Buyers

The Home Buying Process – The Buyer’s Side

In the process of buying and selling homes, many home buyers and owners wonder what to expect. If you are a buyer, here is what you will likely experience:

Step 1: Loan Pre-Approval

The first step in buying a home is figuring out how much you can afford and then getting pre-approved for a loan. Be sure to figure into your budget the cost for taxes and insurance on the home as well as the cost of the mortgage itself.

Step 2: Finding a Home

Next it is time to start shopping for your home. This is where you will rely heavily on your realtor. Be sure to consider things like the location, size, and amenities as you shop.

Step 3: Make an Offer

Once you find a home, you will need to make an offer. Most buyers choose to offer slightly less than the seller is asking. Often, the seller will counter with a slightly higher number. This negotiation process can be rigorous, so you need to know how much you are willing to pay for the home before you make your first offer. At some point, you and the seller will likely agree on the terms of sale for the home.

Consider making your offer contingent on a home inspection. Having the home inspected can save you from buying a home with a serious and expensive problem. If the home passes inspection and the price is fair to both parties, you will schedule a closing.

Step 4: Find Homeowner’s Insurance

Before your closing, you will need to find homeowner’s insurance. Shop around to get the best price and coverage options, but have this in place before you go to your closing, as your lender will require it.

Step 5: Close on Your New Home

At the closing (which is sometimes called the settlement) you will meet with the seller, a representative from your lender, and possibly an attorney to sign the papers that will finalize your mortgage and turn ownership of the home over to you. After the closing, you will walk away with the keys to your new home!

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