Home Buying Process, Step 2
This video goes over all the questions a new home buyer must ask themselves in order to start the home buying process. Getting pre-approved, dreaming up your dream home, making an offer, and opening title and escrow are the first steps you must take!
The Home Buying Process Part Two - Successfully Attaining Your Dream Home
The most common questions an excited home buyer asks are what's the first step in the home buying process? And how do I find the home of my dreams? Here are the four steps to successfully attaining your dream home - Get preapproved, dream up your dream home, Make an offer, open title and Escrow.
The first step in the home buying process is getting preapproved. To get preapproved, your loan officer will make a thorough investigation into your income, credit history and credit score and assets and liabilities. The preapproval will help you determine how much financing you are qualified for.
Once preapproved, it's time to imagine and find your dream home. Consider options like environment - is it in a lively downtown area or is it in the sunny suburbs?
- Size - how many bedrooms does it have?
- Amenities - is there a pool in your future?
- Location - What kind of commute do you want?
Did you find the perfect home? Then it's time to make an offer.
The official offer is a written purchase contract that includes the purchase price, down payment, loan amount, deposit, and terms and conditions. However, you want to do your homework before making an offer, analyze the market, is it a buyer's or seller's market? What have comparable homes sold for? How long has it been on the market? There are three potential outcomes when making an offer, the seller accepts the offer with no other requests, the seller rejects the offer and no deal can be made or the seller counteroffers. You can accept, reject, or make another counteroffer. This is where negotiating comes in. If, for whatever reason, maybe upon a home inspection needing repairs were found that the seller doesn't want to cover, or maybe you found a better home, you can withdraw your offer.
If you withdraw before the offer has been accepted, the usual process is to have your real estate agent draft something up. If you withdraw after the purchase contract has been signed, it gets a bit tricky. It’s wise to have an attorney take a look at the contract and help you navigate through this process.
Opening escrow involves going to the escrow title company and handing over a deposit, also known as the earnest money. The agent will need to give the escrow officer instructions about the transaction and explain what conditions need to be met before any money can change hands. Simultaneously, the title officer will be preparing to change ownership of the home. Investigating any leans against the property, as well as arranging the title insurance policy. The lender and the MC escrow officer will organize the disbursement of funds, the closing date, and the distribution of the money from the sale. Get Your Dream Home.