Buying a house might seem complicated at first. Between down payments, mortgage rates, property taxes, interest rates, and closing the deal, it’s easy to feel overwhelmed. If you’re a first time home buyer or it’s just been a few (or 20!) years since you’ve been through the home buying process, here’s a basic home buying guide for you to reference.
First and foremost, call The Ville Team! From finding the perfect home to negotiating the deal and everything in between, as your real estate agents we’ll navigate and take care of you through the entire process! It’s still best to familiarize yourself with all of the steps so you know what all needs to happen before you move into your new home.
1. Needs & Wants
As the home buyer, we will work together with you to establish and define your needs and wants, including neighborhood, school district, amenities, and more.
2. Figure out Finances & Get Pre-Approved
A mortgage lender will scrutinize your financial background-such as your debt-to-income ratio and assets-and use this info to determine whether to loan you money, and what size monthly payment you can realistically afford. You will have to provide quite a bit of paperwork, but it’s worth the trouble since it guarantees you’re creditworthy and can truly buy a home.
At the same time, you will need to think about your down payment. Ideally, a down payment on a mortgage should be 20% of the home’s price to avoid added fees, but if you don’t have that much of a down payment, don’t worry. A mortgage down payment can be as low as 10%, 5%, or even 0% for certain types of mortgages (e.g., VA loans or a USDA loan).
3. Home Search
This is the fun part! Using the MLS, market research and networking, we will send you home listings tailored to your needs and then set up appointments to see your favorites in person.
4. Make An Offer
Found your dream home? Then it’s time to make an offer to the seller. Your Ville Team agent will put in the paperwork to the listing agent to make an offer and negotiate on your behalf.
5. Review Process
Negotiations continue between agents and lawyers until both parties accept and the offer and terms are finalized. After a contract is agreed upon by both parties and Earnest Money – an initial deposit showing intent to purchase – is received by the listing brokerage, the standard contingency process / Attorney Review begins. The home will then undergo an inspection and appraisal to ensure the home is safe and a good investment.
Once those steps have been completed and issues have been reconciled, the process of obtaining the mortgage financing will continue. This is the portion that takes the longest. After the flurry of activity in the process up until now, it may feel like nothing is happening. But, in fact, your real estate team is working hard behind the scenes to finalize the purchase. You will also need to secure homeowner’s insurance during this period while the attorney works to obtain your title insurance. The lender will send a “clear to close” notifying both parties that the funds are ready to be distributed and you’re officially able to close on the home.
6. Walk-Through
Usually the day before or the morning of the closing, you will have a final walk-through to confirm the condition of the house. Alongside your Ville Team agent, you will have a final look at the home and confirm repairs that were agreed upon during inspection.
7. Closing
Closing day brings together a variety of parties who are part of the real estate transaction, including the buyer, seller, title representative, real estate lawyer, and others. The down payment and closing costs – extra fees you pay to process your loan – will also be due at this time.
After signing (more than) just a few documents, you officially get the keys to your new home!
