Everything you need to know about the process of buying a new home.
Buying a home is one of the most exciting milestones of your life. To prepare yourself for this moment, you need to know what to expect during the process. This step-by-step first time buyer’s guide created by your agent will help reduce the stress of buying a home and help you enjoy the journey as much as possible.
Before beginning your search, your first step is to get pre-approved for a mortgage loan (unless you will be paying the full price of your home in cash). Our team can connect you to a mortgage broker. Based on your income and credit history, the mortgage broker will determine how much a bank will lend you, which will help you determine the price range for your search.
Now is the time to consider your ideal home’s location and amenities. You will attend viewings and open houses spanning a range of areas and property types.
Once you identify a home you like, you can put in an offer, which is an agreement to pay a certain price for the home. This offer is packaged with a Proof of Funds (POF) and a Pre-Approval Letter. Note: if your offer is lower than the list price or with terms not acceptable to the seller, the seller will likely return with a counter-offer price or acceptable terms, which you can accept, reject, or make another counter-offer. Our team will provide advice throughout.
(Life of an Escrow: 30 & 45 day escrow period)
Day 1 Once the offer is accepted, escrow is officially open and the clock begins on contingencies*
Day 2 Contact your insurance agent for homeowners coverage
Day 3 Initial deposit is due per terms of the agreement
Day 1–17 Seller delivers disclosures to buyer. Buyer performs inspections (Step 6)
Day 1–21 Loan is in underwriting and appraisal occurs (Step 7)
Day 7–30 | 21–45 Seller signs grant deed and staging is removed if any (Step 7) End of Escrow Within final week
of the escrow period, buyer signs loan and closing documents and wires in closing funds (Step 10)
Day 30–45 Loan funds and escrow closes (recordation)
It is the buyer’s duty to schedule all desired home inspections and determine the overall condition of the property within the agreed timeline and contractual contingencies. The buyer will also review the disclosures and preliminary title report. You may approve or negotiate credits/repairs. Prior to closing, remember to schedule a final walk-thru of the property to verify property is still in acceptable condition and any negotiated repairs were done.
Organize an appraisal with your bank. Your completed mortgage application with all supporting documentation should be submitted to your chosen lender upon receipt of the fully signed Purchase Agreement. The bank then issues loan approval. Consequently, the buyer wires the closing funds with the homeowner’s insurance in place, and then the loan will be funded with clearance to close.
Congratulations! You are now a homeowner.
After signing the final paperwork to complete the purchase, you are now the owner of a new house. It may take a few days for your loan to be funded once the paperwork has been returned to the lender, but once that check is delivered to the seller, you’ll be all set to move into the home of your dreams.
For sellers, our goal is to ensure that you earn the maximum profit for the sale of your home, without leaving any money on the table. For buyers, our goal is to help you win a home that is within your price range so that you can maintain the lifestyle that best serves you and your loved ones.
