The Home Buying Process

Click each step below to see details:

Parties involved

Seller’s Agent
Buyer’s Agent
Transaction-Broker
Customer

Step 1: Needs Assessment

• Lifestyle
• Finances & budget
• Desired neighborhoods
• School requirements
• Commute time
• Style of home
• Size requirements, etc.
• Your expectations how long does it take to buy a house

Step 2: Area Tours

Once we have a thorough understanding of your priorities, we get in the car and drive through those areas that most likely suit your needs. The idea is to eliminate those areas that just won’t work while fine tuning and showing you the neighborhoods that fit your requirements.

Step 3: View Homes

Once we have determined your favorite areas we start to view homes in those areas. We generally preview before we take a buyer. The purpose of previewing is to eliminate those homes that have some kind of resale issue or major problem. By previewing we are able to eliminate the number of homes you will have to look at before you actually get in the car.

Step 4: Locate Home

When we find the home you are interested in purchasing, the first thing we need to do is establish the value, in other words, how much is the property really worth? The tool we use to establish value is called a Comparative Market Analysis.

Step 5: Prepare Offer

Once we have established value, we determine how much we would like to offer. This decision is based on a combination of actual market value, your perceived value of the property, property condition as it relates to the amount of inspection items we think we might have to ask for.

Step 6: Contingencies

Once we have the property under contract the due diligence period begins. Our goal during this period is to systematically remove all contingencies. These contingencies are short periods of time to get the financing in order (loan conditions), verify that the property condition is acceptable (inspection objection) and to make sure the title is clear and merchantable (title objection).

Step 7: Loan Processing

Once we have an accepted offer we are officially “Under Contract”, we send a copy of the agreement (contract) to the lender. The lender in turn starts to process the entire loan application. The loan goes into underwriting. Loan Underwriting by definition is “The analysis of risk and the decision whether to make a loan to a potential Homebuyer based on credit, employment, assets, and other factors”.

Step 8: Property Inspection

The inspection is our time in the house with a trained professional, time to discover the true condition of the property you are about to buy. This is why the choice of an Inspector is an important one.

Step 9: Negotiate Inspection Items

This is a process of putting together a list, if the inspection yields any unsatisfactory conditions. We present this list to the Sellers agent who in turn reviews it with the Sellers. They have two choices, to agree to all conditions of our requests or to propose an alternative resolution. If they propose an alternative resolution, the buyer has the opportunity to either accept the resolution or walk away from the deal with earnest money intact.

Step 10: Appraisal

The lender will arrange to have the property appraised. This is an upfront charge that the lender will collect at loan application. A professional, licensed appraiser will research the value of your home.

Step 11: Title Review

The seller must be able to provide, via the Title Company, a clear and merchantable title to the purchaser. The title company includes all parties in their research, so as a result, you will receive extensive paperwork throughout the transaction period. The Title Company provides a current “status” on the title. This is usually where a flag will appear for any potential problems by notifying all parties what liens and/or judgments need to be paid at closing. The Title Company also provides a proposed commitment for your new title policy. This is where your lender will be listed as a lien holder. Title companies must also provide covenants and Home Owners Association documents. We review these documents for any potential problems prior to the title deadlines set forth in the contract.

Step 12: Final Walkthrough

Prior to attending the closing, we walk through the property one more time to make sure any contractual inclusions are still at the property. Additionally, we make sure the property condition is acceptable, prior to the Seller receiving funds.

Step 13: Closing

We review the final figures making sure there are no excessive lender fees or erroneous closing costs. Our goal is to eliminate unpleasant surprises at the closing table.

Step 14: Posession and Post Closing

Possession is typically upon delivery of deed and funding, however with a Post Closing Occupancy Agreement. Seller may retain possession of the Property from date of Closing not to exceed 60 days after Closing.