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Especially if you’ve never gone through it before, the process behind buying a home can seem long and complicated. In light of that I’ve decided to break it down, step-by-step. Below are the seven essential steps to buying a house. Read them over so that you know what to expect from start to finish.
Connect with a qualified real estate agent
As a buyer – especially if you’re a first-timer – finding a good real estate agent is paramount. He or she will not only connect you with the tools you need to find available homes for sale in your area, but will also take you on tours of those homes, help you write up any offers you’d like to submit, and act as a facilitator during the course of the entire transaction.
In order to find the right agent, you’ll want to do your research. Ask friends and family for recommendations or read online reviews from past customers. Then, when you’ve found two or three agents that could suit your needs, interview them to see which one is the best fit for you.
Once you decide on the right one, he or she should sit down with you to help you determine your wants and needs for your new home. From there, you should get set up on a search through your local multiple listing service, which will alert you to any available listings that match your criteria.
Get pre-approved for a loan
The next step is getting pre-approved for a loan. These days, a pre-approval is considered standard over a pre-qualification because, here, the lender takes an in-depth look at your fiances before telling you how much you’d be approved to borrow. You’ll be expected to include one of these when when you’re ready to submit an offer, so it’s best to take care of the legwork in advance.
Getting a pre-approval is a matter of providing a lender you trust with some important financial documentation, including your recent W-2’s and tax records, pay stubs, and account statements.
Research your potential housing options
Once you have your real estate agent and pre-approval in place, it’s time to start shopping for a home. Stay on top of your MLS search and be on the lookout for any homes that may pique your interest. Be sure to do your research into each one by looking at the available photos, reading over the included information, and asking your agent to provide you with any relevant paperwork.
Then, once you’ve found a few homes in which you’re interested, it’s time to go on a showing. This is essentially a tour of the home, where you have a chance to see it with your own eyes. If you really like what you see, you may even want to go back and take a second look to get all your questions answered.
Make an offer
When you’ve finally landed on a home that you think could be your own, you’re ready to submit an offer. To do this, you’ll sit down with your agent and he or she will help you draw up the paperwork, which will outline everything that needs to happen in order for you to buy the home.
Most people are aware that their offer will include their proposed sale price, but there is so much more to it than that. It will also include information about any inspections you’d like to conduct, as well as any requirements that need to be met such as financial stipulations around your mortgage.
Depending on how the sellers feel about the offer you’ve submitted, they may choose to negotiate with you. In that case, you’ll either go back-and-forth until you can land on a set of terms that is acceptable to both parties or you’ll have to move on to another home.
Conduct your inspections
After the offer has been agreed upon and signed off on by everyone involved, the next step is for you to schedule your inspections. Generally, people know to do a property inspection, which looks at the home’s overall condition and systems. However, you can also elect to have someone inspect for signs of specific problems such as structural damage or the presence of wood-destroying insects.
Once the inspections have been completed, you’ll receive a written report from each inspector. You’ll be given a certain number of days to read over the reports and to make a written request for repairs that you’d like the seller to complete or any credits you’d like to receive in exchange for doing the work on your own.
From there, you’ll enter another round of negotiations. You and the seller will have to reach an agreement on how to handle the proposed repairs or you’ll be given the option to walk away and find another property.
Stay on top of any other contingencies
Once you’re through the inspections hurdle, the biggest thing is just staying on top of deadlines to ensure that any problems get taken care of right away. If you’re getting a mortgage, you may have to submit additional paperwork to your lender and the property will likely have to go through a satisfactory appraisal.
While your real estate agent will be there to help guide you through any issues that may crop up, make sure you’re staying present as well. Listen to any instructions that have been given to you by your team of industry professionals and be sure to respond in a timely manner.
Go to closing
Shortly before closing, you’ll go on a final walk-through to view the property one more time. You’ll want to ensure that any agreed-upon repairs have been made and that all of the home’s systems are in working order.
Then, it’s finally time to sit down at the closing table. This is simply a matter of doing the final paperwork to ensure that the money changes hands correctly and that the title to the property gets transferred into your name.
After everyone has signed on the dotted line, you’ll be handed the keys and will have officially become a homeowner.