Buying a home may be the biggest financial decision of your life. Make sure you're informed.
The home buying process is unlike any other purchases you've made in your life. It is important to understand the complexity of such a large transaction so that you know all of the costs, benefits, and risks associated with owning real estate.
Home Buying Steps
The first step to the home search process is to be pre-approved by a mortgage lender. The pre-approval will help you determine your financial situation. There are different types of mortgage loans. Learn why it is the first step: Pre-Approval
The 2nd step in the home search process is to work with a Realtor to talk about your wish list and your financial situation. In this conversation with your Realtor, you will work together to determine what are realistic goals when looking for your next home. You may also enter into a Buyer's Agreement with your Realtor.
The 3rd step involves you and your Realtor searching for available properties and scheduling showings to view properties. You might also be attending Open Houses during the home search process.
The 4th Step is when you've found the property you wish to purchase and you work with your Realtor to send an offer to the Seller for the price you'd like to purchase it for. An offer is a legal document used to outline a potential real estate transaction between a buyer and seller.
The 5th Step occurs after you submit an offer to the Seller. The Seller can decide to Counter Your Offer, Accept Your Offer, or Reject Your Offer. If there are multiple offers, the Seller may counter by asking for your Highest and Best Offer.
The 6th Step occurs after your offer is Accepted. The Attorney Review, Home Inspection and Mortgage Approval are occurring simultaneously.
The 7th Step occurs after the financing is confirmed. The property's utility will be switched over to you, the final walk-through is conducted, the title is transferred, closing costs paid and closing documents completed.