Special Guide: The Home Buying Process
This guide covers some of the important steps you'll need to take throughout the home-buying process. These should serve as reminders for what you need to think about before purchasing a home. Make sure you understand these important steps and if you need any help, don't hesitate to reach out to Angie Cole at 919-578-3128, or click here.
And if you ever miss an episode of the Savvy Realtor radio show, check out the podcast for a condensed version of the program to keep up to date on market changes and the best tips & tricks to know when buying and selling real estate in the Triangle.
Want to download the guide? Click here.
THE HOME-BUYING PROCESS
Obtain Financial Pre-Approval/Get Pre-Qualified
Analyze your needs in a buyer’s consultation with your agent.
Your agent will send you a list of homes that meet your criteria and then schedule appointments to view.
You are ready to make an offer! Your agent will pull comparable homes to provide you with the most up to date information and help you determine the best price to offer.
Your agent will work to negotiate the best terms possible for you.
Congratulations! Your offer has been accepted. A few things you need to know about your contract:
Due Diligence Period: This is the time in which your inspections will be ordered, repairs negotiated (if any), appraisal ordered, and you do whatever needed in order to proceed to closing.
Due Diligence Fee: The purpose of the due diligence fee is to compensate the Seller for taking their home off the market while you perform your inspections and appraisal. This fee is due once the contract has been signed by both parties. This money is non-refundable. The Seller will cash the check or money order immediately. At closing the due diligence fee will be credited to you on your closing statement.
Earnest Money or Additional Earnest Money: Earnest Money is given to secure the property after due diligence has ended. The earnest money’s due date depends on what is written in the contract. Typically the earnest money is due once the contract has been signed by both parties. If your agent selects Additional Earnest Money, then those funds will be due on the date written in the contract. This money is at risk if you decide to walk away from the contract after the due diligence period ends. When you close on the home, the monies will be refunded to you on the closing statement.
Appraisal: Your Lender will order the appraisal on the home you have selected. You will have the option to negotiate the purchase price if the home does not appraise for at least the purchase price on the contract.
Repair negotiations: The contract states that the property is to be sold “as is.” However, in some instances, once you have had your inspections completed, you can request that the seller pay additional expenses for repairs. Negotiations will be handled by your agent. All repair negotiations must be completed before the end of your due diligence period.
Settlement Statement: A HUD-1/ALTA (Settlement Statement) is typically provided 12-24hrs before closing. This will break down the amount of monies needed for closing or credit you will receive. Your lender should also be able to provide you with a GFE (Good Faith Estimate) which will give you a rough estimate well in advance of closing.
Final Walk Thru: This is completed the evening before or morning of closing. This is a time to check repairs to be completed and make sure the home is in the same state as previously viewed.
Closing: This is held at the Closing Attorney’s office. Be sure to bring your license and needed funds. Your agent will confirm amount. Don’t forget to set up your utilities!
Celebrate! Congratulations because you've purchased a new home.