The Buying Process

THE BUYING PROCESS

Get pre-qualified for a mortgage.  You need to know exactly what a lender will give you for a mortgage before you start to look at properties.  In fact, most agents will only work with pre-qualified Buyers.  It doesn't cost you a thing and only takes an hour or so of your time.  Your agent will be happy to recommend some.

Have a licensed agent show you properties within your price range.  The agent will be working as your representative and will be looking out for your best interests and can show you any listed property regardless of who the listing agent is.  He or she will ask you to sign an "Exclusive Right to Represent Buyer Authorization".  By law we cannot show you any other agency's properties until this is signed. 

Once you find the property you want, sit with the agent to write an offer.  Be prepared to give a check for the first deposit with the offer, usually $500-$1000.

Your agent will most likely enter into negotiations with the Seller's agent.  She or he will explain the process to you.

Immediately upon acceptance of an offer:

1.  Make arrangements to apply for your mortgage Notify your loan officer that you have found your home and have a signed contract.

2.  Order any inspections you are having (your agent will accompany you to these.)

3.  DO NOT jeopardize your mortgage by taking out any new loans, running up existing charge accounts or applying for any new credit cards without first checking with your lender.

4.  Get all required paperwork to your lender ASAP!

Within three to five days of acceptance (whatever the contract specifies) give your agent the second deposit (this amount will vary depending upon your available cash and whatever mortgage program you'll be applying for.)

Start Packing!  Most buyers start packing when they receive their mortgage commitment.  As a rule, there will probably only be about one or two weeks between the time you get your mortgage commitment and the time of closing.  (The total time from the point at which your offer is accepted until you close varies but is usually around six to eight weeks).

Notify Current Landlord of tentative moving date, if applicable.  Ask your agent about when to notify your landlord.  Most buyers give notice once they have received their mortgage commitment.

Arrange for your homeowner's insurance.  (You will have to have the first year in advance of closing.)  Your agent can recommend insurance companies for you.  This can be done once you receive your mortgage commitment.  Your attorney will remind you that you need to do this.  In the meantime, you can start shopping for insurance companies.

You will need to arrange for a moving company, if applicable, and notify the utility companies, post office, magazine and newspaper subscriptions, etc.

Plan on doing a final walk-through of your soon-to-be new home, with your agent, within 24 hours of closing.

Your closing will take approximately 30 to 60 minutes, although some do run longer.  Be prepared to sign, sign, and sign some more! The closing will most likely take place at the bank's attorney's office.  The attorneys set the actual time and date.  If there are any specific times that are better or worse for you, please make your attorney's office aware!

Once everything is signed and you have paid all your settlement costs, you will be given the keys to your new home.