Navigating the Home Buying Process

Spring is right around the corner and this is the time that many people begin to think about purchasing a home. In our region, spring and summer are the most common times to buy or sell a home. I have put together a list of tasks, roughly in order, that you will need to complete in order to move into the home of your dreams.

Home Buying Process

1. Obtain pre approval letter. Contact a lender you know personally or start with your bank or credit union. I am happy to provide references of lenders that are reputable and have expertise that meets your needs.

2. Consider your budget. Just because you are approved for a certain amount, you may not want to spend that much each month. Consider other items you want to spend money on or save for. Vacations, college expenses, entertainment, and charitable giving are not items that a lender accounts for when giving you a maximum pre approval amount.

3. Hire a Realtor. This involves signing an Exclusive Buyers Agency Agreement. This agreement outlines all of the things a buyer will do for you and most importantly, outlines the fiduciary duty that the Realtor has to you, their client. Utilize their knowledge of the area and let them help you navigate the buying process.

4. Make a list of priorities. What must you have in a home? These are non-negotiable items. What is important to you? These items are really high on the list and items you may or may not be able to live without. What would you like to have? These items might be a stretch in your price range. If you can get them, it’s a bonus. If you don’t, well…it’s not a deal breaker.

5. Begin your search online. Online services such as Realtor.com, Zillow and many others are great resources as you are starting out. Even better is to ask your Realtor to send listings to you that meet your criteria. The information will be more current and will contain more details.

6. Look at some homes. As you tour homes in various parts of town and in different levels of your price range, you will begin to see a pattern of why some homes are worth more than others.

7. Make an offer. Once you find that perfect home, you are ready to make an offer. Consult with your Realtor about the comparable sales (comps) in the neighborhood. If your home is somewhat different than those in the neighborhood, go outside the neighborhood for sales comps. Ideally, you should have seen enough homes that you know what the market is like for the area you are searching. Your Realtor can guide this process, but remember this is YOUR offer. Your offer can include asking for items from the seller including closing cost assistance or home warranty premiums. Keep in mind that the seller is interested mostly in the bottom line, not how it is distributed. Your offer must include some sort of consideration for the offer. Generally, that is in the form of an earnest money check to a title company or brokerage. It will also include the date you want to close and take possession and of course, the sales price.

8. Negotiate the offer. Negotiations can range anywhere from a few minutes to several days. It really depends on the personalities of the Buyer and Seller. Realtors work to minimize emotional responses during this very stressful time and are required to take all offers and counter offers to their representing party.
9. Sign the accepted offer and all accompanying documents. These documents vary from transaction to transaction. Your earnest money check will be deposited at this time.

10. Perform inspections. Your contract will define how much time you have to hire professional inspectors to examine the property. Your lender will likely require a termite inspection. You may also inspect for mold, radon, lead based paint or really anything else you can think of and want to pay for.

11. Complete Resolution of Unacceptable Conditions. This document lets the seller know if there are defects in the property that you find unacceptable. It is used to ask them to correct those items. The seller may choose to correct all, some or none of the items the buyer asks for. This can be a time of renegotiation between buyer and seller. If negotiations break down at this point and either the buyer or seller backs out of the contract, the earnest money will be refunded.

12. Schedule movers and call utility companies. Utilities should transfer on the date of possession.

13. Do a final walk through. You will want to walk through the home one last time before closing. The purpose of this walk through is to determine that the home is in the condition you expect (same as when you saw it, loved it and offered to buy it) and that the repairs or corrections that were agreed to on the Resolution of Unacceptable Conditions have been completed.

      Finally, you are ready for to close! Go to the title company with a cashier's check for the required amount and sign a bunch of papers. In most cases, you will receive possession of you home when all of your loan funds are available to be distributed.

There are a lot of steps. I would be happy to help you navigate them and would be greatful for any buyers you send to me to help. You can reach me at www.cindycurdrealestate.com or 816-665-8281 or cindycurd@realtyexecutives.com