How to Buy a Home: Step by Step

Congratulations on your decision to buy a home! Not only is coming home to your “own place” a feeling of comfort, real estate purchases have proven to be strong investments over time plus allows you additional tax savings.

Whether this is your first home or your fifteenth, this checklist will serve as an educational tool or a refresher to help you stay on course and be aware of what the next steps are in your purchasing process.

(√ when done)

1. _____Pre Qualification- Be sure to go to a qualified banker or mortgage person BEFORE you start your home search. These professionals will guide you through the process and will give an amount that you are approved to spend for housing. This person will also give you a letter stating that you have gone through this process and are financially capable of purchasing a home. This letter is crucial as it is submitted with all offers and gives “peace of mind” to the seller that you are able to buy their home. This process also allows you to invest your time in looking at homes that you know you can afford and will be able to purchase.

2. _____Home Features- Now is the time to think about where you want to live, why, what amenities you need and which ones would “just be nice.” Think about school districts, commute times to work, places that you like to be near. Also think about the size rooms you need, how much of a yard and other features that will make your house your home!

3. _____Buyer’s Agent- Be sure to contact a Realtor to be your Buyer’s Agent. Agents today can now represent the buyer so you know that your interests are being protected- all at no cost to you! I have undergone additional training and am an Accredited Buyer Representative. Please refer to the “Be a BUBA” brochure enclosed.

4. _____Lawyer- While getting a Buyer’s Agent, be sure to select a lawyer that you would like to represent you for contract issues and at the closing. Lawyers vary in price but are worth their weight in gold if any issues arise. If you do not have anyone of preference, I can refer you to people that have proven track records of satisfied clients.

5. _____House Hunting- Now is the time to go shopping. Your buyer’s agent will be alerting you to homes that meet your needs… but don’t stop there. Be sure to communicate with the agent if you see something you like. Go to Open Houses, look at the internet. Together, the agent and you are a team. The more people working on the goal, the quicker the result.

6. _____Offer Time- Once you see the home you want, your buyer’s agent will work with you to help you with pricing options. A comparable market analysis will be done which compares other similar sold homes in the area to the one you want. Is the home too pricey or is it already at market value? You must know before submitting an offer. Once an offer is submitted- it can be accepted, rejected or countered. The goal is an accepted offer from the start. Don’t be discouraged, however, if it is countered. That simply means the seller is interested in selling you the home, however, there are some terms in the contract that they do not find acceptable. It could be price, it could be closing date, or another item of concern. The listing agent will inform the buyers agent, who in turn, informs you of what needs to be changed. On most occasions, the item is negotiated and an “accepted executable contract” results. If the offer is rejected- then it’s over. The seller may have had many offers and yours was simply not the most attractive. A new contract can be resubmitted ,however, if the seller has not accepted another offer.

7. _____Attorney Approval Clause- Once the offer is accepted, the seller signs the offer and it becomes official. The contract is then sent to your attorney for approval. There is an attorney approval date on the contract in which the attorney must approve or disapprove the contract by this date. This is typically 3 business days after acceptance. As a buyer, this time frame is the only time in which you can change your mind and get out of the deal without being in breach of contract. ( Structural and mortgage problems aside) As a seller, they can still accept other offers and bump your deal out. Its not ethical but it does and can happen.

8. _____Apply for the Mortgage- Now is the time to go to the bank and get started on the actual mortgage process. Your mortgage person needs a copy of the contract and will provide you a list of needed documents to secure the loan.

9. _____Home Inspection- All homes- new or previously owned should be inspected by a NYSlicensed home inspector. They will go through the home from roof to basement and prepare a detailed report on the findings. Other inspections include pest, radon, and septic, well ( if applicable) . One person typically does the structural, pest and radon tests whereas other professionals perform the septic and well tests. This is the best money you will spend as this is a protection to one of your biggest investments- your home. If a fault is found in your home that costs more than $1500.00 to repair, you as a buyer, can get out of the contract. This must be one situation, not an accumulation of multiple items adding to $1500.00. If this happens, the lawyers get involved and work it out to your satisfaction. Again, this is a chance to walk away without risk if the situation is not remedied to your satisfaction.

10. _____Mortgage Commitment- The mortgage commitment from the bank needs to arrive on or before the date provided on the contract. This is typically 3-4 weeks after the offer. Once this happens, the attorneys on both the sellers and buyers side are notified. If this date is not able to be met, the buyer’s lawyer asks for a time extension which is generally acceptable to the other side. This mortgage may have contingencies on it requiring additional proof of assets, income etc.

11. _____Clear to Close, Walk Through  and Closing Day- Once the mortgage is approved and all contingencies are met, “clear to close” has been reached an a closing day is set.  Prior to closing, you will have the oopportunity to walk through the property to be sure that the home is in the same condition as last you saw it. ( EX: no floods, fires, vandalism)This is also the time to double check that items that are to be left in the home are, in fact there and items that are to be gone, are, in fact, removed. Closing is typically  located at the office of the bank attorney. Be sure to bring proof of identity ( drivers license) for all parties on the deed.

** Rely on me to help you through this entire process and be there every step of the way!