The Homebuying process broken down into 9 easy steps:
1. Get Pre-Approved
- Meet with a loan officer; by sharing income and other financial information, you will know the price range of a mortgage for which you are qualified
- Get Pre-qualified
- Obtain a pre-approval letter
- Obtain a “Truth in Lending” letter explaining the costs of borrowing money
- Learn about the many loans available to buyers in today’s market
- Learn about closing costs
2. Have a meeting with your Realtor to go over the buying process
- A face to face meeting
- Convey to your Realtor what you are looking for in a home
- Make sure you understand what costs you need to buy a home
- Answer any questions
- Set up an appointment for viewing homes
3. Begin viewing homes with your REALTOR
- When possible, all decision-makers should view the homes
- Always be candid with your REALTOR — it will help them understand your particular needs and desires and enable them to select homes you’ll want to see
4. Prepare the offer
- Your REALTOR will provide you with a comparative market analysis on the property of your choice in order to assist you in making an informed decision
- Your REALTOR will go through the contract with you and complete your offer
- Negotiations will proceed until both buyer and seller agree on all terms and sign
- All documents will be sent to the title company where a file will be opened, and title commitment and property tax information ordered
5. Make your loan application
- Give your loan officer a copy of the contract and apply for the loan
6. Inspect the property
- Select an inspector and arrange for both a general inspection and wood-destroying insect inspection
- Your REALTOR also can provide information about other environmental assessments
7. Appraisal and survey of property
- The lender and title company will make arrangements for the property appraisal and survey
- Buyer will be provided a copy of the Title Commitment Letter
- Buyer will make arrangements for homeowner’s (hazard) insurance, and arrange for the insurance agent to talk with the closing officer at the title company
8. Seller’s closing is also arranged
- Buyer receives a copy of the closing statement for review prior to closing
- Buyer does a final walk-through inspection of the property
- The REALTOR arranges a closing date and time with the buyer and Title Company. Seller’s closing is also arranged
- Buyer brings a cashier’s check or wires funds for all closing costs and the balance of the down payment for closing days
9. After the closing
- Documents are sent to the buyer’s loan company for approval and funds are disbursed
- The title company receives and funds all money from the loan company. Payment of any accrued expenses in connection with the closing are due including taxes, attorney’s fees, professional real estate fees and title company fees
- Legal documents will be recorded in the office of the county clerk and mailed to the buyer
- Title company prepares and issues the title policy, and sends it to the loan company and new home owner