sellboji

What Is The Home Purchase Process?

 

For most people, finding the right home begins with a house-hunting strategy combining personal preferences, guidance from others (such as myself) and a mix of neighborhood exploring and online search.

For some, the search takes a while; others find what they want right away. In either case, your agent will be a resource of insight and guidance, working through issues or complications that arise along the way.

Here’s a general outline of what to expect during a home purchase, from the buyer's perspective.

Buyers make a purchase offer.
This is it! You've found the home of your dreams, looked over disclosure documents, reviewed comparable sales data, talked it over with your agent and submitted an offer. The sellers may accept your first offer, but more often will return a counteroffer. In fact, additional negotiations are common, and I will help you through this generally stressful stage.

 

The sellers accept.

Once everyone is happy with the terms, the parties have reached what is known as mutual acceptance and enter into a purchase and sale agreement.

Buyers put up earnest money.
To solidify your intent to buy, you'll place a deposit, or earnest money, on the property. The amount varies, but is generally at least 1 percent of the purchase price. You'll write the check to the escrow company, not the seller. Note: This money counts toward your down payment later.

Escrow opens.
The earnest money deposit goes into an escrow account, where all funds will be held until closing, when they are then distributed to the right people (lender, mortgage broker, title insurer, real estate agents, etc.).

Buyers apply for a mortgage.
This step is streamlined if you've already been preapproved for a loan (which is a smart thing to do). If not, you'll begin the loan application process now.

The lender inspects title history and orders a property appraisal.
The lender needs key information about the property before granting a loan. This is when potential problems can come to light. For example, the appraisal could show a lower value than the purchase price, or the lender could have trouble finding comparable homes. Also, the title search could turn up liens or other problems.

A home inspection takes place.
You'll hire an inspector – generally, your agent can suggest some and will offer you a list of different inspectors – to check the home and point out minor and major problems that should be fixed before closing. At this point, you still have the option of backing out of the deal. You need to be careful here, because if you request the seller to perform work, or ask for money, then you have legally created a counteroffer, and the seller may have the option of backing out and taking a better offer it one has come in.

Removing contingencies.
If the house passes inspection, appraisal and title search, and everything is good to go, then all contingencies can be removed, paving the way to a closing.

Closing time arrives.
Once contingencies are removed and financing is set, all parties sign documents, and the transaction closes.

Packing begins!
When the final signatures are in place, it’s time to put down the pens, shake hands, and deliver the keys!

Get In Touch

Local Expert Updates

Charlie Leissler Residential Sales (Real Estate Agent)

Charlie Leissler

Residential Sales

712.229.9809

712.336.4967

Janie Eick Real Estate Professional (Real Estate Agent)

Janie Eick

Real Estate Professional

712.339.0574

712.336.4967

Greg Sheeler Real Estate Professional (Real Estate Agent)

Greg Sheeler

Real Estate Professional

712.330.1573

712.336.4967

Matt Lippon Broker Associate (Real Estate Agent)

Matt Lippon

Broker Associate

712.330.0604

712.336.4967

Community Updates

Greg Sheeler Real Estate Professional (Real Estate Agent)

Greg Sheeler

Real Estate Professional

 712.330.1573

 greg@okobojipropertygroup.com

The Bear

Spencer

The Bear is an eclectic little coffeehouse and wine bar nestled in Spencer. The bear serves amazing breakfast, lunch and dinner year round, as well as beer, wine, and of course, the finest coffee. It

More Info
Amber Oberman  (Real Estate Agent)

Amber Oberman

 773.308.5177

 amber@sellboji.com

Be Radiant

Spirit Lake

Cathy Thee, the owner/operator of Be Radiant, does a great job of assessing what your skin needs and the results you are looking for to create a treatment plan customized just for you. She is very

More Info
Janie Eick Real Estate Professional (Real Estate Agent)

Janie Eick

Real Estate Professional

 712.339.0574

 janie@sellboji.com

Katy Lynn Boutique

Arnolds Park

Katy Lynn Boutique is a fabulous women's clothing store offering a wide variety of clothing, shoes, jewelry and more. Excellent customer service with all hands-on-deck in helping you find that

More Info

Subscribe To Our Newsletter

The newsletter is sent periodically and will updated you on the latest real estate news and offers.

Your browser is out-of-date!

Update your browser to view this website correctly.

Update my browser now

×