The Home Buying Process
Looking to purchase a home or just starting your research? Either way, I’m happy to help! Let’s go over what the process of purchasing looks like, start to finish.
Step 1 – Let’s meet in person or on Zoom to go over the process!
I offer a no obligation buyers consultation to go over the process from start to finish. This will help answer all of the questions you have as well as prepare you for purchasing your dream home!
Schedule here!
Pre Approval
You will fill out an application with your lender to see how much home you can afford. They will pull your credit, review income and verify your assets. A lender will also tell you what loan type is best for you and how much you can expect to bring to closing. I recommend getting a couple quotes to find the best deal and the best lender for you.
Need a local lender or credit repair specialist? I have a few great ones, I uses and can recommend!
Start receiving houses to your email
Once your lender has given you your max pre approval amount, we will have a clearer picture of what your budget looks like. Based on your preferences, I will set you up on an automatic house search that goes directly to your email. You will also have access to the MLS via my app to view properties freely. For Virginia, I recommend my Homes.com app over apps such as Zillow, because it has the most up to date information!
Tour homes
Once you see a home you like, I will coordinate with the listing agent for us to see the home. Typically, we can see a home within 1-24 hours of notice to the seller.
Make an offer
Now that you’ve found and toured your dream home, it’s time to craft an offer to win! There are many different strategies we can use when submitting an offer. Every home is different and offers will vary based on details such as comparable sales, if there are competing offers, days on the market and factors that are important to the seller.
Negotiate the offer
A seller can either accept, counter or reject an offer. If they accept, great! We are under contract!
If the seller rejects, they have decided they do not want to move forward with your offer and have most likely gone with another one.
If the seller counters the offer, they have sent your offer back with revisions. You can accept, counter or withdrawal your offer.
Your under contract!
Yay! Your offer was accepted, now what? Every state is different but in Virginia, you have two business days to submit your EMD (Earnest Money Deposit). The EMD shows the seller that you, in good faith plan to move forward with the purchase of their home. The amount ranges $500+. I typically recommend at least $1,000, this amount is determined by you, with Realtor’s guidance when submitting the offer.
Work with lender to sign loan disclosures and lock rate
You will work with your lender to lock in your rate, sign and or provide any additional documents.
Select a closing attorney or title company
In the state of Virginia, buyers and seller close with a title company or an attorney. The closing company is responsible for coordinating with the lender, the selling side and the real estate agents to ensure the transaction is executed in accordance with the contract. The buyer’s closing agency disburses the funds to the seller per the contract and records the Deed with the city. They will also assist in issuing buyer title insurance if you choose to obtain (recommended).
Home inspection/ contingency periods
A home inspection is optional, however, I ALWAYS recommend it. A licensed home inspector is able to check the major systems such as HVAC, electrical, plumbing, roof, attic and crawl space to gauge the overall condition of the home. A home inspector can not possibly catch every issue, however, they are able to assist in mitigating loss. They will also provide a detailed report of the home that will help you keep up with the maintenance of your property moving forward.
There will also be a termite inspection around the same time that is is required by the lender. The buyer or seller can pay for this (unless you’re a VA buyer, the seller will pay for this). The termite inspection will check for active termites, termite damage, wood destroying organisms and joists (if on a crawl).
Negotiate repairs with seller
If there are repairs needed from the home inspection, these will be negotiated with the seller. Typically repairs are limited to safety issues, such as plumbing, electric, hvac, roof leaks, etc. However, everything in real estate is negotiable!
Home appraisal
Once the home inspection is complete the lender will order the appraisal. A licensed appraiser will come to the property to assess the value and make sure you and the bank are not over paying.
Get homeowners insurance
You will want to shop around for home owners insurance and make sure you are getting a decent rate! I also always recommend flood insurance even if your home is not located in a flood zone.
Switch utilities to your name
Next, you will want to switch the utilities to your name. You will give the utility company your closing date as the day to start services.
P.S. don’t forget to update your address with the post office!
Final walkthrough
24-48 hours before closing, we will conduct a final walkthrough of the property to make sure it is In the same condition as when you first fell in love with it! We will also verify all repairs have been completed. This is an important step because once you sign, the home is yours in that condition!
Close with attorney/ title company
You will sign the paperwork with the closing company and get the keys to your new home!
Celebrate!
Congratulations, you are now a home owner!
Wondering if buying is right for you? Let’s talk!