The Steps to Buying a Home

I asked my realtor “now that we have put in an offer, whats next?” Right now – nothing, but if our is accepted a whole mountain of things must be done in short notice.

Once the seller accepts an offer, contract is usually signed which will generally stipulate a time-line and list things that must occur prior to the closing date.  Our realtor took the time to go over these with us and help set a time-line that could be manageable.

Some of the things that are generally found on contract include the following:

• Home Inspection – You should have the home inspected by a professional.  This provides the buyer a way out without losing much money in the event an unacceptable problem is found.
• Repairs – The buyer should submit a list of required repairs to be made to the seller for his acceptance.  During the negotiations between the buyer and seller on these repairs to be made the price of the home may be reduced in lieu of making repairs.
• Survey – This shows the boundary lines for the property including easements and structures
• HOA agreements and Subdivision Information – many urban and suburban properties will have a list of community requirements you must adhere to as a property owner – for instance, you may not be allowed to open a junk shop in your front yard.
• Home Warranty – A home warranty may be purchased which protects the buyer against major problems for the first year, these protection plans may be extended.
• Leaseback – if the seller needs a little time after the closing date in order to move, the seller may rent the house from the buyer for a specified period of time.
• Loan – Many people buy homes by taking out a loan, there are many different types with many different levels of risk.
• Insurance – The buyer must secure home owners insurance to satisfy requirements of any loans being made.
• Appraisal – The lender will require that the home be appraised.  This is to determine if it is actually worth the amount that you are agreeing to pay for it.
• Taxes and Exemptions – Taxes will need to be paid at closing, some areas allow exemptions which can reduce the tax burden
• Title Insurance – This protects the buyer in the event that a lien or other encumbrances are discovered on the title to the home .
• Title Company – These companies handle the legal transfer of the home to the buyer from the seller, they may also escrow your taxes and insurance dues.