Buying a Home

Congratulations! You have made the decision to become a homeowner!

What Now???

1. If you have not already done so, your first step is obtaining approval for a loan- either through a bank, direct lender or mortgage broker. An established Realtor can refer you to competent, qualified loan professionals who will offer you competitive loan programs and close your loan on time. This is the single most important factor in buying a home.
2. Find a home you like and submit an offer with the goal of negotiating for a contract. A qualified, experienced Realtor can help you with this task. Remember, a Realtor has access to all listed properties so please make the commitment to work exclusively with one Realtor – you can be assured we will work exclusively for you! No need to drive around and call on signs, your Realtor will have the most up to date information available.
3. Once your contract is accepted, you will be required to place an escrow deposit or earnest money deposit to secure the home until closing. This is usually the amount of 1% of the sales price of the home. This deposit is generally held with the sellers title company until your closing day. Should your loan fall through due to uncontrolled circumstances, i.e., you lose your job involuntarily or the house does not pass the home inspection per the sales contract, this deposit can be returned to you. If you simply change your mind about the house, you may lose your escrow deposit by not proceeding with the sale.
4. Locate a qualified home inspector and schedule your home inspection. This cost is based on the size of your home, though the average inspection cost is $300.00 - $400.00 for home and termite inspections. This cost is paid to your inspection company upon inspection.
5. Your Realtor can assist in coordinating any repairs necessary between the seller and seller's agent and renegotiate if necessary should repairs exceed amounts stated in the sales contract.
6. Other costs to you, as the buyer are the property appraisal and the survey. These cost an average of $300.00 - $350.00 each. Should the home not appraise for the sales price, the buyer and seller can renegotiate or cancel the contract. Surveys produce a written outline of your property to ensure no boundary disputes or encroachments, define existing easements, etc. The title company that will do your closing orders this. These costs are generally included in your closing costs and not paid upfront.
7. Final walk-through of your property before closing, this occurs usually one day before you close on your new home.
8. CLOSING DAY! CONGRATULATIONS! Today is the day you will sign all necessary papers to take possession of your home. You will need to bring certified funds and a photo ID your Realtor will attend your closing with you. To see a sample timeline of these steps, please click here to view 30 days to owning your home.
9. File for your Homestead Exemption. Your Realtor can provide you with the necessary forms and information to save you additional money on your property taxes, which saves you money on your monthly payment!

REMEMBER VERY IMPORTANT!!!!

Do not open any additional credit cards or credit accounts between the time you are approved for a loan and the time you close on your home. This may and usually will affect your ability to close on the home and you may lose the house and your escrow deposit for damaging your credit. If you lose your job or change jobs to a different line of work or one that pays less money, this may also affect your loan. Buying a home is a serious commitment; wait until after closing to make any changes or additions to your credit report!