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The buying process

 As a new home buyer, you would want to contact a real estate agent in your first step.

Next, you would want to contact a lender where they would pre-qualify you for a mortgage that suits your budget. The lender would then issue you a pre-qualified letter to see how much you are approved for.

Once you get this information, you would work with your real estate agent to find a home within your budget.

When you find a home that suits you, you make an offer and your estate agent writes a purchasing contract. The contract is then presented to the seller.

In this stage, there are negotiations between the seller with their agent and the buyer and their agent.

When the contract is accepted, a few things happen simultaneously.

First, the seller has to provide a private property disclosure which describes any defects or issues that need to be known to the buyer within 5 days of the contract being accepted. Then, property inspections must be facilitated with an inspections and conditions removal addendum to the contract. This then goes into escrow to verify the compliance of all parties to execute the contract.

Simultaneously, there is a property inspection that must take place within 10 days, facilitated by the buyer, with any information being added to the inspection and conditions removal addendum to the contract. Like with the seller, the observations go into escrow to verify the compliance of all parties to execute the contract.

The buyer also must shop for insurance for the home. This protects the property and ensures that the property is insurable. This information goes to escrow to verify if the conditions are met.

In regards to the next steps with the buyer and lender, the buyer goes through the lending process. Here there is an appraisal on the home with an appraisal report which is sent to the lender to provide a Loan Status Update (LSU). Then the lender provides loan conditions removal in the contract, and the final loan approval is made. This is also sent to escrow to verify the compliance.

Once escrow verifies everything, the closing procedures take place. After the documents are all signed, the seller receives their payment. The buyer gets their loan funded, the title to the house is acquired, the home’s utilities are turned on, and they get the keys to the house!

This may seem like a lot of work, but choosing the right real estate agent to work for you with the experience and track record can make these steps easier! Contact us today and we will gladly start your home buying journey!