Steps in a Real Estate Contract
The Following is a list of steps a typical buyer would take when purchasing a home. We want to provide this to our first time home buyers inparticular to make the entire process more enjoyable and easy.
Knowledge is power and just having the path to take to home ownership down, can make a world of difference on your stress level through the process.
Steps in a typical real estate transaction for a buyer:
- Get pre-approved for a loan
Get in touch with a lender; this could be a bank, mortgage broker, credit union or similar work out a budget for your home. You will need to divulge any income and liabilities so the lender can determine from your debt to income ratio how much you can reasonably afford to pay for a home. The lender will then give you a letter of pre-approval to present to sellers when submitting an offer to prove you are a serious buyer. Our Taylor County real estate connection has an excellent home ownership quiz, and our Coldwell Banker Abilene real estate affiliate has more on how to get a mortgage.
With a price range in mind, it doesn't mean you have to max out that amount on a home. This is a maximum amount you should spend on a home and anything lower than that will only make your finances easier. You can start looking right here for Abilene real estate and contact an agent for private showings or to let us do the searching for you.
This is not necessarily the same agent that is listing the house you like. That agent is called the listing agent. Their main focus is on selling the house, not always in your best interest. Having a buyer's agent specifically focused on you and finding you the right house is always a better choice. You know that agent will get paid from whichever home you choose but more importantly, they are working solely for you and not any seller. They will keep your best interest at heart. Learn more about buyers benefits from our Abilene real estate contact.
Once you have found a home you like, your buyer's agent will write up all the necessary paperwork needed to submit a strong offer. You will need to tell them how much you want to put down, how much earnest money up front you are willing to offer the seller and when you would like to close on the home. Our agents know exactly how to write up a strong offer and will put together one for you and explain any issues or details you need. (Our Abilene real estate affiliate has more information on how to buy.)
This is sometimes the most anxious part as you don't know what the seller is going to say. If they accept your offer, then it is usually off to inspection time. If they don't, they will probably counter-offer with something else. If you agree, then once signed, and the contract is mutually accepted then the earnest money can be deposited and onto inspection. If no agreement can be made, the transaction is terminated and money is returned to you. (Our Abilene real estate connection can help buying made easy.)
You will want to hire a professional inspector for this because this is probably one of the biggest investments you are going to make and you want to be sure what you are getting. (our Abilene real estate contact has more on home inspections) Once the home is yours there is very little a buyer can do after the fact. This inspector will tell you all about your home and any repairs needed immediately and any needed in the future. Once you have had the inspection you can either request repairs to be made, money for repairs, money off the home cost, terminate the deal, or go forward with no repairs. Don't make these Buyers Mistakes from our source in Seattle.
After all contingencies are resolved, you will need to obtain home owners insurance. Get several quotes and bids and make sure they know what and where you are moving to. This is also a time where the sellers are moving out, lenders are finalizing loan documents, escrow is compiling papers and monies, and agents are keeping the peace between all parties. IT maybe a quiet time for you but also a good time to let everyone do their jobs and you concentrate on your new home. Our Abilene real estate affiliate has more info on insurance.
Once all the documents and paperwork are at escrow, you will go in separately from the sellers and sign all the paperwork necessary to complete the transaction. After the signing (which can take a couple hours), there is approximately 24-72 hours before the "closing" happens. This is where all monies are distributed and the deed is recorded with the county. On a typical purchase contract you can negotiate to move in upon closing or three days later if the sellers needed time to move out. Once that is satisfied, the keys are yours to your new home!!