A Playbook of What to Expect

Part 1 : Pre-Approval

Typically, the first step is the pre-approval process. This helps determine the best price point for you. This is the general process.

  • Submitting financials (income, assets, credit)

  • Lender reviews and issues a pre-approval letter

  • Monthly payment and price range are established

Part 2 : Home Search and Tours

Once the price point is determined, the fun part begins. Touring homes lets you understand what exactly you would want in a house by experiencing the wide variety of builds. Here are a few things to help you weed out what you want efficiently.

  • Define your must-haves vs nice-to-haves

  • Listing photos help you get a sense of what the home will be like, but in person gives you the best understanding

  • Review disclosures when available

  • evaluate neighborhoods and commutes

Part 3 : Submitting Offers

The offers and negotiations are the meat of the whole process. Through them you have the ability to tailor the deal however you want. This can include the below.

  • Purchase price

  • Seller concessions

  • Contingencies

  • Fixtures & Requests

The purchase price is the big one. Negotiating a lower purchase price that fits your pre-approval can help you secure something slightly out of your budget. But also offering at purchase price but asking for more seller concessions (closing costs, buying down the interest rate, repair credits, etc.) could make your offer more enticing because of the purchase price. It is important to understand the different ways to tackle an offer and what the differences could mean for you.

Part 4 : Under Contract and Inspections

When the offer gets accepted and the home goes under contract, we enter the due diligence phase. This is the crunch period. Timelines and due dates are important and should always be a priority. Here are some of the most important timelines.

  • Earnest money gets deposited

  • Home inspections scheduled

  • Specialty inspections if needed (sewer, radon, roof, etc.

After these inspections are complete, you have a few routes to take. You can proceed as-is if the inspection passes or if you are fine with the condition. You could also request repairs or credits from the seller to do repairs after close. If the report comes back and there are too many issues, you can always terminate the contract if the terms allow.

During the under-contract period, it is also important to understand all the terms of the contract. Make sure to go over it with your agent to understand everything. One thing that buyers forget about is the loan approval as well.

Part 5 : Final Loan Approval and Appraisal

This point runs in tandem with the inspections. Your lender of choice will continue the loan process and will need a few items completed.

  • An appraisal (ordered by the lender)

  • Any additional documents from the buyer

It is important that you keep a line of clear communication with your lender so that they can get the loan approved in time for closing. The appraisal is ordered so that the lender can assure the property's value. If the appraisal runs low, contact your agent and lender to see what the best thing is to do from there.

The biggest thing for you to do as a buyer is to not make any big purchases, no additional lines of credit, or change your source of income. Any change in your finances can lead to a lower loan amount and can cause the whole contract to go belly up.

Part 6 : Final Walkthrough

The final walkthrough is the last once-over before close. It is not another inspection, but a condition check. This usually happens 1-5 days before closing. This is what the walkthrough accomplishes.

  • Can verify the agreed-upon repairs are done

  • Ensure the home’s condition is unchanged

  • Confirm included items in the contract remain

Part 7 : Closing

The finish line. Your final day. This is where you, as a buyer, sign the loan and the closing documents. This is also when funds are wired to escrow and when the deed is recorded with the county to validate the deal and new ownership. For this day, you should bring a Valid ID and any additional funds if needed. Once the recording is confirmed, you officially have your new home!