While the standard down payment is 20%, many buyers go with lower down payments, especially if they qualify for certain loan programs (FHA, VA, etc.).

 

 

This is one of the most important steps. A pre-approval letter from a lender tells you exactly how much you can borrow, so you can shop with confidence. It also makes your offer more competitive when you find the right home.

 

 

Your Realtor should be responsive and easy to talk to. Buying a home can feel overwhelming at times and having a Realtor who keeps you informed and listens to your concerns is a crucial aspect of a smooth buying process. 

 

 

This is one of the most important steps. A pre-approval letter from a lender tells you exactly how much you can borrow, so you can shop with confidence. It also makes your offer more competitive when you find the right home.

 

 

Commitment to Your Interests: When you sign the agreement your Realtor becomes legally commited to representing your best interests throughout the buying process. This means they'll work to get you the best price, terms and overall deal, and not just act as an intermediary.

 

Clarity and Transparency: It sets clear guidelines about services provided, commission structures, and your Realtor's responsibilities. It also clarifies what happens if you decide to work with another Realtor, and when and how their compensation is structured.

 

Better Service: Because your Realtor is committed to you, they'll be even more proactive in sending your properties, pushing you to get important tasks completed, negotiating offers and providing advice. It gives all parties peace of mind knowing that you've formally committed to working together.

 

 

The agreement should outline the length of the contract (usually 6 - 12 months), what happens if you want to terminate the relationship and any specific details about the Realtor's services and commission. If there's anything you don't understand or feel uncomfortable with, be sure to ask questions before signing.

 

 

Understand how much home you can afford. You'll get pre-approved for a loan but the maximum amount your approved for may not be an amount you're comfortable with. Get clear on the monthly payment you feel comfortable with and know the amount you're wiling to "stretch" if that perfect home is a bit out of your comfort level.

 

 

Do you need a large backyard? A home office? Certain number of bedrooms or bathrooms?

This is where you have to get clear about what you NEED versus what you WANT. Make a list of must-haves and nice-to-haves.

 

 

Open houses give you the chance to "window shop" and get a feel for the home and the neighborhood. They also give you a chance to meet the listing agent and get more information. Just be sure to give the agent hosting the open house your Realtor's contact information so the agent can follow up.

 

 

Once you've narrowed things down to a few properties, let your Realtor know and they'll schedule private showings for the home. This allows you to take a deeper look and assess things that photos and descriptions can't tell you. Your Realtor should also give you important feedback and insights about the home that you might not have noticed.

 

 

These are conditions that must be met before the sale is final. Common contingencies include home inspections, appraisal and final financing approval.

 

 

You'll also need to submit earnest money. This is your way of showing your commitment to the property. This money will then be applied towards your closing costs or down payment.

 

 

Once both parties agree to the terms of the contract, you'll enter into a fully executed purchase agreement. This is the contract that will outline all the details of the transaction including purchase price, earnest money, inspections, closing date, contingencies, seller concessions and more.

 

 

Once you have an executed contract your Realtor will open escrow. You'll have three business days (unless otherwise noted) to get your Earnest Money into escrow. Escrow is the neutral third party that faciliates all aspects of the closing. They handle all the money including the preparation and signing of the deed and the loan documents. 

 

 

Once you have completed inspections it is time to make a request for repairs from the seller. Your Realtor will guide you in what repairs you may or may not want to ask for but ulitmately that is up to you. No one else can tell you what is most important to you. In general you'll want to focus on health and safety items or major systems. It's also frowned upon to ask for items that you knew about when making your offer. Remember, once again this is a negotiation. The seller can accept, reject or counter your request. 

 

 

Your lender will order an appraisal to ensure the home's value matches the loan amount. If the appraisal comes in low you may need to renegotiate with the seller or come up with additional funds in order to close. 

 

 

This document outlines your loan terms, closing costs and monthly payments. Make sure everything looks correct before moving forward. 

 

 

A day or two before the closing date you will have an appointment either at the escrow company or with a mobile notary at your home. You'll sign all of your mortgage documents at this time. You will also bring in the money for your down payment and closing costs either in a cashier's check or via a wire transfer.