Header Image

What Is The Home Purchase Process?

 

For most people, finding the right home begins with a house-hunting strategy combining personal preferences, guidance from others (such as myself) and a mix of neighborhood exploring and online search.

For some, the search takes a while; others find what they want right away. In either case, I will be a resource of insight and guidance, working through issues or complications that arise along the way.

Here’s a general outline of what to expect during a home purchase, from the buyer's perspective.

Buyers make a purchase offer.
This is it! You've found the home of your dreams, looked over disclosure documents, reviewed comparable sales data, talked it over with your agent and submitted an offer. The sellers may accept your first offer, but more often will return a counteroffer. In fact, additional negotiations are common, and I will help you through this generally stressful stage.


The sellers accept.

Once everyone is happy with the terms, the parties have reached what is known as mutual acceptance and enter into a purchase and sale agreement.

Buyers put up earnest money.
To solidify your intent to buy, you'll place a deposit, or earnest money, on the property. The amount varies, but is generally at least 1 percent of the purchase price. You'll write the check to the escrow company, not the seller. Note: This money counts toward your down payment later.

Escrow opens.
The earnest money deposit goes into an escrow account, where all funds will be held until closing, when they are then distributed to the right people (lender, mortgage broker, title insurer, real estate agents, etc.).

Buyers apply for a mortgage.
This step is streamlined if you've already been preapproved for a loan (which is a smart thing to do). If not, you'll begin the loan application process now.

The lender inspects title history and orders a property appraisal.
The lender needs key information about the property before granting a loan. This is when potential problems can come to light. For example, the appraisal could show a lower value than the purchase price, or the lender could have trouble finding comparable homes. Also, the title search could turn up liens or other problems.

A home inspection takes place.
You'll hire an inspector – generally, I can suggest some and will offer you a list of different inspectors – to check the home and point out minor and major problems that should be fixed before closing. At this point, you still have the option of backing out of the deal. You need to be careful here, because if you request the seller to perform work, or ask for money, then you have legally created a counteroffer, and the seller may have the option of backing out and taking a better offer it one has come in.

Removing contingencies.
If the house passes inspection, appraisal and title search, and everything is good to go, then all contingencies can be removed, paving the way to a closing.

Closing time arrives.
Once contingencies are removed and financing is set, all parties sign documents, and the transaction closes.

Packing begins!
When the final signatures are in place, it’s time to put down the pens, shake hands, and deliver the keys!

GET IN TOUCH

Community Updates

Omaha Beach

Omaha Beach in West Lake Okoboji

Omaha Beach is on the north end of Echo Bay, extending out into Omaha Point. Known for its secluded private access from Lakeshore Drive, Omaha Beach properties are some of the most sought after on West Lake, easily fetching over $15000 per linear foot of lakeshore.

Dixon Family Chiropractic

Dixon Family Chiropractic in Spirit Lake

Dixon Family Chiropractic is a clinic located on Hwy 9, east of Walmart, next to Pizza Ranch and has convenient hours.....open 6 days a week at 7:30 am, evenings and Saturdays. Formerly in the convenient health care building south of the 4 way stop in Spirit Lake, Wade and Adalee offer a friendly staff and professional services.

Test By QA

Test By QA in Albert City

Test By QA

Subscribe To Our Newsletter

The newsletter is sent periodically and will update you on the latest real estate news and offers.