JOURNEY TO BUYING A HOME – An Introduction of the Home Buying Process

  1.  Full Approval With a Creditor
    1. Find a creditor and get loan approval (tax returns, W-2’s, etc. as soon as possible).  The result will let you know exactly what your price range is for your home search. This step is most important and will set the road to how smooth your transaction proceeds.
  2. Real Estate Representation
    1. Find a Realtor® you feel comfortable with to represent you in this process; otherwise, the Realtor® will be representing the seller and not you! This also goes for new build homes!!!
    2. This service is free to the Buyer as the Realtor® is paid by the seller!
  3. Property Showings
    1. You and your Realtor® will view favored properties that fit your criteria and taste through scheduled appointments (if necessary)
  4. Contract Offer
    1. Once an offer is submitted with earnest money, negotiations may follow until acceptance by the seller.
    2. Option Time:  the Buyer gives the Seller a fee allowing the Buyer to recant the offer for whatever reason in a stated time frame (5 to 10 days).  It is during this time that the Buyer has inspection(s) performed with report(s).  Afterwards negotiations can take place as a result of the report(s).  It is also during this time if the Buyer changes their mind (buyer’s remorse), they can terminate the offer and the seller keeps the fee, and earnest money is returned to Buyer.  If offer proceeds beyond the Option Time, and goes to a successful close, the option fee and earnest money is credited to Buyer.
  5. Multiple Happenings At This Point
    1. During this time the Title Company and Creditor begin their process of working the transaction.  (See Contract to Closing)
  6. Agreement to Close
    1. Title Commitment Insurance is issued and Creditor Loan is approved by the underwriter (if it has not been approved prior to this point).
  7. Consummation
    1. Buyer and Seller schedule (at different times) to close at the Title Company.
  8. Funding
    1. After all parties sign consummation documents, funding is processed and Buyer owns home!  Keys and any other property information (i.e. garage door opener, appliance manuals, etc.) are given to Buyer.

Of course there are other details that occur during this journey that you, your Realtor®, and your Creditor will discuss.  These are the basic steps to help a Buyer understand the process in becoming a home owner.