A simple guide to the order of operations when buying a house. This quick guide answers the questions we get asked most often.
Pre-qualification: Before you start house hunting, it's important to get pre-qualified for a mortgage. This involves meeting with a lender or mortgage broker to discuss your financial situation, income, debt, and credit score. Based on this information, the lender can estimate how much you can borrow and what your monthly payments might be. This will help you determine your price range for house hunting.
House hunting: Once you have your pre-qualification, it's time to start looking for homes! You can work with your real estate agent to find properties that meet your criteria, such as location, size, and price. Be sure to visit each property in person to understand the layout, condition, and neighborhood. Take notes and photos so you can compare properties later.
Making an offer: When you find a home you like, you must make an offer. Your real estate agent can help you draft a purchase agreement that outlines the price you're willing to pay, any contingencies (such as financing or inspections), and the closing date. The seller can accept, reject, or counter your offer.
Home inspection: Once your offer is accepted, you'll need to have the property inspected by a licensed home inspector. The inspector will examine the home's systems, structure, and overall condition and provide you with a report detailing any necessary issues or repairs. This information can help you negotiate with the seller for repairs or a lower price.
Financing: While the home is being inspected, you must finalize your financing. This involves providing documentation to the lender, such as tax returns and bank statements, and completing a loan application. The lender will also order an appraisal of the property to ensure it's worth your borrowing amount.
Closing: Once your financing is approved and the home inspection is complete, it's time to close the sale! You'll meet with your lender, real estate agent, and the seller (or their representative) to sign all the necessary paperwork, including the mortgage loan documents, title transfer, and closing disclosures. You'll also need to bring a cashier's check or wire transfer for your down payment and closing costs.
Congratulations, you're now a homeowner! Remember, your real estate agent will guide you through the entire process and answer any questions you have.
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