Home Buying Process

 If you haven't bought a house before, it can seem scary. Especially if you don't have the right people or information.

It's important to remember that every transaction is different. Just because something happened to so and so doesn't mean it will happen to you. Let me break down the typical steps when purchasing a house: 

1. Getting Pre-Approved

Getting pre-approved is the first step when purchasing a house because without a pre-approval you don't logically know how much you can afford. Getting pre-approved allows you and your realtor to be prepared when house hunting, and then writing an offer. Having your pre-approval letter ready benefits you also when the right house pops up on the market and you want to write an offer. If the house is popular and gains a lot of interest, the last thing you want to do is submit an offer without a pre-approval letter.  

2. House Hunting

Once you are pre-approved, then the fun begins! When searching for a house, it has its ups and downs. There's the possibility of a bid war and the chance of not getting your dream home. There's the possibility that the home inspection can bring up a major issue which may cause you to walk away. I don't want to scare you away from buying a house but I want to be transparent that house hunting can be a little bit of letdown at times. That's why I, along with other realtor are standing beside you to remind you that the right house it out there. Realtors are there to guide you through the good and the bad. When house hunting, your realtor will send you possible houses that match your criteria. If any of those houses stand out, then your realtor will set up a showing. Looking through houses can be a lot of fun and overwhelming at times. It's important to take your time and don't be shameful if you have to take a second look before writing an offer. Once you find "The One" you then discuss writing an offer with your realtor. 

3.  Writing An Offer

Once you find your dream house then your realtor will begin to draft up your offer. In the offer you will decided if you want any contingencies, such as a home inspection or a survey that you wish to have included along with other terms. Once the realtor completes drafting your offer, the buyers will then sign it and the offer will be sent to the listing agent to present the offer to their seller. There are a few directions it can go from here. The sellers could either accept your offer and have a binding contract, they could counter your offer, or they could reject your offer. If they counter the offer you as the buyer can accept their counter or counter them back. If they accept your offer, you then are under contract! Whoo! What's Next? 

4. Under Contract 

Once you get your offer accepted and you are officially under contract this is what happens next. First you will send out your earnest money deposit (EMD). This can be mailed or wired and will be held in escrow until closing. Your EMD will be put toward your closing costs/ downpayment at closing. It mainly shows that you are a serious buyer. You are able to get you EMD back if your sale falls through due to one of the  contingencies that was stated in the purchase agreement. Next, depending if you chose to get one, a home inspection would take place. A home inspection is at the buyers cost and can bring up any red flags or precautions with the house. If the inspection goes well and/ or if the buyer(s) and seller(s) came to an agreement, you then move onto the appraisal. The appraisal is ordered from the bank/ lender to ensure the value is efficient. If the appraisal comes in okay, you're good to move forward. If it doesn't there are a few options. 1. Due to the loan contingency, the buyer can terminate the contract and walk away with their EMD.  2. Seller can negotiate the sale price with buyer. 3. Buyer can pay the difference. After the appraisal is. concluded, underwriting takes place. The mortgage company/ bank is making sure everything is looking good. Once underwriting is complete you will the receive those magical words, "Clear to Close"! 

4. Clear To Close 

Once you receive the clear to close you are so close to becoming homeowners! It's usually about 3 days after the clear to close when you have your official closing. Once you complete closing, depending if you get immediate occupancy, you are handed the keys and start your journey in your new house! 

I would love to help you find your dream house and get you moved in! If you have any questions - don't hesitate to reach out! Happy Hunting! :)