If you are new to the Home Buying process you may be shocked at just how many steps are involved in the home buying process. It is important that none of the steps be overlooked and that they are completed in a timely manner. That is why it is wise to seek the counsel of an experienced Realtor, such as myself.
I have outlined the major steps in buying a home to give you an overview of the entire process. There are many more little steps involved, and I will guide through those steps as you proceed through the home buying process.
Congratulations! You have made the decision to purchase a home for you and your family. The first step is to meet with your Realtor to discuss your time frame and your requirements.
As your Realtor, I will arrange for you to meet with one of my great lenders. At this time you will begin the loan application process and determine how much house you can afford, what payment you are comfortable with, and what type of loan program may be best for you and your unique situation.
Once you know what price range you will be looking in, you will review a list of homes that meet your requirements in terms of location, bedrooms, bathrooms, ranch vs. 2story, and anything else you are looking for in a new home. I will then schedule a convenient time for you to preview these homes.
When you have found the house that you want to make an offer on I will provide you with the comparable homes that have recently sold in the neighborhood. Based upon this information you will decide the price that you feel comfortable in offering.
I will prepare the contract on your behalf and review it in detail with you. One thing to remember is that your offer must be in writing and it must be accompanied with an earnest money check. The "earnest money" usually amounts to no more than 1-2% of the purchase price, and it indicates to the seller your "good faith." The Contract To Buy And Sell Real Estate will contain many dates and deadlines, including the following:
If the seller does not accept your "offer" then there will be more negotiations in the form of a Counteroffer. Once your offer and any counteroffers have been agreed upon by both the seller and yourself, your earnest money will be cashed and held in an escrow account until closing. Don't worry; your earnest money will be credited towards your down payment and closing costs at the time of closing.
Since you have already completed the loan application process you will now schedule any inspections you wish to have performed on the house and its' inclusions. This typically includes an inspection by a Certified Home Inspector, and often times a Radon test. I can provide you with the names of several inspectors. As the home buyer you may also want to consider some additional testing such as:
After the inspections are complete I will prepare a list of inspection defects for the seller to correct. This must be given to the seller on or before the Inspection Objection deadline or you will forfeit your right to object to any conditions or defects in the house. If there is no resolution of the inspection items between the buyer and the seller the contract will terminate 24 hours after the inspection resolution deadline and the earnest money will be returned to the buyer.
You must also obtain Homeowners Insurance in a price and term that are acceptable to you by the date specified in the contract. The contract may be cancelled by the Homeowners Insurance Objection Deadline if the price you are quoted for homeowners insurance is unacceptable to you.
Next in the process of purchasing a home is the appraisal and loan approval. There is a date specified on the contract by which time the appraisal must be completed. If for some reason the house does not appraise for the sales price, and you fail to notify the seller of this fact by the appraisal deadline you will forfeit your right to terminate the contract under the appraisal provision. An acceptable appraisal is usually the last condition needed prior to loan approval. Again, the contract will specify a date by which you must have written loan commitment. If for some reason you do not have loan approval by this date, and you fail to notify the seller of this fact, you will be subject to forfeiting your earnest money if you fail to close.
Preparing to move is a very busy and hectic time. There are so many things to think of and do. Below is a partial list of things you may want to add to your list.
The closing is normally held at one of the local title companies. Your lender will review your closing figures with you before closing. If you are bringing money to closing you will need to bring a cashier's check. Only "good funds" are acceptable at real estate closings in Colorado. I will attend the closing with you, and be there to answer any last minute questions that you may have.
Move in and enjoy your beautiful new home!
This is a brief outline of the many steps involved in purchasing a home. There are many more steps and important dates that must be met. If any of these dates and deadlines are missed you may forfeit some of your rights under the terms of the contract. That is why it is so important to work with a qualified real estate professional. I would be happy to meet with you and discuss your home buying needs. Give me a call to arrange your personal home buyer’s consultation.
