The Home Buying Process

Once you have completed your online research, you should begin the home buying process by forming trusting relationships with a Realtor® and a mortgage professional. By choosing people that you enjoy working with on a regular basis, your experience will be both pleasant and successful. A commonsense starting point in this relationship building endeavor is to schedule a no cost, no obligation, introductory meeting with each of these professionals. Since this is an informal meeting, you can even schedule it at your favorite coffee shop!

The next step in the home buying process is 'getting pre-approved' for a loan. During this stage, your mortgage professional will determine if and how much you qualify for in terms of financing. After you achieve pre-approval status, you will not only become aware of all aspects of your particular loan, but you will also gain legitimacy as a prospective buyer in the eyes of potential sellers and their Realtors®. Furthermore, gaining this knowledge and negotiating power should only come at a minimal cost; most mortgage professionals will only request that you pay the cost associated with pulling your credit report.

Having received a preliminary loan approval, you will begin working more closely with your Realtor®. As you disclose your wants and needs for your perfect home, your Realtor® will provide you with listings of potential homes. A listing is a home for sale by another Realtor® who represents the owner of the home. Applicable listings will contain pictures and information about prospective homes that satisfy your pre-specified criteria. Some homes will be For-Sale-By-Owner (FSBO, pronounced "fizz-bo"). Click on the following link if you would like to receive an email that discusses why you won't typically save money by purchasing a FSBO. Once you identify several appealing properties, you and your Realtor® will coordinate a time to perform a "walk through" thereby touring the individual properties.

After finding the home which best suits you, your next step will be to make an offer on the property. Your Realtor® will handle all of the paperwork and be able to advise you as needed. Click the following link to receive an email regarding the critical aspects of home buying negotiations. When negotiating on a price, you must be prepared to provide "earnest money" when your offer is accepted. Earnest money is your contribution of something of value thereby validating the formation of a contract. However, your earnest money is at risk because a contract is involved. The professional assistance of a Realtor® is highly recommended.

All inspections and research you would like to complete on the home can be done after the offer is made and accepted. Inspections are crucial in giving you peace of mind about the house you are buying. Most contracts are written to allow plenty of time for professional and personal inspections to take place before full commitment is given. This is an important point because if you choose to do the research and inspections before making an offer another offer might get accepted in the interim.

Now that you have found a home and your offer has been accepted, you will once again meet with your mortgage professional. At this meeting, you and your loan officer will complete the final paper work, finalize the loan details, lock the interest rate, and prepare for "closing." Closing usually occurs about 30 to 45 days from the acceptance of your offer.