The Home Buying Process — an Overview
The home buying process is something that can make some first time homebuyers apprehensive about purchasing their new home — and that’s completely understandable, considering the amount of misinformation circulating across the Internet and media. Ignore what you hear and listen to mortgage industry experts you can trust. Below you’ll find a simplified overview of the typical home buying process, which will hopefully clear up any misconceptions you may have about buying a home:
- A family, partners or a single person decides to buy a home — they now become the “buyer”.
- The buyer submits a formal, written offer to the seller’s agent.
- If all goes well, the seller will accept the offer, start negotiations, or simply reject it.
- Once the buyer accepts the offer, both the buyer and seller sign a contract, which is usually contingent on factors such as an approved home inspection and securing of the buyer’s mortgage.
- Earnest money, which is defined as a payment made to secure a contract, is deposited into an escrow account.
- The buyers secure their mortgage.
- The home is both inspected and appraised.
- The deal is closed, and the possession of the home changes hands.
It is important to remember that the above is a general overview, and each transaction has its own unique set of rules and challenges depending on factors such as state and federal rules and regulations. Within each step there will be ramifications, but with the right lender everything will hopefully go smoothly. If you have any questions about the home buying process, do not hesitate to fill out the form below. We’d be happy to help.
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