Buying a home can be a confusing and tiresome process. It’s important to know what to expect in the upcoming weeks. We have listed a step-by-step guide on how the process works below. Our hope is for you to gain a little more knowledge with each step you read. It is important to note that every home buying process is different.
The Purchase Process

Getting preapproved is the first step to finding your home if you are going to take out a mortgage on your property (if paying cash, move to the next step). This is an important step because it determines what your price range is when finding your home. This pre-approval is given by a mortgage broker. Your mortgage broker will review your credit score, income vs debt, and figure out how much your are preapproved for. It is then helpful to go over payment so you determine what your price range is.
2. Choosing the right Agent
It is important to chose someone you trust when finding your home. Finding a realtor who is both responsive and also discloses everything in a timely manner is important. The realtors at Dreams & Keys specialize in both knowledge and punctuality.

View Agents

Is it in your price range? Does it have all the criteria you’re looking for? What are the taxes? Are there other offers? Are we in a buyer’s market or a Seller’s Market? Does the property have good Value? Finding a property can be hard and draining! One thing to note–it is important to move fast when looking for properties you’re interested in. The properties that are excellent do not stay on the market long. This is why we will provide you with your own MLS (multiple listing service) search.
4. Negotiating a Purchase (This is where we put in your initial offer)
There are a lot of factors that go into negotiating the Contract. Ex. Location, Time property has been on the market, other offers, how much work the property needs, and what other similar properties are selling for in the area. We will go over each and everyone of these points and assess how it affects the offer we should submit. By doing this we have a better chance of getting the property negotiated to a reasonable price that we will feel comfortable with.

Choosing the right lawyer is important. A lawyer that focuses in Real estate and has a team around them is very important. It is their job to review and amend contracts. If the contract has verbiage that are not in the client’s best interest. They also keep us on track to meet all of our contingency dates (ex. Inspection and mortgage). Once we go to closing it is their job to review all the closing documents. On a purchase of a home once the closing is over everything is final. It is nice to have an attorney that has experience in real estate to help you feel secure.

The inspection comes after a contract is signed by both parties. This step is completed within 5 business days from the date the contract was signed. A buyer should choose a professional licensed inspector who has several years of experience and is familiar with the town’s codes and regulations. The inspection covers all key components of the house.

A Pre-approval is not a Loan Approval. In order to get a loan approval the lender not only has to assess the client, but also the property. The loan approval will require the lender to fully evaluate the Client’s income, assets, and credit. In order to do this they will review all of the client’s income documents and confirm them with the IRS and the employer. The lender will also review the bank statements to see that there aren’t any deposits over 50% of the borrower’s income or 1% of the purchase price whichever is less. If credit reports are old they will re-pull new credit reports to make sure they are all up to date.
Once the Lender is done assessing the client they will also want to assess the property. They will want to see an appraisal and clean title. The appraisal will help evaluate the value and condition of the property. They will want to see that the home you are buying is atleast worth what the contract price is. The lender will also want the property to be in adequate condition to lend on. The property cannot be falling down as an example
After all of these items are reviewed the loan will be cleared to close. Most likely the 3 most loved words in the home buying process….CLEAR TO CLOSE!

The Lender will then issue your final closing disclosure. By law you have to receive this 3 days before your closing. This will be the closest estimate to what all the final numbers will be. Once this is acknowledged the attorneys will then set up a closing time. Remember this is still an estimate.

The final walkthrough will take place a day or two prior to the closing. The purpose of this walkthrough is to ensure that the property is in the same condition it was in when you originally walked through. It is also the time to ensure all repairs that were agreed upon were completed.

You’re almost there! Before the closing your attorney should already have the amount of money needed for closing. If it is below 30,000 you may take a cashier’s check made out to the title company. If it is over 30,000 you will need to send a wire. Because of wire fraud you will be instructed to call the title company and confirm the wiring instructions are correct. You are to look up the title company’s phone number from a third party service. Call that number and verity the wiring instructions.
At the closing your attorney will go over the transfer of ownership, settlement statements, and mortgage documents. If all the documents are as agreed upon you will begin signing your life away. Once you are done the lender will review the signatures and give funding authorization. Once the closing has been funded you are free to enjoy your new home!

******note, every situation is unique and we take great responsibility in the care of every client and their circumstance. This is just an estimate on how your process will be but is always subject to change.*****