Have you decided to buy a home but are wondering what to do next? If you’re like 99.9% of people, you’re probably a little nervous and confused. In this video, I’m going to summarize the 9 basic steps of the home buying process from start to finish so you know exactly what to expect. As a home buyer, you want to arm yourself with as much information as possible so that, when a good deal comes up, you can jump right on it. Good deals go by fast and you won’t have time to do research later, so it’s important to understand the process.
#1: Pick A Real Estate Professional
The first part of the process is to pick a real estate professional. Remember, this is someone you’re going to trust with millions of dollars. You want to make sure you feel comfortable with them, as they’ll be representing you the way you want to be represented. This person needs to be knowledgeable and understanding of not only your needs but the market. They should have the ability to quickly adjust to what you’re looking for. Whether you use me or someone else out there, you want to make sure that this person is on your side and looking out for your best interest.
#2: Pick A Lender
The second thing you want to do is pick a lender. A good lender is going to map out the numbers so you can search for a home that best fits your budget.
#3: Get Approved
This step includes working with your lender and your financials to determine your ability to afford the home you choose. Your lender is going to help you create a budget, so you know if can afford to buy this new home. Once you’re pre-approved, you will have a number that you’re qualified for that will allow you to move on to step number four.
#4: Determine Your Wants And Needs
Next, you and I will sit down and go over your wants and needs. What are your likes and dislikes? By doing this step, we can narrow down what type of home you’re looking for, where this home is located, and what best suits your needs. In this way, we’re not wasting your time viewing homes that you don’t qualify for outside your area. Because homes can sell fast, knowing what you want to live in and where you want to live will enable us to act quickly.
#5: Shop For A Home
Once we’ve listed out all your needs and wants, it’s time to shop for a home. This is where we go out and start looking at homes that fit your needs. Once this process starts, we never know how long it will take. It’s important to take our time to choose the right home; this process can last from 1-3 weeks or 3-5 years. It all depends on what you’re looking for.
#6: Submit An Offer
Once we find the right home for you, our next step is to is submit an offer. We’ll take everything we’ve done so far, work with the lender, and put together an offer to present to the seller. Once we’ve submitted an offer, there might be some time where we’re negotiating terms, pricing, or other factors that we didn’t realize. Once the offer’s accepted, we move on to step number seven.
#7: Due Diligence
Once our offer is accepted, it’s time for us to go through the home and do our due diligence, ensuring it’s safe and ready for you to move in.
#8: The Appraisal
Step 8 coincides with step 7; the lender will order an appraisal on the home to verify its value. Once this appraisal is ordered, your lender will be doing all kinds of things behind the scenes that you probably will not see. They’ll gather all the documentation needed to be able to close and fund this loan for you, which moves us on to step number nine.
#9: Close of Escrow
Step number nine is usually the fun part, what we call close of escrow. This is where the home becomes yours and you get ready to move in. At closing, we sign our final documentation and go all of our agreements. Once you notarize the documents, you become a homeowner. Congratulations!
While this list may not seem too complicated, there’s a tremendous amount of work to do during each step. When we meet, I’ll break them down one by one, map everything out, and create a timeline you’re comfortable with.
I hope this helped you understand the process and gave you an idea of our homebuying roadmap. If you have any questions or would like more information, please don’t hesitate to reach out to me and I’ll be happy to help!