ABODE Buyer Guide

The Home Buying Process

The Home Buying Process

Planning & Preparations

1) Consultation Meet with your Realtor to discuss the process of buying a home and the best strategies to help you secure a property.

2) Meet with a lender to get pre-approved and learn what you can afford. Don’t know any lenders? Trusted agents have great lenders to recommend.

3) Set search parameters in a buyer consultation with your agent so you are on the same page.

Find a Home

4) View properties. After the buyer consultation you can focus on properties that match your criteria.

5) Request and review disclosures. When a property piques your interest, your agent can request the property disclosures and review them with you.

6) Check the comps. You agent will review comparable properties that sold recently to get a better valuation on an offer price.

Prepare & Submit an Offer

7) Strategize with your agent on the best price and terms for a strong offer.

8) Submit offer. Your agent will package your letter, pre-approved documents and offer, and submit the package to the listing agent for review.

9) Congratulations! Your offer is accepted and you are now under contract. As each property is unique, your transaction time may vary.

Inspection & Closing

10) Drop off or wire earnest money deposit Earnest money gives your offer validity and is due in escrow after your offer is accepted.

11) Inspections. Your agent will help set up the inspections of the home, and you will want to be present during them.

12) Negotiate. Review the inspection reports and negotiate as appropriate.

13) Remove loan/appraisal contingency. Loan or appraisal contingencies can be a major negotiation point in a competitive market. Talk to your agent about how to structure your offer’s terms to get a competitive edge.

14) Final walk through. You have the right to inspect the house prior to closing.

15) Sign the closing documents. We will coordinate closing with your lender and title company to sign your closing documents

16) Get the keys. Congratulations on your new home!

What happens after going under contract

Lending Process:

This can be frustrating — prepare yourself to provide bank statements, tax returns, pay stubs and more, to your lender. Be sure to protect your credit rating by following the 10 Rules of Home Loans.

The 10 Rules of Home Loans:

1. DO NOT change jobs, become self-employed or quit your job.

2. DO NOT buy a car, truck or van (or you may be living in it!)

3. DO NOT use charge cards excessively or let your accounts fall behind.

4. DO NOT spend money you have set aside for closing.

5. DO NOT omit debts or liabilities from your loan application.

6. DO NOT buy furniture.

7. DO NOT originate any inquiries into your credit.

8. DO NOT make large deposits without first checking with your loan officer.

9. DO NOT change bank accounts.

10. DO NOT co-sign a loan for anyone.

Examination & Title Search:

Verification of the legal owner and debts owed. Copies of documents are gathered from various public records: deeds, deeds of trust, various assessments and matters of probate, heirship, divorce, and bankruptcy are addressed.

Upfront Expenses:

There are upfront costs associated with buying a home that do NOT include your down payment or closing costs. These costs will not be refunded if the transaction does not close. All prices are estimates and may vary depending on the home you purchase.

Inspections (all prices approximate)

• General Home inspection $450-$700

• Water Test $165-$250

• Radon Air and Water $175-$250

• Sewer/Septic $285- $350

Appraisal $700-$1200 - this will be ordered by your lender.

Moving Expenses These vary depending on if you hire movers or do it yourself!

Home Inspection

We highly recommend that you have a professional home inspector conduct a thorough inspection of the home.

The inspection will include the following:

Appliances Plumbing Electrical Heating

The inspection is not designed to criticize every minor problem or defect in the home. It is intended to report on major damage, serious problems or safety concerns that require repair. Should serious problems be indicated, the inspector will recommend that a structural engineer or other professional, inspect it as well. The inspector’s job is to make you aware of repairs that are recommended or necessary.

We recommend being present at the inspection so you are informed of the areas of need and will clearly understand the inspection report. Being present will give you answers to many questions, tips for maintenance, and general information on your new home. Most importantly, you will see the home through the eyes of an objective third party.