Basic Steps in Home Buying
Step 1: Defining What You Want
Start by creating a prioritized list of features you want in your next
home and the reasons why. Use it as your search guide, but
remember that depending on your funding, you will probably need to
make some compromises. In addition, talk to your real estate
professional about where you want to live. Location is a huge part of
any move. CENTURY 21 professionals are trained to help their clients
narrow down their choices by sharing market trends and local
information like neighborhood statistics and community links.
Step 2: Figuring Out What You Can Afford
Now that you know what you want, it's time to see what you can
afford. You can start by crunching the numbers yourself using our
selection of calculators.
When you're ready to move to the next step, you can get pre-approved for a mortgage. This process can
often be performed in under an hour and it accomplishes two important goals. First, it will tell you how
much house you can afford and what your monthly payments would be. Second, it tells the seller that you
can afford to buy their home.
By definition, a pre-approved buyer has an approved mortgage subject to an appraisal of the property. Many
times a buyer can use this pre-approved status as leverage during the negotiation process.
Step 3: Shopping For Homes
Once you know what community you'd like to live in and
have an idea of how much house you can afford, its time
to start checking out actual properties. Beginning this
search online can help save you time since it can help you
target homes that meet your search criteria. Our home
notifier can even email you when properties come on the
market that meet your search criteria.
Next, begin visiting homes in person. Ask your local real
estate professional to arrange visits and attend open
houses that are in your target area and price range. When
comparing homes, make sure to look at all aspects of the
property. Is the property tax approximately the same? Are
both the houses renovated? Do they both have the same amount of bedrooms and bathrooms? Are both
houses located on the same or similar streets? Does either house have any encumbrances?
Remember to keep an open mind when you are looking at homes. Use a virtual home planner to help you
imagine what the house could become with you as the owner.
Step 4: Making An Offer
Once you find the home you want, you need to make an offer for the
house. Typically this is a very difficult and trying time since both parties
have totally different goals. In most cases it is better to have a third party,
such as a real estate professional, negotiate the offer. If you have any
personal interaction with the homeowner, don't give out any information
about your move, your current housing status, financial status or your
feelings about their property - positive or negative. This could hurt you in
future negotiations.
This might also be a good time to consider purchasing a home protection
plan. These insurance policies can be purchased by the buyer or seller
and help protect against unexpected costs or home repairs during the
listing period or in the initial years after a home has been purchased.
Step 5: Inspection & Insurance
After your offer is accepted you will need to set up, coordinate and interpret various inspections, including insect, radon,
building quality, oil tank, title, etc. You will also need to arrange for homeowners insurance and finalize the mortgage.
This is a major step in the buying process and there are many potential problems that can be discovered during this
period. These include a leaky roof, radon gas, termite damage, a foundation problem, and wall cracks, to name a few.
These problems happen all the time. The difference between closing on your dream home and starting the process all
over again is what occurs during the negotiations between you and the seller.
Your CENTURY 21® Real Estate Professional can help make these discussions go more smoothly. In most states you will
also have the option of a "walk through" before the closing. This is your last chance to make sure that all of the items that
you have agreed upon were completed to your satisfaction.
Step 6: The Final Closing
Before you arrive at the closing, make sure all the necessary paper work
and deposits have been completed. If the mortgage, title work,
homeowners insurance and other items necessary under local and state
laws are not completed and brought to the closing table, the closing may
not happen on time. And, depending on what the contract says, this
could result in further action including financial penalties and even the
loss of your rights to the home.
Once you close, it's official - you own the house! But there might be a
few things you want to do before you lay out the welcome mat. These
include arranging for an alarm system, turning on the electricity,
subscribing to the local paper, cleaning or replacing the carpet, arranging
for lawn services, etc. This could also be a good time to make some
needed renovations.
Be sure to turn to your CENTURY 21 real estate professional for guidance and information about many money-saving
offers available to CENTURY 21 customers.
Craig L Schreiber, GPA
Cell Phone: 608-576-8635