You can fill out a simple online form to find out how much of a mortgage loan you can qualify for. Once you have decided to go with a specific lender you will ask for a letter of pre-approval. The pre-approval letter the lender issues you will help you be taken more seriously by agents and sellers because they will recognize you as someone who is financially prepared to buy. To receive four free quotes instantly, go to our Mortgage Page, and submit a short application that takes less than five minutes.
2. FIND AN AGENT (SPECIFICALLY, A BUYER'S AGENT)Using an agent can help you in numerous ways. Both the seller's agent and the buyer's agent are paid out of the transaction proceeds that are included in the selling price of the home. If you don't take advantage of an agent, you are paying for services you aren't getting. Agents will negotiate with you on their fees and the amount of service you will receive for those fees, and you can arrange for them to be paid out of the transaction. If you are planning to buy a home available through foreclosure or a for-sale-by-owner (FSBO), you can still use the services of an agent. You can review real estate agent services on our Real Estate Agent Page
3. SIGN A BUYER'S AGREEMENTA buyer's agreement is a contract that allows one agent to represent you as a buyer. With a signed agreement, the agent becomes a fiduciary and must act, by law, in your best interests. BE AWARE OF YOUR LIKES AND DISLIKES! Your home will not be perfect. Think in terms of possibilities as well as what-you-see-is-what-you-get. Perhaps a home isn't move-in-perfect, but with a little work it could be the perfect home for you. Don't let cosmetic or minor remodeling problems discourage you. Many remodeling jobs add tremendous value to a home.
4. WRITE A CONTRACTWhen you find the home you want, you will write a contract, either through your agent, your attorney, or on your own. Your offer should spell out what you are willing to pay for and what you are not, when you want to close, and when you want to take possession of the home. Your contract should be contingent upon getting an inspection and evaluating the results. If the inspection reveals a big problem, you and the seller can renegotiate the purchase price. You can download standard agent contracts from your state's department of real estate.
5. Start the Loan ProcessAs soon as the seller agrees to the contract, you must start following through on your loan. Take the contract to the lender and start the loan process. If you have been pre-approved, much of the preliminary work has already been done and your request will be processed more quickly.
6. ESCROW BEGINSAll of the documents needed to transfer the property are gathered and the escrow period begins. Depending on the specific details of the property transaction, escrow usually takes 30 to 90 days. Your real estate agent will negotiate the details of the transaction and keep you posted on the progress of the escrow.
7. THE HOME IS APPRAISEDThe lender will arrange to have the home appraised. Most lenders will have a ceiling on the price per square foot that they will lend in a certain neighborhood. If a home is overpriced, it will quickly become obvious.
8. THE HOME IS INSPECTEDIn many states, you will have the inspection after the contract is signed, rather than before. This is better protection for the buyer. You might find problems that must be fixed before the home can be transferred. The seller then has to arrange to pay for these repairs, or have the repairs paid for out of the contract proceeds. Before you can truly set the closing date, the repairs have to be made and approved by the buyer.
9. NEGOTIATIONS CONTINUE AS YOU GET READY TO MOVEAs you find a mover, pack your things and arrange for days off from work around the closing date. Prepare to be flexible, things happen.
10. YOU GET THE KEYSIt's all over. Congratulations! The home is yours!
