The Home Buying Process in 10 Simple Steps

If you’re thinking about buying a house but the whole home buying process intimidates you, the best thing to do is take a deep breath, take your time, and focus on the process.With proper attention and focus, you’ll be closer to landing in the home of your dreams.

The National Association of Realtors Recommends the Following Steps for the Home Buying Process

1. Ask yourself if you can you afford it. Do you have enough cash for a down payment (typically at least five percent of the purchase price)? You’ll also need cash for closing costs (the final costs associated with closing the loan). The lower the down payment, the higher the monthly mortgage payments – an incentive for home buyers to buy with some cash up front.

2. Get your credit squared away. For at least one year prior to purchasing a home, you should assure that every credit card bill, rent check, car payment and other debt is paid in full and on time. Don’t make any major purchases.

3. Get a real estate agent. The agent will provide you with current market conditions, financing options, negotiating issues, and will help in every step of the home buying process. Because market conditions can change and the strategies that apply in one negotiation may be inappropriate in another, you’ll need to be flexible. Think about hiring a rebate realtor who will rebate you up to 2% cash back like Glass House Real Estate.  

4. Get pre-approved for a loan. By meeting with lenders, you will find which programs best meet your needs and how much you can afford. "Pre-approval" means you have met with a loan officer, your credit files have been reviewed and the loan officer believes you can readily qualify for a given loan amount with one or more specific mortgage programs.

5. Look at homes. Check out different neighborhoods and research schools. Do you want a newer home or an older one in a more established neighborhood? How big of a house do you want? One story or two? Is the back yard important? Start looking at homes and answer these questions so your agent can help in your search.

6. After you have looked around and have received input from your agent, choose a home you’d like to make an offer on.

7. Make an offer. In a typical situation, you will complete an offer that the Realtor or agent will present to the owner and the owner's representative. The owner, in turn, may accept the offer, reject it, or make a counteroffer.

8. Get insurance. Title insurance is purchased with a one-time fee at closing. Title insurance protects owners in the event that title to the property is found to be invalid. Coverage includes "lenders" policies, which protect buyers up to the mortgage value of the property, and "owners" coverage, which protects owners up to the purchase price. In other words, "owners" coverage protects both the mortgage amount and the value of the down payment. You’ll also need homeowners insurance for fire, theft, and liability coverage.

9. The closing process, also known as "settlement" or "escrow," is increasingly computerized and automated. In most cases, paperwork is sent overnight and signed quickly. In practice, closings bring together a variety of parties who are part of the "transaction" process. For example, while the history of property ownership has been checked, it's possible that the records contain errors, unrecorded claims or flaws in the review itself; thus, title insurance is necessary. At closing, transfer taxes must be paid and other claims must also be settled (including closing costs, legal fees and adjustments).

10. Move in, relax, and enjoy.

I hope these 10 simple steps help as you enter the home buying process. If you are currently looking to buy a house and would like to find out how you can earn a cash back rebate, click the link below to get in touch with an agent today!