Home Buying Process and How It Works

Home Buying Process and How It Works – Whether you’re a first time buyer or it’s been 20 years, you may want to know the steps to buying a home.

Home Buying Process

1. Meet with a real estate professional: Discuss the type of home you’re looking for, including style, price, and location.
The Buyer’s Advantage: As the home buyer, your agent’s commission is paid by the seller of the home in almost all circumstances. This means your representation costs you nothing!

2. Get Pre-Approved: You will need pay stubs, W2s, 2 years of tax returns and bank statements. Knowing what you can afford is critical to a successful home shopping experience. Your real estate agent will know a few good lenders to refer you to.

3. Search for Homes: The fun part! Your agent will schedule showings and help you find the perfect home.  When you have a clear idea of what you want, it will be easier.  You’ll help by sharing which listings interest you.
Advanced Search: Not all real estate websites are the same. Your real estate professional has tools and systems to ensure you see every available home that meets your criteria.

4. Make an Offer: Your agent will prepare your offer based on the price and terms you choose.

5. Negotiation and Contract: It may take a few tries to get it just right, but hang in there. You’re on your way!
The Contract: In most cases the contract provides you with a timeline to obtain financing as well as time to inspect the physical condition of the home. Your real estate professional will inform you of all your rights and responsibilities related to the contract.

6. Under Contract or In Escrow: You and the seller have agreed to the price and terms. The home is effectively held for you until closing.

7 Final Details: Perform due diligence, order the appraisal, conduct an inspection, and review terms with the lender.

8. Preparing for Closing: You will be finalizing your loan, reviewing documents, and discussing the findings from the inspection. Your agent will manage this entire process for you.

9. Closing: This is the transfer of funds and ownership. A title company or an attorney typically acts as an independent third party to facilitate the closing. Closings can be done remotely or locally.

Please let us know if you have any questions about the home buying process or selling a home on Anna Maria Island, Cortez, NW Bradenton or Longboat Key, Florida.

Jen and Mark Bowman, Keller Williams on the Water 941-840-0117.
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Comments

  1. Sarah Smith says

    My husband and I are planning on buying our first home. Thanks for the information about how in order to get pre-approved you will need pay stubs and W2s. Something else to know is that you should make sure that your debt to income ratio is under 45%.

  2. says

    I agree that you should be sure to get pre approved before you start house hunting too much. It’s important that you know what your financial limitations are when looking for homes that are for sale. Plus, there are so many options to look through that could waste a lot of your available time if you don’t know what you range is.

  3. says

    Thank you for all this great information about choosing a house! One thing that really stood out to me is that you say to make sure that you get preapproved before you even look at houses. I know that I would want to know that I will actually be able to get a house before I find one I like.

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