Buying A Home: 17 Steps To Success

Buying a home is a very important decision in your life and there are quite a few components of the process that you need to pay attention to as you move towards closing on the new house. Here are 18 steps that you need to know about before you start the process.

1. Hire a buyers agent. This is crucial because you need someone on your side who knows what to do and how to do it.
2. Get prequalified. Ask any agent and they will tell you that some lenders are just better than others at getting the job done.
3. Look for homes. Start looking for homes that make sure that you know what you’re looking for before you start.
4. Write a purchase and sale agreement. This is where you lay out your offer price in terms of the home purchase.
5. Negotiate and right counteroffers. This is when a good buyers agent comes in handy and their negotiation and experience can save you thousands.
6. Deposit your earnest money. Usually after the offer is accepted your earnest money will be deposited in a trust account.
7. Open escrow. Your buyers agent will coordinate the step and get all the required paperwork to the title company.
8. Order an appraisal. Your lender will usually coordinate the ordering of the appraisal and the appraiser is someone who is essentially working for the bank to make sure the value is there.
9. Seller disclosure forms. The seller list their home they typically fill out a seller disclosure form that discloses anything about the property that they know of.
10. Homeowners insurance policy. Coordinate with your lender make sure your insurance policy and binder is ready for closing.
11. Get your home inspection. This is probably the most important part of your home purchase even if it is a brand-new home.
12. Inspection contingency release. This is a form that you provide to the sellers laying out your terms based on the inspection.
13. Removal of all other contingencies. You need to take care of any other contingencies that you have that were written into the purchase and sale agreement.
14. Do a final walk-through of the property. This is done to make sure that the repairs are done that were required in the inspection.
15. Sign. This is when you go to the title company and sign your loan paperwork with the escrow officer.
16. Deposit funds. You need to write a check for your down payment and closing costs and the bank needs to transfer money to the escrow company to close the deal.
17. Close of escrow. Now everything is back into the escrow company they can find and record on your brand-new home.
2.5.2010 12:55 PM
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