Ducks in a Row: Things a home buyer should know

Many people want to know how the process works when purchasing a home.  Below I will outline the basic steps in the home buying process.

1.  Find a Realtor you trust:  It is important to find an agent that you like and feel comfortable with.  You need to have confidence that they will represent your needs and values and work hard for you.  Sit down with your realtor and set a price you can afford, talk about what location, features, priorities and style of home would fit you best.  

2.  Prequalify:  Meet with a lender and get yourself prequalified.  It is important to know exactly how much of a house you can afford, and it will help you in the negotiating process if you are already pre-approved with a lender. 

3. Drive Around Neighborhoods:  Drive around the community you are most interested in.  Look for parks, schools, shopping, restaurants, trails or whatever is most important to you.  Once you fall in love with a certain area, the house will be easier to find.

4.  Start looking in homes:  Set up showings with your realtor and begin narrowing down your choices by looking at the external and internal features of specific homes.  It is during this process where you may choose a home outside your favorite location, or visa versa depending on what the most important factors are for you.  For some location is most important, for others the house is most important. 

5.  Making an Offer:  Remember an offer must be in writing, and you must be willing to pay earnest money up front to show good faith that you are serious about the home.  You will then need to decide on a price you are willing to pay, closing and occupancy dates, contingencies including qualifying with a lender, inspections, appraisals etc.  It is important to decide on what possession date all the parties feel comfortable with as well.  Usually this happens on the day of closing.  Lastly you will need to discuss what personal property you want included or excluded from the offer.

6.  Lending Process:  Once the offer is accepted, you can then continue to work on gettting your loan.  If your mortgage company is not sure they can make the deal work, feel free to try another lender while under contract.  If you want the house, it is important to work as hard as you can to get the right loan for you. 

7.  Closing:  As closing, the buyer and seller will meet with the lender, the realtors, and the closer to complete the transaction, sign paperwork, and exchange keys.  Once this is complete, the documents will be filed with the courthouse, and the house will officially be put in your name.  Congrats.

-Jeff