Home Buying Process

Thinking about buying a home? The process can seem complicated and overwhelming, but we will help you through every step of the process. Our approach involves transparency and top tier customer service.

The home buying process generally takes the average buyer as little as 1 month or as long as 6 months to find and close on their new home. Most buyers get it done in 2-4 months.

Here’s an outline of the home buying process.

  1. Loan Pre-Approval (1-2 Days)

    Pre-approval is not required before viewing homes, but it’s a huge help and a recommended first step. To make an offer, you’ll need to have secured a pre-approval letter. The process for pre-approval takes about 15 minutes to apply, then a few emails with supporting financial documents.

  2. Home Search (1-3 Months)

    It’s tough to estimate how long it will take to find your home because everyone has their own pace, preferences, and list of must-haves. It’s important to understand the market before moving forward on a property. For some, this could take the weekend. For others, it could take a few months or longer. Most buyers search for about 1-3 months before starting to make offers, but it’s possible to find your dream home the first day.

  3. Make an Offer (1-3 Days)

    Making an offer usually takes 1-3 days to get under contract, depending on how much we need to negotiate the purchase. We’ll send you a CMA (Comparative Market Analysis), which helps us understand if the home is priced correct and how much is a reasonable offer.

  4. Contract to Close (30-45 Days)

    It takes 30-45 days after being under contract to close. There are several steps within the contract to close phase, and we’ve outlined them below.

    1. Executed Date:

      The executed date is the date that all parties agree and sign the contract. You will have 3 days from this date to deposit the earnest money (typically 1% of sale price) to title and the option fee directly to the seller. Generally, the option fee is 0.1% of the purchase price, butt his can vary)

    2. Option Period (5-10 Days)

      The option period is 5-10 days, at which time the property is to be inspected (about $500). It’s common that your inspector will fine issues or deficiencies on the property, and we will negotiate repairs during this time. If the issues found by the inspector are too severe to move forward, this is the period where you can cancel and still get your earnest money back. The option fee paid to the seller is non-refundable.

    3. Appraisal (2-3 Weeks)

      After the option period is over, you will order the appraisal from your lender. The cost will typically be about $500 and can be paid at closing. Appraisal results take about two weeks after the order. This will verify to the lender that the property is worth what you are paying. If the property doesn’t meet the value, this is another opportunity to walk away from the purchase and still get your earnest money back.

    4. Underwriting (3-4 Weeks)

      This is the review of all loan documents performed by the lender’s underwriter. It can take up to a month. It will start before the appraisal is in, but cannot be completed until after the appraisal is in. It’s normal for your lender to ask for additional documents during this process, but it does not mean the loan is in jeopardy.

    5. Home Insurance and Utilities (5-10 Days Before Closing)

      Time to ensure your insurance is in place and utilities are schedules to be on for the day of closing.

    6. Review Settlement Statement (2-3 Days Before Closing)

      A required disclosure will be provided to you by your lender 3 days before closing and the title company will also provide a settlement statement 2-3 days prior to close. This is one of the most important documents doing closing because it tells you how much money you need to bring with a list of what the money is paying for. You can also request to view other documents prior to closing.

    7. Closing Day (30-45 Days After Contract)

      There will likely be questions about the home and home ownership after closing. We are here to help you and provide resources to guide you including vendor referrals. Our relationship won’t end, as we are happy to ensure your transition goes smoothly.

Contact me with any questions or to get started on your new home purchase.

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