Home Buying Process
Buying your first home can seem overwhelming and impossible. First time home buyers wonder if they can afford it, how much money they need to have, and where to start. Here are some basic steps to buying your first Logan Home.
1. Figure out what you want, at a price you can afford.
Surprisingly, what you want and what you can afford are usually different. Search homes online and get an idea of how much it costs for so much home. Then, talk to a lender to get an approximate of what you can afford.
2. Get pre-approved for a loan.
To get pre-approved you need to meet with a mortgage lender. They examine credit, employment, debt, and income to determine what they can loan you, and at what rate. They will recommend loan products that best fit your needs.
There are many programs that require no money down, but your monthly payment will be lower if you can save something. Especially with increasing underwriting standards.
3. Tour Homes and find the home that is a winner.
Find homes online in your price range that look interesting, and then call, or e-mail me with the MLS#'s of those homes you'd actually like to see. If the present owner of the home still lives there, we should give them 24 hour notice before showing it. If it's vacant, we can usually see it whenever. We will look at as many houses as it takes until we find one that you want.
4. Make a written offer
Once a house is found that you want to make your home, we make a written offer. In the offer, we negotiate not only price, but also possible concessions, possession date, and contingencies that must be met to make it a binding deal.
When we make the offer, you also make an earnest money deposit. The earnest money shows the seller you are serious about your offer. The more you put down, the more serious your offer looks. $500 - $1,000 is a typical earnest money deposit.
Your offer is then submitted to the seller’s agent, and they present it to the home seller. A little tip... when you find a house you like don't wait. If you like it, there is a good chance somebody else will as well.
5. Wait for Offer to be accepted or countered
The offeree is usually given atleast 24 hours to respond to the offer. Unless your offer is near full price, it will likely be counter-offered. Then you get to decide if you want to accept their counter-offer. When both parties agree, we work to meet all contingencies.
6. Complete Necessary Inspections
Unless you are paying Cash, you will need an appraisal. Usually your lender will arrange the appraisal. The purpose of the appraisal is to verify that your home is really worth what you are buying it for.
You may also also want a home inspection. It is important that we complete the inspection by the contracted deadline in case the inspector finds red flags.
7. Finalize The Loan
Getting your loan to go through is sometimes the most painful part of the real estate purchase process. Even when you are pre-approved, underwriters often throw you through loops and require you provide all kinds of ridiculous information at the last moment.
8. Settlement
Settlement is where you actually sign all the paperwork. You, me, your lender, and a title officer meet at a Title Company. The title officer goes over all the paperwork, ensures that the dollar figures, pro rations, and arrangements are as agreed.
9. Recording
If you signed everything correctly, the title company disperses the funds, and records you as the new owner of the property on the county records. After this takes place, you usually have permission to move into your new property.
