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Re: Home buying process
Sure! Here are the basic steps to the overall process. Feel free to FM me if you have more questions or if you need some help with your search.
1. Figure out what you can afford to spend (and what you want to spend) by talking to a mortgage professional or several. It never hurts to shop around to see what they can offer you in terms of loan products, rates, etc. Get a preapproval letter (you will need to submit one with any offer you make).
2. Select a real estate agent to work with, and decide whether you want to be represented by a buyer's agent (which would involve signing a buyer's brokerage agreement). I recommend working with a buyer's broker, so that you have someone safeguarding your interests throughout the process, but you should probably get together with an agent a few times and view homes to see if you "click" before you sign a contract with them. If you choose not to get a buyer's agent, I still recommend working with one agent consistently who knows your needs and wants and can keep an eye out for homes for you.
3. Figure out what you must-have in a home, and what you'd like to have, and narrow down your preferred areas. My clients who have found their homes most quickly have all known what they have wanted and had a pretty narrow criteria in terms of where they wanted the home to be located and there must-haves. But before you narrow your list, I think it helps to educate yourself about what's on the market and see a few styles of homes and homes at various price points. Figure out if you want to do "work" or want a "move-in ready home" and make sure you explain to your agent what those terms mean to you (because they are pretty subjective).
4. When you find your home, you will make an offer, in writing, that you will submit with a preapproval. Your agent can show you the "Sales Agreement" form that will be filled out when you make an offer.
5. If your offer is accepted, you will want to have a home inspection done right away, so you should have an idea of who you will want to use for the inspection. Do your research now (or ask your agent for recommendations). It helps to have both the home inspection AND the termite inspection that banks require done at the same time.
6. Once the home inspection is done, you will proceed to contract. The seller's attorney will prepare the first draft and negotiate the terms with your attorney. Once the contract is finalized, you will sign first, then the sellers. Until both parties sign, there is no firm commitment on anyone's part (e.g. sellers can accept a higher offer), so you want to get the contract signed asap. For this reason, have your attorney selected ahead of time (and make sure he or she is a real estate attorney who regularly handles closings).
7. Once the contract is signed, you apply for your mortgage. The bank will send an appraiser to appraise the house (you won't be there for that). If all goes well, you will get a mortgage commitment. If there are no outstanding issues (for example, missing COs/permits on the house), you will get the clear to close).
8. Right before closing, you will do a final walk through with your agent to make sure everything in the house is still in the same condition it was at the time you made your offer. At this time you usually get info from the sellers, such as manuals for appliances, remotes for the garage, etc.
9. Closing - you will sign a bunch of documents, get the keys, and the house is yours! The attorneys handle the closing.
Short sales -- and there are many on the market right now -- are handled a bit differently (there are some different/additional steps) and they take longer.
Good luck!
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