NEW HOME BUYERS 101 Pre-Search Phase Step 1: Research your target location Learn as much as you can about taxes, school districts, demand, desirability and average price of homes sold in the general area you hope to move to. - 1 to 7 Days From START Step 2: Decide on your location Wants & Needs Make a list of the things most important to you such as proximity to schools and shopping, rural setting, tax rates, etc. Decide which items are "wants" and which are "needs". - 1 to 7 Days From START Step 3: Narrow your location to between 3 and 6 specific areas If you don't narrow your search, you'll get frustrated, confused and overwhelmed. Choose 3 areas you would be happy to live in and 3 "second" choices in case you don't find what you're looking for. - 5 to 10 Days From START Step 4: Decide on your House Wants & Needs Make a list of the things most important to you such as number of bedrooms and bathrooms, size of lot, color of the house, etc. Decide which items are "wants" and which are "needs". - 5 to 14 Days From START Step 5: Get Pre-Approved for your mortgage Getting Pre-Approved tells you exactly how much you can afford, what the closing costs will be, makes your offer look better than others, and gives you a chance to lock in a rate without being obligated to anything. In many "hot" markets, sellers and Seller's Agents may not let you tour a home unless you are Pre-Approved! Get pre-approved here - 1 to 14 Days From START   Search Phase Step 6: Browse Listings of homes for sale - House Hunting You can browse listings online, in newspapers and real estate magazines, or by driving around finding "For Sale" signs. Remember, the names in the advertisements are almost always the agents that work FOR THE SELLER and are legally obligated to answer your questions as such. - 7 to 17 Days From START Step 7: Make an appt. WITH YOUR AGENT to tour the homes you like Do not let the Seller's Agent control the showing. Your Buyer's Agent will know what to look for, how to spot tricks-of-the-trade, and which questions to ask. Tour the home focusing on structure, not aesthetics. Paint and wallpaper can be changed. A weak foundation or leaky roof may be deal-breakers. - 10 to 21 Days From START Step 8: Make a realistic offer on the home you want Your Buyer's Agent will assemble a CMA to help you gage an appropriate offer price and help you to understand the contract terms and legal jargon. Too low of an offer may not be taken seriously and won't receive a counter-offer. Too high of an offer is exactly what you don't want. This is the trickiest step in the process that your Buyer's Agent will consult you through. - 14 to 30 Days From START   Offer Period Step 9: Negotiate your offer Your Buyer's Agent will present and negotiate the offer to the sellers and their Seller's Agent. This includes dickering, positioning, and even "selling" the terms of your offer to the sellers - all while working in your best interests. - 17 to 33 Days From START Step 10: Your offer is accepted When the negotiating is done and everyone agrees, the final offer is accepted and signed by everyone. Once signed, it legally becomes the Purchase Contract. - 1 to 3 Days From OFFER   Post-Offer / Pre-Closing Phase Step 11: Your Attorney reviews and approves the Purchase Contract You can browse listings online, in newspapers and real estate magazines, or by driving around finding "For Sale" signs. Remember, the names in the advertisements are almost always the agents that work FOR THE SELLER and are legally obligated to answer your questions as such. Step 12: Formally apply for your mortgage The application process will be simpler since you are already Pre-Approved. In this step is where your mortgage broker has you fill out the entire application and then send it to underwriting to be approved. Step 13: Have the house appraised and inspected The appraisal and pest inspection are required by your mortgage bank. You'll want to get a structural inspection to protect yourself. If your new home has well and septic systems, you'll want those inspected too. Step 14: Obtain Homeowners Insurance As usual, you will need an annual policy paid in advance. Your mortgage bank will need a copy of the receipt and binder. Step 15: Get approved for your mortgage Waiting for the bank to finish underwriting your loan is usually the second longest step in the process. More often than not, the bank will need more information from you such as past bank statements or written explanations of anomalies. Get the bank whatever it needs as quickly as possible! Step 16: The Title Company will assemble an Abstract of Title This step of the process will be started by your Attorney or your Buyer's Agent. The Title Company checks through decades of public records to make sure that the people selling you the home actually own it. It may sound silly, but the bank requires it and it protects you from someone showing up on your new doorstep someday claiming they actually own the property. This step takes the most time of any step in the process. Step 17: Schedule the Closing and do the final walk-through Once you have the bank's Commitment Letter and the Attorney's Abstract of Title you can schedule the Closing (a.k.a. Settlement.) A few days prior to Closing, you and your Buyer's Agent will walk through the house one last time to make sure everything is in order. Step 18: The Closing You, your Buyer's Agent, your Attorney, the sellers, the Seller's Agent, the sellers' Attorney, the bank's Attorneys, and the Title Company's Attorney all sit down at the table and sign off on tons of paperwork. You finally get the keys to your new home and walk away with enough fine print to keep you busy for a year. Step 19: Move In Yes, you can move in the same afternoon as the Closing. The house is yours to do with as you please. And no, your Buyer's Agent probably won't help you move furniture. The home buying process is over, and the Moving Process begins.