You need (or want!) to buy a house…now what??? There are a few important steps that will make the home buying process much easier. I will go into each step in more detail in future blog posts.
Find a Great REALTORⓇ
The best place to stay looking for a real estate agent is by asking your friends and family who they know. If your friends and family are happy with their agent, chances are you will be too! Moving from out of town can provide a challenge since you do not know anyone. Ask an agent you know if your hometown if they know anyone in the town where you are moving. Also, look online at agent’s websites.
Get Pre-Approved
This step should be taken PRIOR to looking for homes. The pre-approval process can take a few days to be completed. You do not want to miss out on a home you like because you cannot write an offer. Sellers like to see a pre-approval letter with offers.
Should you be paying cash for your new home, get a proof of funds letter from your financial institution.
Buyer Consultation
Meet with your REALTORⓇ for a Buyer Consultation. A good agent will ask lots of questions and whittle down what you want in a home and what you need in a home. While you have probably seen MANY homes online through different sites, not all of those sites are updates regularly. Your agent can provide the most up-to-date information.
Length of Time
The time it takes clients to find a home largely depends on the client and the amount of homes fitting their criteria that are available at the time. I have had clients find their home on their first trip looking at homes but most take several weeks or months to find the right home.
The closing time varies depending on what type of loan you are using or if you are paying cash. I have had closings take place in 2-3 weeks when clients are paying cash. Typical loans take 30 days to close while government loans (FHA, VA, USDA and SC Housing) can take 45-60 days to close.
View Homes
Once your agent knows what you want in a home, you can schedule appointments and start looking. Take notes as you are walking through homes. They are start to look the same after a while! Also, be sure not to say anything “too positive” or “too negative” while previewing homes for sale. You never know if the seller may have cameras and/or recording devices in or around their home.
Write an Offer
Offers come with a lot of paperwork. Be ready to discuss offer details with your agent and sign several forms.
Money Needed Upfront
While the bulk of the money you need to purchase a property will be paid at closing, some money is needed at the time your offer is accepted or shortly after the contract is accepted.
You will need an earnest money deposit (sometimes called a good faith deposit). These funds are held by your closing attorney’s office until closing when they will be credited back to you. Should you decide to terminate the contract prior to closing, the Buyers and the Sellers would have to agree to release the earnest money.
The home inspector will require payment prior to releasing the home inspection report. The cost of the home inspection will vary depending the service level you choose.
Your lender will collect funds for the appraisal prior to being able to order the appraisal for you.
While you do not have to pay your due diligence termination fee upfront, you need to have this money available should you decide to terminate the contract during the due diligence time.
Due Diligence Period
The due diligence period is your time to investigate the home more thoroughly, check on insurance, do any inspections, etc.
Appraisal
Your lender will order the appraisal. An appraiser will visit the property to determine a value of the property you are purchasing. This number should meet or exceed the purchase price on the contract. Should the value not meet or exceed the purchase price, you will have a few options.
Title Search
Your attorney’s office will conduct a title search to make sure the Seller conveys the home with a clear title and without any liens.
Closing Day
Finally…all your hard work is finished! You sign your closing paperwork and get the keys to your new home!!!
The home buying process involves many moving parts. These steps are only a highlight. I will go into much more detail in future blog posts. Until then, you can contact me with any home buying questions. I can be reached by email at Kathy@TeamRukat.com or by phone at 843-267-2710. Start searching for your next dream home by visiting the search section of my website. Happy house hunting!!
