Understanding the Home Buying Process

September 28, 2017


The more you know about the best way to reach a goal, the more likely you are to get the result you want. So, whether you’re hunting for a new job, assembling a backyard BBQ, or training for a 3 mile run, you’ll want to use a proven process to help you get there.

That certainly holds true when shopping for a new home. There is a proven process to getting the home you want, in the area you want, at a price you can afford. Here are the highlights:

  1. Get ready
    There’s a lot you must do before you pack your energy snacks in the car and go looking at homes. If you own your current home, you must prepare that property for sale. You should also get financing for a new home pre-approved, so you know exactly how much you can afford.
  2. Go shopping
    Your next step is to view the right homes currently available on the market. It’s a good idea to make a wish list of the features you’re looking for in a new home. You may not be able to get everything you want, but you can probably come pretty close.
  3. Make an offer
    When you see a home you like, the first thing you’ll need to do is to make an offer. This can be tricky especially if there are other interested buyers.
  4. Get an inspection
    Always get the home checked out by a qualified home inspector. A property may have issues, such as a foundation leak, that are not obvious during a viewing.
  5. Apply for a Loan
    At this point in the process you will need to go and formally apply for a mortgage.  This will require meeting with a loan officer and providing with them with the necessary information and documentation they will need to generate the loan.
  6. Get an Appraisal
    This is generally done by the bank or mortgage lender and in most cases is required in order to receive a loan for the purchase.   The appraisal is a report that will establish and justify the homes value to make sure the bank isn’t lending out more money than the home is worth.
  7. Sign the Purchase and Sale Agreement
    The purchase and sale agreement is effectively the bill of sale for the property.   It is the legal agreement that outlines all the terms and conditions in which the property is to be sold and how the transfer of ownership will take place.
  8. Prepare for the move
    Once you’ve made the purchase, you need to arrange for moving and deal with other details, such as utilities, telephone, mail forwarding and so forth.