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The Process Of Buying A Home
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Copyright Lawrence Yerkes. May not be reproduced or reprinted without permission in writing. All rights reserved.
Buying a home can be a positive and rewarding event -- provided you use the right real estate professional and you understand the process of buying a home.
There are several steps or phases that we have identified in the real estate home buying transaction process. All real estate home purchases involve these steps, often varying in the details, but you can not have a successful home purchase without properly executing these steps.
ARTICLE OBJECTIVE: To give you a basic understanding of the Home Buying Process and to minimize your risks and maximize your results by identifying and using the right real estate professional to guide and assist you in the process.
1. Analyze and determine your needs -- both short term and long term.
Identify and validate reasons for purchasing: transferring, upgrading, downsizing, fulfill a life dream, financial...
Determine desired time frame. (Whether you need to buy immediately or can afford to wait; whether your purchase is contingent on selling your current home -- this will effect pricing, the homes available for you to consider, negotiations, etc.) [See "Process
of Selling A Home" if you must sell your current home in order to afford buying another home.]
Evaluate desired price range. (Pricing will directly impact qualify, location, length of time to find property that meets your requirements. You will confirm and set pricing in Step #2 below.)
Calculate current cost of ownership (investment equity) and how much you need to break even if selling your current home. (What is your break even point?)
How much money do you able to put down on a property at settlement?
How much money can you place in escrow as a good faith deposit upon making an offer and/or at the signing of a Contract For Sale?
What are the location(s) to which you are interested in relocating. What are the criteria for selecting and their priority? (For example, is quality school system more important than amount of land, tax rate or access to major means of transportation and jobs?)
*IMPORTANT!* Have you been pre-approved by a mortgage company? (And do you have a Pre-Approval Letter from them?)
If not, and you do not have a mortgage company with who you are currently working, click here to request a mortgage pre-approval. [Note: We have no financial relationship with any mortgage service. Any mortgage contacts that we provide are strictly based on past performance experience, but there are no guarantees of future service satisfaction nor best price. It is your responsibility to thoroughly investigate and determine best fit for you own unique needs.]
Make decision to continue process of buying a home.
Note: The above step requires action by the buyer to make a decision to begin searching for a house to buy.
2. Identify an agent with whom you are comfortable and has the proper credentials and experience for your situation.
Manage your risks.
Having someone with the proper depth of training and breadth of experience to assist and guide you through the buying process steps will greatly reduce your risk, your overall costs, and minimize your chance of unpleasant surprises, undue stress and being inconvenienced or disappointed. You want someone that has faced enough situations so that they can more easily and effectively handle and deal with any problems that will occur during the real estate transaction that you can not foresee nor plan for in advance and that are outside of your control.
Make sure that the agent is a full-time professional so that you get a 100% commitment of their time to real estate service.
Note: Some say that Step #2 should come before or in conjunction with Step #1 above, so that the agent can facilitate and provide input to your decision making process. We believe that at least some initial thought and determination to buy a home should proceed engaging the help of an agent.
Maximize the potential to find the right homes on the Internet.
Since everything is heavily Internet oriented nowadays, it's important you have Realtor that has a strong web presence and web sites that provide state-of-the-art search and support facilities, reaching as broad an audience as possible and able to target specific market segments.
We have earned NAR's
designation, confirming that we have a
of what it means to
and the concerns of those seeking
knowledge about real estate.
(Click here for our GREEN Resources page.)
Make available your mortgage company's Pre-Qualification / Pre-Approval Letter to agent.
Have agent suggest, or get you in contact with, possible mortgage companies for you to check out if you do not yet have a pre-approval letter -- otherwise, we can not proceed to step #3. [Note: We have no financial relationship with any mortgage service. Any mortgage contacts that we provide are strictly based on past performance experience, but there are no guarantees of future service satisfaction nor best price. It is your responsibility to thoroughly investigate and determine best fit for you own unique needs.]
Confirm (with input/guidance from the agent) to proceed with purchase of home and the time frame for closing and taking possession of your new property.
