender will provide you with a detailed breakdown of all of your charges, the terms of your mortgage, any prepaid charges required for your escrow, and the total amount you’ll need to bring to closing. Your lender will let you know when and where the closing will take place. Be sure to check with your lender if a cashiers check will be sufficient, or if the funds will need to be wired. The actual closing will take about an hour. Congratulations!
Contact Jeff Moglia for a no obligation consultation to discuss all of your real estate needs.
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