For many, the home buying process can be a mysterious one, but it doesn’t have to be. The process will be different for everyone depending on various factors, but here is a general idea of what you can expect.
Finding your new home: You and your realtor will search for homes until you find one that you want to make an offer on.
Making an offer: You and your realtor will discuss what price you want to offer for the property. You’ll also discuss terms of the offer such as inspection period time frames, other home sale contingencies, financing contingencies, inclusions and exclusions for the home etc. Your Realtor will present this offer to the seller’s agent.
Negotiating final terms of the offer: Once the offer is presented, the buyer’s and seller’s agents will be in communication with each other with counter offers until final terms and conditions can be settled upon.
Financing: If the buyers are financing, they should now contact their lender and begin the loan application and approval process.
Inspections: Buyers usually will have a 10-15 day period in which to have any inspections done. Once these have been completed, the buyer’s agent will prepare an inspection response for the sellers. This document will list any repairs requested by the buyers. Your agent will then negotiate with the sellers to come to an agreement on exactly what they are willing to do or not do.
Appraisal: The lender will have an appraisal scheduled for the property. If the property appraises, all is well and buyer and seller will proceed to the sale. If the home does not appraise, then further negotiations are in order.
Getting a clear title: The title company will open a file and search many. many records to ensure that the buyer is purchasing a property with a clear title.
Final loan approval: Once the inspections have been completed and repairs settled upon and the appraisal has been completed, the buyer then continues to work with the lender to get loan approval.
Closing: After all of the above items have been completed, the buyer and seller can then set a date for closing. Closing takes place at the title company where all sides will be present to sign final purchase documents.
This is a very general break down of the entire home buying process. Each transaction is different, but this is a good idea of what to expect.