Notes: Step #2 requires action by the buyer to select a Realtor that is a best fit for buyer's situation and needs.
Consumer Notice: One of the first items of business every Realtor is required to do by state regulation is presenting an information notice prepared by the state Real Estate Board for you to review and sign (this is not a contract, just a proof for agent that it was shown to you) so that you understand the different forms of real estate agency.
The following steps are carried out by the buyer with the aid / guidance / support of the Realtor or by the Realtor on behalf of the buyer. The timings for each step will vary, many times overlapping, but no step can be skipped.
3. Establish Price Range and Location of Homes To Be Searched.
Continue process with the following link...
The Home Buying Process - Steps to buying your new home
|Real Estate Glossary
|Common Real Estate terms.
|Real Estate Glossary - General
|Regularly used Real Estate terms. (Provided by the e-PRO organization.)
|Real Estate Glossary - General #2
|Definitions for common real estate and legal terms.
|Real Estate Abbreviations
|Abbreviations appearing in real estate listings and what they mean.
See additional reference resources available at the: Real Estate Library Resource Center
More Articles Of Interest to Buyers:
Anatomy Of A House
Buying A Home - Questions and Answers (HUD Article)
Choosing The Right Paint Color for the Interior of Your Property
Foggy Windows Can Be Repaired
Feng Shui - What It Is And How It Can Be Used In Real Estate
Home Inspection Basics
Homeowners Home Inspection Guide
Leave Water Damage Remediation To The Pros
Mortgage Pre-Qualification and Pre-Approval Process
Moving Check List
Polybutylene Plumbing: Waiting to Burst
Pre-Qualifying vs. Pre-Approval
Real vs. Personal Property
Septic Systems - Homeowner Maintenance
Buyer Resource Articles from Realty Reality:
Best Places To Live In Rural America
Best Place to Live in USA: Moorestown, Burlington County, New Jersey!
Buyer Beware: Insurability of Property
Consumer's Inspection Kit From Freddie Mac
FHA Launches Education Initiative to Assist First-Time Minority Homebuyers [2006/03]
Finding the Right Home
Fire Sprinklers Increase Home's Value
Free - HUD "Buying Your Home" Guide
Fuel Cost Calculators and Comparisons For Your Home
Ginnie Mae: Your Path To Homeownership
H.O.M.E.* Closing Costs
Home Buyers and Sellers Resource Page
Homebuyers: Let Your Buyer's Agent Be Your Guide
House Appreciation Continues At A Robust Pace, According To The OFHEO [2006/03]
Housing for Older Persons
How and Where to Buy HUD Homes
HUD Announces Higher FHA Home Limits [2006/01]
Lead-Based Paint In The Home - Safety Issues from HUD
Make Sure Termite Inspection Reports Use Current Form
New Home Repair Program Makes FHA-Insured Home Loans Even More Attractive
New Jersey Real Estate Listings - Investment - Including South Jersey
NJ Fire Extinguisher Legislation Signed Into Law
Pre-Qualifying Helps Determine How Much House You Can Afford
Preparing for Homeownership
Private Well Testing Act (PWTA) of NJ [2006/02]
Real Estate Matters: News & Issues for the Mature Market - 3rd Quarter 2005 - Home Inspection
Rent vs. Buy - How Much Can You Afford?
Septic Systems - Owner Maintenance
Should You Consider Buying A Condo?
Spot Landscaping Red Flags When Looking at Homes For Sale
Tax Information for First-Time Homeowners (IRS Publication 530)
Top 4 Features Buyers Look For, Besides Price
Top Mistakes of Home Buyers and Sellers in 2005
Understanding Home Warranties
Virtual Home Inspection - AHSI
What's $400,000 Buy?
What's In, What's Out With Homebuyers In 2006 [2006/02]
What’s it Worth? - NAHB House Price Estimator
Click here for additional articles of interest to Buyers via our Residential Homes Real Estate Category Index Page
See also Realty Reality Real Estate Market Trends Articles
Good Time To Buy / TV: Click here to view the short NAR TV consumer awareness segment, Good Time To Buy.
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