10 Steps to Buying a Home
Purchasing a home is a big investment and should not be taken lightly. Using a REALTOR® will help guide you through the process, but here is a quick checklist of what to expect.
1. Meet with a real estate professional. Understanding today’s real estate market is the foundations of your homebuying journey ending in success. Your agent will complete a thorough interview to assess your needs and explain the process. Remember, Alabama is a ‘Buyer Beware’ state – the reason you need a trained professional navigating the process for you. Signing a Buyer Agency Agreement confirms that you want to work together. The best part is that having a REALTOR® represent and advise you costs nothing! The seller pays the REALTOR® commissions.
2. Create a budget and Pre-qualify for a mortgage loan. Your agent will discuss your desired budget and lifestyle to keep you on track during the process. Meeting with a local lender will confirm your budget and show the seller of the home that you are serious and have been pre-qualified with a lender.
3. Prep for Success. Prioritize your needs and wants. Your agent will help you keep focused on your end goal. Your agent will begin sending MLS listings for you to review. Remember to focus on your main priorities.
4. Tour Homes. As you begin touring homes, take notes and ask questions. Don’t try to tour too many homes at one time and get them confused. A second viewing of the contenders will help narrow the choices.
5. Make an offer. After you have found “the one,” it’s time to make an offer. Your agent will put together a written purchase offer to present to the seller’s agent. The offer will include your offer price, any items you would like to remain with the home and any contingencies.
6. Negotiations and Contracts. At this stage, you must be prepared to negotiate or even walk away if the terms are not right. The seller will accept, counter or decline your offer. If accepted, you will move on to the next step. Your agent will be there to guide you along the way.
7. Under Contract and Loan Process. After terms and price have been agreed upon, you will need to deliver the earnest money. There are certain timelines that must be met such as inspections and loan application. Your agent will keep you on track!
8. Inspection. Most buyers will have a home inspection and request repairs for items that are covered in the sales agreement.
9. Final Inspection, Insurance and Utilities. After all repairs, if any, are complete, your agent will set up a time for you to check the home for the last time prior to becoming the new owner. Prior to closing you will need to set up your home insurance and make plans to have utilities on in your name.
10. Closing Day! It’s finally here when the ownership is transferred to your name at the closing attorney’s office. You will receive keys to your new home as you are now the proud new owner!
