Buying a home in 5 steps
The homebuying process is fairly simple, but there are a few things you need to know. Here’s how to buy a home in five easy steps.
» Step 1: Prequalify for a home loan.
It really doesn’t matter what real-estate market conditions exist when you begin the process. Unless you are paying cash, sellers will require that you have at least had preliminary conversations with a mortgage lender. If the market’s hot, you’ll have competition, and a seller will automatically eliminate those unprepared. In a buyer’s market, a seller is unlikely to accept an offer unless he or she knows you can complete the sale, for fear of missing out on a truly qualified buyer. Plus, it can be very frustrating finding the home of your dreams only to find out you can’t afford or qualify for it. A knowledgable lender will know after only a few minutes whether you can qualify and for how much. Be sure to provide the lender with all requested documentation promptly. You don’t want to be the reason for costly delays at the end. » Step 2: Find a home. Today, 98 percent of people start their search on the Internet. While the Internet is a great tool to look for a house, it’s not necessarily the best way. The best deals and Walters Realty Group
the cream-puff properties always sell fast. Realtors generally get the information on newly listed homes at least several hours and sometimes several days before the information is available to the public online. You need an agent to unlock the doors to show you homes for sale and prepare your offer anyway, so you may as well find one before you set out. You’ll be less likely to miss out on the perfect house if you pick your agent in advance. Did you know that with rare exceptions, the seller will pay your agent for you? It’s true. You are very unlikely to pay any money to a Realtor when you buy. Be smart and take advantage of the resources you have available to you. » Step 3: Make an offer. Once you locate a home you want to buy, your agent will prepare an offer to present to the seller. Your agent will know what information is required to prepare your offer. You decide how much you are willing to pay. An experienced agent can counsel with you on strategy to get the best deal. Be prepared to provide a check for a deposit known as earnest money. Your deposit will usually be refundable if the home doesn’t appraise at the offer price or if you fail to qualify.
» Step 4: Get the home inspected.
You will normally have 10 days to perform any inspections you choose. It is a good idea to hire a professional home-inspector to reveal any defects or problems that exist. You also will want to get a termite inspection. There are other types of inspections you may perform, such as a leadpaint or mold inspection, but those are most commonly only done when a problem is brought to light by the home inspector or there is reason to believe a problem exists. But you are entitled to perform any inspection you wish.
Once the inspections are complete, you will have three options: accept the property as-is, request the seller correct any items you disapprove, and cancel the sale and get your deposit refunded. If you request items be corrected, there are deadlines for the seller to respond to your request. If you are unable to agree with the seller on repairs, you can cancel and get a refund of your deposit. » Step 5: Close escrow. When your loan is complete, the lender will send documents to the closing agent for signa- tures. In Arizona, we use title companies as closing agents. The title company also will prepare title-transfer documents for you and the seller to sign. You will typically sign documents a day or two before the closing date, known as close of escrow. You will usually take a cashier’s check or arrange a wire transfer for the balance of your required closing funds to the title company.
They will collect all monies, including the loan proceeds, and disperse as needed to the parties at close of escrow. They’ll disperse money to your insurance company, appraiser, termite inspector and seller for any proceeds they have coming. They will also record all necessary documents with the county. Once the deed is recorded, the deal is closed, and you will be the proud owner of your new home.