The Home Buying Process: From Planning to Closing

Buying a house is not without its challenges. For many of us, it takes years of saving up, budgeting, research, and planning before we can seriously entertain the thought of buying a house. 

Here’s our walkthrough on the crucial steps of the home buying process to help first-time buyers navigate the real estate market and emerge victorious.

1. Get Pre-Approved for Mortgage

A mortgage pre-approval helps solidify your budget needs. It can also help hasten the buying process once you’ve chosen a house to buy. A pre-approval letter shows firm intent to buy and the ability to receive financing, giving you an edge over other potential buyers.

Make sure to shop around for a mortgage lender before getting preapproved, though. It is also equally important to weigh the different types of mortgages available.

2. Get a Real Estate Agent

Partnering with the right real estate agent or realtor can make or break the entire home buying process. Make sure to find a reputable agent or broker. Look for a real estate agent who is knowledgeable about the local housing market, willing to negotiate for you, and offers insight throughout the process.

4. Shop For and Attend House Viewings

Once you’ve got an agent, start taking the search for a house seriously. Ask for recommendations, provide concrete feedback and guidance, and work together with your agent to find a house that fits your needs and budget.

If possible, schedule visits for all your prospective houses. Moreover, take your time and be sure to make each home viewing count. Take photos, list down potential issues, and ask questions during the viewing. It’s also best to request another viewing after bad weather hits to check for any damages or repairs.

5. Make an Offer

When you’ve decided on a house, contact your agent to help you make an offer. Ask them for comparable sales information and any other data that may help in making a good offer within your budget.

In case the seller rejects your offer, be sure to consult your agent before making a counteroffer or giving up altogether. They may be able to negotiate on your behalf.

6. Complete Mortgage Application

If your offer is accepted, complete your mortgage application process. This requires an extensive amount of paperwork and documents, including recent bank statements and income tax returns.

Mortgage lenders often dig deep into your finances, especially during the underwriting stage. Some lenders may also require homeowners insurance before signing off on your mortgage.

7. Schedule Home Inspection and Appraisal

Home inspections are for your benefit but a home appraisal is necessary for mortgage lenders. Basic or standard home inspections help identify areas that need repairs. Should you uncover undisclosed house problems, you can use these to renegotiate with the seller.

The home appraisal focuses on the overall value of the property. This is to ensure the house is actually worth the amount of the loan.

8. Close the Sale and Receive the Keys

After the home inspection and appraisal are done, all that’s left is to finalize the sale. If there are any undisclosed issues discovered during the inspection, this can serve as leverage for further negotiations with the seller.

Barring that, you can start working on the closing documents. Be sure to get the closing disclosure from your lender to double-check for any changes between the loan estimate and closing costs.

On or before closing day, do a final walkthrough of the property with your real estate agent. Once you’ve ensured everything is in order, you can get the keys from the seller and enjoy your new home.

Navigating the housing market is no simple feat. We hope this walkthrough helps prepare you for the difficulties you’ll encounter through the home buying process.