Housing Services Resources

Buying a Home...1, 2, 3: How Does the Home Buying Process Work?

Overview

Buying a home involves many steps, which take time and patience to complete.

The more you know about the process and the better you plan for each step, the more likely you are to have a good home buying experience.

1. You decide that buying a home might be right for you.
   
   
2. You learn about home buying through a home buyer education course.
   
   
3. You decide that buying a home is right for you.
   
   
4. You think about what kind of home best fits your needs.
   
   
5. You analyze your financial situation. You review your budget, examine your credit standing, and decide what you can afford to spend for a house.
   
   
6. You shop for a lender and get pre-approved to determine maximum loan amount.
   
   
7. Submit application for mortgage.
   
   
8. You select a Realtor.
   
   
9. You shop for a home within your loan limit.
   
   
10. You select a home, make an offer, and agree on the final sales price.
    
    
11. You sign a “Real Estate Sales Agreement” and furnish a check for an earnest money deposit (The clock starts ticking towards a closing date).
    
    
12. You have the home inspected for condition and needed repairs. Submit Pest and Dry Rot Inspection report to lender.
    
    
13. You obtain homeowner’s insurance.
    
    
14. Lender orders appraisal to determine property value to support loan amount.
    
    
15. Lender notifies the escrow company (closing agent) that loan is ready close; escrow company informs you of your portion of funds to bring to closing. You obtain a certified check for the closing.
    
    
16. The real estate transaction is processed and closed. Various closing tasks are completed by a closing agent, the seller, and the buyer:
    
    
    • The closing agent: prepares all documents and coordinates the signing of documents, the transfer of money, and the transfer of ownership.
      
      
    • The seller: provides clear title, the deed and certificates as required. Certificates should include pest/dry rot inspection, energy efficiency rating, or anything else specified by law or your purchase agreement. You, the buyer: provide verification of insurance and mortgage. You pay down payment and closing cost.
      

You are now a homeowner! You move your possessions into the home. You take care of your new home. You make your monthly payments on time, every month. Congratulations are in order!

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