10 Steps to Buying a Home
With every home buying experience, there is a formula to success. Knowing where to start and actually getting started are often the hardest parts, but The Heyl Group, with its wealth of experience knows the path. Let us help lead the way and let our agents chart a course.
You are not in this alone. Your Heyl Group agent will be there every step of the way and at this stage will engage other parties through its boundless network of trusted lenders and key players to ensure that the right people are in place is paramount to make for an easy home buying experience.
Working with a lender to understand financing options and to set expectation of price range and budget is the next step. Here, the lender will run a credit check, verify monthly income, assets, debt-to-income ratio, and determine how much you can borrow. The result of this will be a “Pre-Approval” letter that will be a source of reassurance to any potential sellers.
The agent will set up a search based on parameters that you set, and have homes that meet that criteria pushed to you on a regular basis. Next, the agent will spend time with you on the properties that you want to see as well as additional time on their own, researching and even scouring properties that may not be listed yet.
Offer & Negotiation
You’ve found your dream home! Time to make an offer. Based on market research as well as that research that was discussed earlier, the agent will help identify the right offer for the home and work tirelessly at negotiating and ensuring your offer has an excellent chance at being accepted.
After an offer is accepted, your agent will again reach deep into his network and recommend some of the most qualified and experienced inspectors for you to choose from. Yes, we understand that this is your dream home and it’s hard to believe that there can be flaws, however the inspection process aims to be thorough and make sure the investment you are making is a safe and wise one.
At the end of the inspection, there may be additional work that needs to be done at which point, your agent will enter back into negotiation. Generally, should something glaring surface during the inspection phase, your agent has already negotiated a 7-10 day option period where amendments or cancellations can happen.
Inspection has passed, amendments have been made and your closing date is approaching. This would be the time to engage your insurance company who will then reach out to your lender on policy details. Payment for the first year premium will happen at closing at the Title Company.
Appraisal & Survey
If you are getting a loan on the property, the lender will send an appraiser to give his independent assessment of what the house is worth. The appraiser has the final word on whether the home you are buying is worth the contract price. Should the home not appraise for the sales price there would be several avenues to discuss what happens next.
Additionally, you may also be required to have a survey of the property. The survey is a depiction of the boundaries of the property and of the dimensions of the structures on the property.
Throughout this process of searching, inspecting, and appraising, your lender has been working to finalize the paperwork on your loan. Additional items may be required during this time, but all of it is meant to ensure a clean and efficient closing. Often, a lender will require notification of any major purchases, new debt, or lowering of cash reserves as these issues may impact a final approval. Once everything is approved, all items will then be submitted to the Title Company where your closing will take place.
This is the final step. At the Title Company, you will sign all the requisite documents. Once all parties have signed, the bank will be notified a funding will take place. The home is now yours!