Home Buying Timeline

Congratulations on taking the first step on your journey to buying a home. You are doing the right thing by doing your research before diving right into this exciting but daunting process. This process can be overwhelming at times, but untimely it's a lot of fun to search for your dream home. Let's dive right into this timeline so you know everything that's involved with the process of buying Real Estate.

Pre-Approval From Lender 

The first step in the home-buying process is to meet with a lender and talk about getting pre-approved. This is the most important step because it will set your price range for the home you are comfortable paying for. Within this stage, you will learn all about the different loans that are available. Some examples of these are FHA, VA, Conventional, and USDA. There are a lot of different loan options available and the lender will be able to help you pick the one that fits best. This step lays out the groundwork for a smooth home-buying process. 

Improve Credit Score 

Improving your credit score might be something a lender will have you do. You will have at least three different lines of credit, like credit cards, car loans, student loans, etc. They will use your experience to see if you will qualify for a home loan. The better the score and experience normally the better interest rate you will be able to obtain. 

Pre Showing Meeting

You will meet or talk with your buying agent about everything you want to be included in your home. We will talk about square footage, bedrooms, bathrooms, lot size, and everything that is a part of your dream home. We will then set you up with a home search throughout our MLS. These homes will be sent to your email and you can locate the homes you truly love the most. Then we will schedule a day to look at the homes that peak your interest.

Buyer Agreement Form 

Due to recent law changes within the United States and the National Association of Realtors, all Realtors are now required to have the prospective Buyers sign a Buyer Agreement form. This form layout out duties to you and how we will get paid as a buyers agent. This form is also required before we step foot into any homes. If you have any questions please feel free to talk to your Realtor. 

Showing Homes 

This is a very exciting time in this process. We will schedule a time to tour the homes that you selected that meet your criteria and are within your price range. We will then select a date and time that fits your schedule and line up all the homes you are interested in. This will be a long day and some of the homes might not be what you expected, but it's important to be relevant and keep pushing until we find the perfect home for you. Wear comfortable shoes that you can easily slip on and off. 

Review Disclosures

Once you have found the perfect home that you have been looking for it's time to review some of the disclosures this property has. It will always have a Seller disclosure that will highlight some of the property's main systems and whether they have had any issues or repairs with them. We will review this disclosure and you will have to sign it saying that you recognize these faults or repairs. Other disclosures that may be a part of this home depending on age and condition are radon, lead-based paint, and septic disclosure. Not every property will have these, we will review the information to make sure there isn't anything we do not want to deal with when we come to inspections.

Make an Offer

This is another exciting part of the process. You have selected the home that meets your needs and your price range. We have also gone over the disclosures that are involved with the property. After all of that, we will start to build an offer on the property. This will include the purchase price, earnest money, closing date, possession date, inspection, and a lot more. Those are the main points of the purchase agreement, but we can also add our requirements with a purchase addendum. After we have built the offer we will add an acceptance date which requires them to respond to our offer within a certain timeframe. 

Negotiate

The listing agent on the property presented our offer to the owners and they didn't like some aspects. They can either counter or cancel the offer, but most will counter. We will then look at what they want differently and either accept, reject or recounter the offer. This can be anything from the purchase price, inspection date, closing date, etc. Both parties can go back and forth on this until both parties are satisfied with the offer and ready to move forward to the signing stage. 

Earnest Money 

Once the offer is accepted and fully signed the Buyer has three banking days to submit the earnest money to the Sellers. Earnest money shows good faith that you are very interested in completing the sale. The cost of earnest money can vary depending on the cost of the property and the size. Once we are at the closing table this earnest money will go towards the purchase price of the home.

Home Inspection

After your offer is accepted you will schedule a home inspection. This is a critical step and can be worrying for both parties. This inspection is a part of the Buyer's cost and the inspection period is normally seven days after the acceptance of the offer. A home inspection covers things like the structural aspect, heating systems, cooling systems, plumbing, and electrical work. The inspector will look into each of these systems and make sure they are functioning properly and running to the best of their ability. They will make sure that the electrical work is up to date. They will make sure that the plumbing is also up to date and in working order so your sink and toilets will be able to drain properly. 

Negotiate Inspection 

Sometimes when the inspector is done looking at the property there may be minor or major damages that need to be addressed before we move forward in the closing process. We can address all of the issues we want them to fix or take money off in the inspection addendum. They can also negotiate the items we requested to be fixed and say that we are only going to fix the lights, siding, and windows, but we are not going to fix the foundation or water damage in the basement. This can also go back and forth until both parties find a common ground and are ready to move forward. If there is no common ground the Buyer can step away and have their earnest money refunded. 

Abstract Update

 Once all negotiations are complete it's time for the Sellers to pay to update the abstract. This ensures that all legal documents are current, correct, and reflect the sale of the property. This is a vital set to protect and insure your ownership rights to the property. 

Title Opinion 

After updating the abstract a legal expert will review the title of the property. This is a Buyer's cost within the process.  The lawyer will review the title of the property and look into its history. They will ensure that there are no liens or judgments against the property that could affect your ownership. 

Loan Commitment 

Within this stage, we will send the lender all the valuable information they need to start the underwriting process. This is where they will set all the terms of your loan. They will confirm that your financing is in place and review all documentation before closing.  

Termite Inspection 

Termite inspections are a good thing to complete and some loans require this to be done. This inspection will look into the guts of your home to see if there has been any sign of termites slowly eating away at it. This is normally a Seller's cost and if there is any damage, the Seller needs to treat and take care of any damage that the inspector deems necessary. If the steps that the Seller will take is not acceptable to the Buyers, the offer can be declared null and void, and earnest money returned. 

Appraisal 

The appraisal is required by the lender to ensure their investment in your property. This is a Buyers expense since it's a part of the lender process. If the home doesn’t appraise above the listing price the Buyer will normally have to pay the difference or negotiate to have the price of the home lowered or declare the offer null and void.

Homeowners Insurance 

Insurance is required if you are purchasing this home under a lender. The lender will also need the binder of all your insurance information to be forwarded to them. Insurance also covers your investment if any unforeseen issue happens. 

Arrange for Utilities 

Once we get to the final week of our closing process you will need to contact the electrical, gas, and water providers of this home. You will need to give them your new address and the time that you will need the utilities to be turned on. This is important because you don't want to show up to your new home and not have any power, heat, or water. 

Final Inspection and Walkthrough 

This is the last time that you will step foot in this home and not be the owner. This final walkthrough is normally a day or two before your closing date. We tour the home to make sure that everything is fully moved out, there is no extra damage, and that they have met all of our inspection items we agreed to have fixed. 

Close on loan 

The Buyer will work with the lender on a time and place for the closing date.  All the documents to finalize the purchase will be signed. This includes mortgage documents, the deed, and other legal documents that are needed to finalize the sale. 

Possession and Move-In 

This is the final stage in the process! Congratulations, you made it through the whole thing. There is where they will give you the keys and all the items that are included within the home. You can also look into getting a home warranty to protect the major components of your home. Also, contact the post office and let them know about your new address. Start moving in everything! This can take a while, but if you can make it through the buying process you can do it!