Home Buying Guide

Also see:
10 Deadly Sins of Buying
Buyer's Plan of Action
Tips to the Buyer

Choosing a REALTOR®

Of all the decisions you'll face when buying a home, there's none more important than the person you choose to represent you.

The job of your REALTOR® is to support you in finding the right home with the best possible terms and to aid you through the entire process. Your REALTOR® will explain the process of buying a home and familiarize you with the various activities, documents and procedures you will experience throughout the transaction.

Tips For Selecting A REALTOR®

Your REALTOR® should be:

Knowledgeable about the communities of interest to you
Aware of the complicated local and state requirements affecting your transaction
Effective in multi-party, face-to-face negotiations
Highly-trained with access to programs for continued learning and additional certifications.
Technology-focused
Supported by professional Brokers/Managers

Financing

REALTORS® and mortgage lenders recommend obtaining a pre-approval for a loan before selecting a home to purchase. This process will help you:

Determine the price range you can afford
Understand the types of loans available to you
Determine your monthly payment
Estimate the down payment and closing costs

The Loan Process

Your REALTOR® will help you to select a mortgage lender. Once you have made your decision, these are the steps of the process:

Application - All pertinent documentation is obtained. Fees and down payments are discussed and you will receive a Good Faith Estimate (GFE) and a Truth-in-Lending statement (TIL), itemizing the rates and associated costs for the loan.

You will be asked to provide certain documents to your lender before your loan can be processed in a timely manner.

Loan Submission - Once all the necessary documentation is in, your completed file is submitted to a lender for approval.

Loan Approval (Underwriting) - Loan approval, or underwriting time will vary depending on loan type and amount. All parties are notified of the approval and any loan conditions to satisfy before the loan can close.

Closing - Once all parties have signed the loan documents, they are returned to the lender. If all the forms have been properly executed, the lender sends the loan funds by wire transfer. At this point, the borrower finishes the loan process and actually buys the house.

Finding and Choosing the Right Home

Based on criteria you establish, your REALTOR® will help you find the perfect home. There are many factors to consider in selecting a property including location, bedroom and bath count, schools and amenities.

Your REALTOR® will apply their extensive community knowledge and professional resources to research available properties and show you the homes best meeting your needs. If you find a property through the Internet or your own research, let your REALTOR® know so a showing can be arranged.

As you view different properties your criteria may change. Open and direct communication with your REALTOR® is a key element of a successful property search. Your REALTOR© will discuss with you the Buyer's 10 Deadly Sins, the Realty America Plan of Action and the Realty America Tips for the Buyer.

Making an Offer

Once you have found the home you wish to purchase, your REALTOR® will apply their professional training and do all the necessary research to help you structure an effective offer.

This is where your REALTOR'S® negotiation skills come into play. When an offer is made the seller will have the option of accepting, rejecting or counter-offering. Your REALTOR® will assit in negotiating the best possible terms for you.

Your REALTOR® will draft the purchase agreement advising you of protective contingencies, customary practices and local regulations. Home warranty, title and escrow arrangements will be detailed in the offer. Although your Sales Associate will give you advice and information, it is your decision as to the exact price and terms that you wish to offer.

Managing the Escrow

When the purchase agreement is accepted and signed by all parties, your REALTOR® will open escrow for you and your earnest money will be deposited. The escrow is with a title company and they act as a neutral third party to receive, hold and distribute all funds associated with your transaction.

Removing Contingencies

Prior to closing escrow all the contingencies of the Purchase Agreement must be completed. Your REALTOR® will coordinate this process. Typical contingencies include:

Approval of the Seller's Real Property Disclosure Statement
Approval of the preliminary title report
Loan approval, including an appraisal of the property
Physical inspections of the property
Pest inspection and certification
Acquisition of homeowner's insurance

Closing Escrow and Moving In!

When all of the conditions of the purchase agreement have been met, you will sign your loan documents and closing papers. You will deposit the balance of your down payment and closing costs to escrow and your lender will deposit the balance of the purchase price. The deed will then be recorded at the County Recorder's office and you will take ownership of your home.

Your REALTOR® is a valuable source of helpful tips for planning and coordinating your move. See our Discover America Moving Tips in the Residential Buyer section of this website.