August 7th, 2012
If you’re a first-time homebuyer, you’re probably skeptical of the real estate process. You may not know what standard procedure is, and you certainly don’t want to be taken advantage of with one of the biggest transactions you’ll ever make.
In his Zillow blog post, “The Anatomy of a Real Estate Purchase,” Brendon Desimone breaks down the 7 primary steps of buying a home.
For the most part, we agree with Desimone, except there is one way to make buying a home MUCH easier.
First and foremost, sit down with a mortgage lender. Getting pre-approved will allow you to search for homes you know you can afford (there’s nothing worse than finding a home you love and then finding out you aren’t able to borrow that much money).
It will also give you a competitive edge. A seller is looking to sell as quickly as possible. The last thing he or she wants to do is wait a month only to find out you weren’t approved for a mortgage. If the seller knows you’re serious about buying and able to get the funding, you will be much more likely to land your dream home.
Make the offer and sign the contract. When you find the home you know you want to purchase, it’s time to make the offer. Your real estate agent will help you determine a fair offer, and write it up.
You will then sign the contract, which seems awfully early and scary to some people. There are terms of the contract, though, meaning as long as everything checks out OK, you’ll buy the home. If the inspection ends up showing that the home needs a new roof, for example, you aren’t obligated to keep the contract.
Disclosure review. This is when all the nitty-gitty things about the home come out, such as flaws or violations of the home. If you aren’t happy with what you hear, this is your way out of the contract.
Appraisal. The bank wants to make sure they aren’t funding a home that isn’t worth what you’re paying for it, so it will conduct it’s own appraisal before approving the loan.
Inspections. The ball is in your court during the inspections, as you hire your own home inspector to diligently go through the home to ensure everything is as it should be. If there are any issues, you can renegotiate your contract, or even exit it.
Final walk-through. Here’s your final chance to make sure the home is exactly as you expect it to be, and any repairs or changes have been handled before the home is officially yours.
The closing. This is it. You will sign dozens of documents, which you should take the time to fully read, regardless of how long they are.
As you can see, the process of buying a home is very detailed, and it helps having a professional on your side. At Acadia Lending Group, we’re dedicated to walking you through each step from start to finish. Call us today!