BUYING PROCESS
HOME BUYER’S GUIDE
For many people buying a home is the most expensive purchase of their lives. As your Realtor it is my job to keep you informed every step of the way so you feel comfortable and confident about your purchase. Every transaction is different, but here is a general overview of the buying process.
Get Pre-Approved.
After speaking to lenders and finding one that you are comfortable with, it’s time to get pre-approved. Your lender will give you a purchase budget, a tax budget, and help set closing cost expectations.
Define Your Criteria.
It’s time to set your home search criteria. In addition to your budget, it is important to know where you would like to buy, what type of home you are looking for, your bed/bath count, and any other must have features. From there I will send you custom listings. The more defined our search, the more accurate the results.
View Homes.
When you see a listing you like, we will set up a showing to see it in person. In addition to viewing the house itself, you want to take a look at the the surrounding homes and the neighborhood as a whole to see if it is the right fit.
Submit Offer.
Once you find a home you can see yourself in, it’s time to make an offer. Every transaction is different. How much you offer and your terms are dependent on the market, asking price, and your situation.
Accepted Offer.
The seller has a few choices. They can accept your offer, hold your offer as a back up, reject your offer, or counter. Not all counters are price related. Sometimes the negation is over terms.
Attorney Review.
Once the offer is accepted you enter attorney review. Since we use lawyers in northern Jersey there is no set time frame for this phase. During this stage either side can back out for any reason without penalty. Selecting a knowledgeable real estate attorney is a HUGE part of a successful transaction.
Due Diligence.
Once attorney review is concluded you go under contract. We try to do most of our free due diligence, such as requesting an OPRA, asking for condo regulations, etc. while in attorney review. When we are under contract, we do our paid due diligence, such as a home inspection, oil tank sweep, and ordering title.
Repairs & Credits.
Once both sides receive the home inspection report, negotiations can begin. The seller can choose to pay a licenced professional to make the repairs or they can offer you a credit at closing.
Appraisal.
Most buyers purchase a home using a mortgage. The lender will send their appraiser out to ensure the home is worth the agreed upon sale price.
Once your appraisal comes back at or above sale price, provided there is no major changes in your employment or credit, your lender will issue a mortgage commitment. This states that they will provide you financing at an agreed upon rate.
Title.
Your lawyer will order a title search and insurance. A title search looks at all the previous owners to ensure there are no possible claims to the property. Title insurance is a one time payment that covers any future claim of ownership made on the property prior to you purchasing it.
Final Walk Through.
Once all negotiations are done, you get your mortgage commitment, and title comes back clean, you are clear to close. Prior to closing we will do a final walk through to ensure the house is in the condition it was when you made your offer, than any agreed upon repairs were made, and the house is being delivered as expected.
Closing.
This is the actual sale transaction. At this point the money is transferred from the buyer/lender to the seller. Sometimes sellers attend closings, other times they have signed the paperwork in advance. Once the seller receives the money and all paperwork is signed and notarized, you will receive the keys to your new home. My job at the closing… to take a bunch of pictures so you remember the special day!