the buying process

Looking to buy a home? Or are you simply curious on what that might look like? Here’s what to generally expect from the home buying process.

 

  • (1) Connect with a Realtor (Me!) to discuss your home goals.

    (2) Connect with a Mortgage Lender and get pre-approved for a loan. This process will help you understand how much you qualify for and what your loan options are.

  • To begin, I’ll get you set up on a custom home search so that you are always in the loop and are notified when new properties that match your criteria hit the market.

    From there, we’ll attend showings and open houses together to help find the perfect match.

  • You found a house that you love, now what? We write up an offer! I will help you prepare a competitive offer based on the price + terms that you choose.

    Once your offer is submitted, it’s normal for some back and forth to occur, but I’ll be by your side to advocate and negotiate for you.

  • Congratulations! Your offer was accepted and you are officially under contract, but you’re not done yet. After you go under contract, there is a period of time for you to vet the home. Here is a breakdown of what to generally expect during this period:

    • Deliver Earnest Money (roughly 1% of the purchase price)

    • The title company begins working on the title search.

    • You’ll complete your loan application and review your loan terms.

    • A home inspection will be completed by a licensed home inspector & I’ll help negotiate needed repairs with the seller.

    • Appraisal (ordered by the lender) is performed.

    • You’ll get quotes for home owner’s insurance.

    • Underwriting will take place (completed by the lender)

    • The final loan commitment will be issued.

    • You’ll change all utilities to your name and schedule service to start on the day of possession.

    • We’ll perform a final walk-through of the property prior to closing.

    Once all of those items are completed, you are ready to close on your new home!

  • This is the day you’ve been waiting for. Together we will attend closing at the title company where you will sign all of the necessary documents to officially transfer the property over to you. On this day you will be expected to bring your down payment and all of your closing costs with you to the closing table.

    Once everything has been signed, by both parties, the keys are officially yours.

    Before you move in, don’t forget to schedule the following:

    • Utilities

    • Movers (optional)

    • Mail Forwarding

    • Cleaning (optional)

    • Locksmith to Rekey (optional but recommended)

 

Let’s Find Your Next Home!

OUT-OF-POCKET CostS TO PREPARE FOR.

What are the costs of buying a home? Even if you are getting a loan to help with the purchase, there are still some costs (beyond the down payment) that you’ll want to prepare for. Knowing what to expect will help set you up for success. Below, I’ve broken down some common costs to help give you a rough idea of what to save up for. However, it is important to note that some lenders (and transactions) have different requirements.

 

earnest money.

This amount varies based on the home but generally expect to pay 1-2% of the purchase price. Earnest money acts as a deposit and is used to help show that you are serious about buying a home by putting some money on the line. When you go under contract the first thing you will do is deliver your earnest money. At the end of the transaction, this money will get applied towards your downpayment/closing costs.

downpayment.

This will vary so I recommend reaching out to a mortgage lender to get a better understanding of what to plan for. When thinking about how much to put down, keep in mind that the amount you put down will impact your monthly payments, interest rates, and mortgage insurance. It’s also important to weigh the benefit of having extra cash on hand vs putting it into your home. These are conversations you will want to have with your lender. Everyone’s situation is different and your lender should help walk you through your different loan/payment options so that you can decide what the best fit is for your specific situation.

inspection.

The inspection is a part of your due diligence period. This is a cost that you will be expected to pay prior to closing day. Depending on the property, a general inspection can range from $400-$740. Some other items that buyers commonly choose to have inspected are the sewer line which can cost roughly $120-$200 and radon testing which can cost roughly $100 - $150.

closing costs.

Plan for roughly 1-2% of the purchase price but your lender will be able to give you a close estimate of what to expect. These costs include a handful of fees like underwriting fees, loan origination fees, title fees, appraisal fees, transfer fees, closing fees, etc. Additionally, a bulk of this money will go towards an escrow account that is set up to pay for your annual taxes and homeowners insurance.