Purchasing a home is a major milestone in everyone’s life. Having finished the planning process and found a home that you love. It is time for the finishing steps. We will be talking about the required procedures for purchasing a home.
Step 1: Make an Offer
The Real Estate Agent will negotiate a fair offer based on the value of comparable homes in the same neighborhood, and how long those houses have been on the market for. Once you and the seller have reached a price agreement, the house will go into escrow, which is the period of time it takes to complete all of the remaining steps for purchasing a home.
Step 2 - Part A: Get a Home Inspection
A home inspection is a limited, non-invasive examination of the condition of a home, to check for signs of structural damage or things that may need fixing. Your Agent will help you arrange to have an inspection conducted within a few days of your offer. This protects you by giving you a chance to renegotiate your offer or withdraw it without penalty if the inspection reveals significant damage.
Step 2 – Part B: Receiving the Report
Both you and the seller will receive a report on the home inspector’s findings. Depending on how major the repairs are, your Real Estate Agent will renegotiate the offer, or you can ask the seller to fix any damages on the property before closing the sale. It is preferable to get a credit on the repairs – in case the damages are not fixed to your satisfaction. You will have another walk-through of the house, which gives you the chance to confirm that, any agreed-upon repairs have been completed.
Step 3: Select Your Loan
Every Homebuyer has their own priorities when choosing a mortgage. Some are interested in keeping their monthly payments as low as possible. While others are interested in making sure that their monthly, payments never increase. You will have many questions when you are purchasing a home, and having an experienced Mortgage Broker to assist you can make the process much easier. Usually, Real Estate Agents will have a partnering Mortgage Broker on their team.
Step 4: Get the Home Appraised
An appraisal is the estimation of a home's market value, based on recent comparable sales of homes in the neighborhood. The appraisal will let all the parties involved know that you are paying a fair price for the home.
Step 5 – Part A: Getting a Lawyer
Getting a lawyer to review the paperwork ahead of time can make a huge difference.
A Real Estate Lawyer can help protect your interests when it comes to financing and outlines each person’s rights, discussing what must happen before final closing. This will help prevent you from agreeing to something that is not in your interest.
Step 5 – Part B: Closing the Deal
There is a lot of paperwork involved in purchasing a home. Your Real Estate Agent and Lawyer will organize all of the paperwork and make sure that the seller is the rightful owner of the house you are buying. After, you sign all the paperwork required to complete the purchase, including your loan documents. It will take a couple of days for your loan to be funded. Once the check is delivered to the seller, you are ready to move into your new home!
We are confident that these steps will be very useful in purchasing your future home! If you have any further questions please, contact us.