Buying a home is usually the most expensive purchase a person will make in their life. Because of this, and especially for first time home buyers, the process can seem daunting. The good news is, it doesn’t have to be! This is why real estate agents exist: to guide you through every step of the process, and give you expert advice at every turn.
If you’ve never bought a house before, or it’s been some time and you’d like a refresher on how it all works, you’ll find the 12 main steps involved below.
1. Financial planning: plan for your down payment, closing costs and reserve savings; get pre-qualified
2. Find a Real Estate Agent: see our post on What Should Your Agent Do For You?
3. Get pre-approved for a mortgage (if you need one): select a lender and submit required documentation
4. Shop for homes with your agent: the fun part! Think House Hunters
5. Make an offer: decide on terms with your agent and send a contract to the seller
6. Deposit your earnest money: send in your wire or cashier's check to the escrow agent
7. Schedule an inspection: have your potential home checked out by a qualified inspector
8. Secure home insurance: obtain before your loan closes
9. Underwriting process: final approval by the lender for your loan
10. Appraisal: lender will have the home appraised at fair market value
11. Just before closing: look over and sign closing disclosure, prepare to pay closing costs, attend final walkthrough
12. Close on your home! sign final documents with escrow and get the keys from your agent
