Common Steps in a Residential Home Purchase
Purchasing a home is exciting and fun, however there are many decisions to make along the way. To keep the purchasing experience from becoming stressful and frustrating educate yourself. The best place to gain this information from is your real estate agent and the internet.
The following is a basic list of the steps in a Residential Home Purchase.
Select a real estate agent.
- At your first meeting, determine your needs and wants
- Determine financial eligibility
Loan Qualification
- Discuss loan options and your buying power.
- Obtain loan approval from lender.
- Funds needed to purchase a home.
View Homes
- Tour possible homes with your agent
- Select an affordable property that fits your needs
Present and Negotiate Offer
- Discuss offer with agent
- Buyer reviews contract with agent
- Agent presents offer to selling side (with earnest funds)
- Seller accepts offer: Seller can accept your offer, counter your offer, or reject your offer.
Escrow
- After offer is accepted ‘earnest funds’ will be deposited into escrow
- Contingency Escrow Period:
- Conduct physical Inspection of property by a qualified inspector
- Approve Seller’s Transfer Disclosure statement
- Approve Preliminary Report
- Conduct property appraisal
- Perform termite inspections and certification
- Obtain Homeowner’s Insurance
- Obtain Home Warranty Insurance – Optional
- Sign documents
- Transfer or send cashier’s check for the additional down payment and/or closing funds prior to closing
- Closing the Escrow
- Lender sends balance of purchase price to escrow
- Deed is recorded with County Recorder’s office
The House is now Yours!
You receive your keys and move in!