The Home Buying Process Explained

The Home Buying Process

If you have never bought a home before then fasten your seatbelts because you are in for quite a ride! In a nutshell, here is how the process may be played out:

Once an offer has been accepted on the home, your lender will get you to complete a mortgage application form. Sometimes it is actually a better idea to get the mortgage loan process started even before you start looking for a home to buy. This way you can be preapproved.

Once your mortgage application has been sent in, the lender will commission a valuation report, to check the property is a reasonable risk for the lender. This is usually refered to as the appraisal and you may have to pay for this.

If buying an older house, it may be in your interest to get a full structural survey carried out. If the valuation ends up being lower than your offer, you will need to contact the seller and try to negotiate a lower price. If you are unable to do this, you will need to decide if you want to pay the price you offered or if you want to withdraw your offer.

The lender should make a formal mortgage offer if the valuation goes OK, together with pay slips, references etc. All legal work should be carried out by a qualified solicitor. This can be a professional realtor or a legal attorney that specializes in the field of real estate. They will work together with your mortgage lender and sort out any relevant documents and contracts.

In order for your offer to be accepted, the seller will traditionally require you to pay a non-refundable deposit. The earnest money deposit that you give up front can vary by location. This then sets your completion date and when your escrow will be scheduled to close. Before the close of escrow you will need to provide proof of insurance. On the completion of escrow you collect your keys and you now own the property.