The Buying Process

Decide Your “Why”

We will talk more about the process later in this blog post, but I would like to touch on your “Why” when it comes to buying.

When I jump on consultation calls with my clients or when I’m meeting them in person, most of them are nervous about making the jump from renting to buying. My biggest advice is to sit down with yourself or your partner, and ask yourself, “Why do I want to buy a home?”. Are you looking for stability, a backyard, sick of hearing neighbors through shared walls, or are you wanting this home to start your investing journey? Knowing your why will definitely set you up for success and will help steer you in the right direction when deciding which home makes the most sense for your situation.

Find a Lender and Realtor

Now back to the home-buying process! The first steps are finding a lender and a realtor. (I will also make a blog post on what to look for in a realtor and lender and what they do.) Your lender will basically look at your income vs debt ratio and give you a ballpark number they think you can afford. (Will also touch on loans such as VA, FHA, conventional, etc.)

Search and Offer

With this ballpark number, you and your realtor can start looking for homes! Once you decide on a home that makes the most sense, you will discuss with your realtor about what price would be a good offer. Your realtor will send over a purchase and sales agreement. In this agreement, you will have your purchase price, contingencies (conditions that must be met before the sale is finalized such as repairs), closing date, etc.

Home Inspection

Next is the home inspection! The home inspector will inspect the major components of a home such as the roof, attic, heating/cooling, etc. He or she will write a report and give suggestions on what needs to be fixed.

Mortgage Approval

Mortgage approval can be a long process! Proving tax returns, pay stubs, job offer letters, etc. It can definitely be tiring. The banks will also do a home appraisal to make sure that the value of the house is more than what you are financing. (Wll also make a blog post touching on this).

Side Note: Pre-approvals are an estimate not a promise. Pre-approval is a conditional commitment from a lender after they’ve reviewed your tax returns, pay stubs, etc.

Closing Process

Once the mortgage is approved, you will begin the closing process. You will receive a document from your realtor called a HUD. It is a document that lists all charges and credits to the buyer and to the seller. On closing day, you will meet at the Title company with your down payment and will sign a stack of papers for about an hour then the home is yours! (We will go into much more detail about down payment, PMI, etc. in a later blog post.) 

Questions? Contact me!

Please let me know if you have any questions at all! The home buying process can take unexpected twists and turns, but as long as you are working with professionals who have your best interest in mind and are keeping you informed every step of the way, you will be prepared!